Businesses consider warehousing space when starting out, introducing a new product line, expanding to a new region or taking care of peak demand. To meet the growing needs of businesses in the US, the commercial construction industry has been steadily expanding since 2010. According to the data published by Statista, commercial buildings worth $74 billion were put in place to accommodate various business sectors across the US.
When considering a warehousing facility, many businesses feel overwhelmed about whether to buy or lease it. Smaller businesses often opt for renting or leasing because they are already short of capital and need liquidity for running their operations. There are, however, several advantages of renting that businesses do not consider, say experts at Samuel L. Bryant Investments, a company with over five decades of experience in providing warehouse space for lease in Houston. Here are a few advantages that you should take into account when making the decision.
4 Reasons to Rent a Warehouse
- Encourages Business Growth: Investing all the company’s assets in buying a warehouse is not a great idea, especially when small businesses are typically strapped for cash and may be borrowing funds for day-to-day operations. With any available funds, a business must look to expand the market reach, enter new markets or expand globally, rather than block up funds in a real estate investment. When the business invests its funds to acquire facility space, it is often unable to pay suppliers or employees, losing credibility. This can have a severe impact on success. So, for smaller businesses, outsourcing warehousing services along with distribution and other logistics may support growth.
- Eliminates the Stress of Added Expenses: When you buy a commercial property, you’ll have to deal with added expenses like property tax, insurance and equipment. This will eat into the pool of funds, while also becoming an area that requires your continued attention. It’s best for businesses to focus on their core competencies than to bother with the purchase of warehousing space and equipment, in which they may have no expertise.
- Take Advantage of Established Infrastructure: A business can find affordable warehouses for rent even in leading cities like Houston. Moreover, these may provide added advantages, like clear heights, which can accommodate greater storage without the need for more space. They are well equipped with central air conditioning and heating and all electrical and plumbing requirements are taken care of by the leaser. Many warehouses boast of sophisticated warehouse management systems and immediate access to a wide range of services like logistics.
- Flexibility to Move Out: When you rent a warehouse, moving out of it is a business decision. You’re not tied to the property in any way and don’t need to think of ways of selling it off at a profit.
If you know you’re going to require the facility for longer, you can opt for a long-term lease plan, which may offer you cost advantages. Smaller businesses with limited financial resources can consider a warehouse for rent from the several options available in cities like Houston.