How to Determine If You Need Warehouse Space

The first step in determining if you need warehouse space is taking an accurate look at your inventory numbers. Whether you use a third-party warehousing service or run operations personally, the number of products in inventory and the rate at which they move in and out will determine your storage needs. Generally, you want to ensure that your usable inventory covers your projected order volume plus a buffer for delays in resupply.

Next, you need to calculate the total area of your warhouse for rent. This can be done manually using grid paper or digitally through design software. You must take into account the size of the warehouse’s doors and stairways as well as any areas that are not available for product storage such as restrooms, boiler rooms or offices.

Prime Pickings: Discovering the Perfect Warehouse for Rent

Another factor that will impact warehouse storage capacity is your warehouse clear height. This is the distance from the finished floor to any overhead object, and it must be in compliance with local building codes. In general, you want your warehouse clear height to be at least 24 ft to allow for the movement of standard-sized pallets. If you store larger or irregularly shaped products, your warehouse clear height will need to be higher.

Once you know how much space you need for warehouse storage, you can begin looking at properties. If you’re a start-up business that will only need warehouse space during peak seasons, it might be more cost-effective to rent warehouse space than to invest in purchasing a facility. Additionally, leasing a warehouse can also provide more flexibility if you’re not sure how long you’ll need the space.

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