A lot goes into the start of a small business. There are a lot of details and factors that a business owner will make mistakes on and will learn from their mistakes. There are also a lot of things that they will have to research and learn. A small business involves a lot of planning and preparation to ensure that everything runs as smoothly as possible. For example, someone wanting to get into a retail or shipping business will need to not only create their business name and their products, but they will also have to figure out if they will have a store front or how and where they will ship their items from. Determining warehouse space needs is definitely a learning process.
Warehouse development is on the rise, and there has been an increase in speculative building, too. About 62% of the 59 million square feet under construction by the end of the third quarter in 2013 was being constructed without signed tenants. Most of these warehouse builders and owners understand the high demand and the high need for warehousing, and know that they are likely to fill all of their leases fairly quickly. Determining warehouse lease space needs often increases the demand for the warehousing rooms.
Retailers online and offline will need a combines 25 million square meters in additional space over the next 5 years to store and handle the stuff they sell. This is from the high growth of E commerce and shipping companies. E commerce is expected to grow at a compounded annual average rate of 10% over the next 5 years, creating tremendous opportunities for owners and developers of warehouse and distribution space. This could also make it difficult for small business owners to find the appropriate warehouse spacing and commercial warehousing that they need for their supply. Commercial leases may be more difficult to come by, so it is always best when determining warehouse space needs to over calculate. Leasing retail space carries benefits for the small business owner, by allowing them to give up their lease space if they no longer need it.
Renting a warehouse and leasing office space are actually a great way for small business owners to begin their business with minimal risk. If they were to purchase the warehouse, and no longer needed all of the space, they would still be left with the monthly payments. Additionally, they may not make as much profits after they factor in the entire loan charges. They are also required to be more accurate when determining warehouse space needs. Leasing warehouse spacing allows the business owner more control over their monthly payments and the amount of spacing that they need.
Small business owners are constantly learning the best and the worst ways to do things. Owning any type of a business is a learning process. A business that provides a lot of shipping needs to focus on how and from where they will ship their items. A warehouse is a great idea because they have a lot of space. Leasing warehouse space allows the small business owner to fluctuate between their spacing requirements without having to worry about any loan costs.
