One of the biggest mistakes I see companies make when renting warehouse space is that they start their search too late. They like to wait until the last minute when they need it within 15 to 30 days which is a huge mistake that can cost you money and potential disruption in your business. While this may be ok if you are leasing less than 5,000 sf, however if you need to rent 10,000 or more sf of warehouse space then it’s best that you start the process of finding warehouse space for rent at least 6-12 months before you need the space or before your existing lease expires
Reasons why to start your warehouse space search early
- If you live in a hot market like Austin, Tx you may find that there is not much inventory of available space, thus have to wait for something to open up or be built
- If you need to rent 20,000 to 30,000 sf or more there may only be new warehouse space in shell condition available, which means it will need to be built out which can take 90 to 120 days or more.
- Your new warehouse build out could take longer than expected especially if the landlord and/or contractor cause of bunch of delays
- If you put yourself in a bind of needing space ASAP you lose leverage in negotiations with landlords
- Your build out costs could be higher than when you have planned ahead
- You won’t have the time necessary to be diligent in negotiations with multiple landlords to create a competitive environment
- You will cause yourself and your employees a lot of unnecessary stress
I understand it’s hard to predict how much warehouse space you will need 1, 2, and 3 years down the road however at some point you are going to have to do some planning and lease the industrial space before you need it. One quarter there may be plenty of space to choose from however the next quarter you may find that there is nothing available within your ideal size and layout. If that happens your only option is to consider brand new space which means you will have to wait at least 90 to 120 days to get it built out and have a certificate of occupancy so you can move in.
There are ways to structure industrial space rental leases where you can take more space now and not have to pay for it later. If you would like information on how to do this feel free to give us a call at (512) 861-0525