How to rent industrial or storage space for the first time: What you should know

In the UK, demand for industrial and storage space continues to grow. Warehouse space isn’t just somewhere to store stock, for some it has become the backbone of business growth, allowing for efficient distribution and smoother workflows. As a result, securing the right industrial warehouse or storage space has never been more important.

Learning how to rent a warehouse or storage space for the first time can be daunting, especially when you’re also trying to balance growth plans and navigate budget constraints. Thankfully, here at The Arch Company, we understand how to match your business with the perfect property.

This guide covers how to rent warehouse and storage space for the first time, from choosing the right size to understanding lease terms and everything in between.

What size warehouse or storage space do I need?

In order to select the right industrial warehouse or storage space for you, the first key consideration is accurately determining how much space you will need for your business to operate at its best.

6 size considerations to make before buying or renting a warehouse or storage space

Picking the right size is one of the most important early decisions for any small business renting industrial space for the first time. Choosing a space that is too large can result in wasted costs, while a space too small can lead to operational disruptions and inefficiencies. Carefully plan and consider the following to select the right sized space for your operation.

1. What will the space be used for?

Begin by assessing the primary purpose of your space. Will it be used for manufacturing, storage, order fulfillment or a combination of these functions? Understanding the nature of your operations will help shape your space requirements. Consider the specific characteristics of your product. Is it bulky, fragile, perishable or perhaps it requires specialised handling. These factors will have a direct impact on how much space you need.

2. How much product will need to be stored and how?

Calculating the space you need goes beyond simply estimating storage volume. Start by evaluating how much product your small business manufactures, packages and moves on a weekly or monthly basis.

Also consider if there are periods of fluctuation. Could you produce more one week than another? Will shipping be delayed during certain periods, resulting in product accumulation? Your space should have enough capacity to accommodate unexpected surges, such as an additional week’s worth of inventory.

Additionally, take into account how you will store your product. Will you be using shelving units, pallet racking or another way? If so, factor in the vertical space requirements for safe and efficient storage.

3. How will you move your product?

Another key consideration when planning your space is how your product will be moved throughout the facility. Your layout needs to be able to support efficient product flow of goods, from arrival through to dispatch. Make sure there is adequate room for designated loading and unloading zones, as well as dedicated packaging and preparation areas. Your space may also require you to factor in a reception area for visitors.

4. What equipment will you need?

If your operations rely on machinery, tools, vehicles or any larger-sized specialised equipment, it’s essential that your space provides enough room to accommodate them. The space should also allow for easy and safe movement of equipment, as well as dedicated storage areas when not in use.

5. How much space will your operation grow over time?

By planning ahead, you avoid the cost and disruption of relocating down the line. Forecast your operational needs over the next 1-3 years. Consider how your output, staffing and equipment requirements may change. Ask yourself, will your production double? How will you cope with that increase from an equipment and staffing point of view? It’s also beneficial to build in contingency plans to accommodate for unforeseen spikes in activity.

6. Don’t forget about the essentials

It’s easy to lose sight of some of the key essentials that support your team and customers when your product and operations are so important. However, a functional, well-designed space should not only facilitate production and storage but also provide enough room for comfortable and functional workstations and breakout areas, allowing your staff to take a well-earned break and eat some food. Also, make sure to allocate enough space for a front of house area to accommodate clients, couriers or other external guests.

Best locations for an industrial warehouse or storage space

Choosing the right location for your space is another crucial element of renting the perfect facility as it greatly impacts the efficiency and success of your small business. Your chosen location also affects logistics, costs, accessibility and compliance with the local regulations. Here’s how to find a warehouse or storage space for rent and all the key factors to keep in mind:

Transport links and infrastructure

An efficient transportation infrastructure can elevate your business’s supply chain, ensure timely deliveries and reduce overall costs. Having major transport routes nearby is essential for distribution. Check to see whether any of your potential spaces are close to:

• Motorways and major roads for quick movement of goods.
• Rail networks for bulk transportation.
• Ports and airports for international shipping.

Proximity to suppliers and/or customers

Having a space close to your supplier/s can benefit your operational efficiency and finances. Shorter transportation time allows for a quicker turnaround on incoming materials and outgoing deliveries, minimising delays. Being closer to your customers also enables your business to provide more flexible delivery options, enhancing your service and strengthening relationships with clients.

An additional benefit of having your warehouse or storage space strategically placed close to suppliers and/or customers is a lower carbon footprint and potentially lower fuel and distribution costs too.

Business rates and operational costs

Non-domestic properties, including warehouses and storage spaces, are charged business rates, which is a tax applied to properties used for business purposes. They vary depending on where the property is located and are based on your property’s ‘rateable value’, estimated by the Valuation Office Agency. You can calculate your rates by going to the government’s website.

These rates must be paid by anyone responsible for the business property.

Planning and regulations

Before deciding on your location, the final consideration should be to review local planning permission and restrictions. This is because certain locations may limit elements such as a building’s floor space, heights and/or usage types.

Remember to take into account the growth of your small business. A particular warehouse or storage space may be suitable now, but will it satisfy your needs in 12-24 months. Will you be able to expand the premises if needs be?

Key questions for your landlord before renting

It can be beneficial to ask your landlord a few additional questions surrounding the warehouse or storage space before signing a lease to gain a fuller understanding of the premises.

The building’s history

Understanding how the space has been used before your arrival allows you to get an understanding of its durability. Ask your landlord about who the previous tenants were and what kind of operation they ran. You should also ask about any recent repairs or recurring maintenance issues that will likely need your attention during your tenure. Doing so will reveal any potential structural problems, outdated systems or hidden costs that may impact your business.

Neighbouring businesses

Gaining insight into businesses nearby can give you an understanding of whether there are likely to be any conflicts with your business. These can be factors such as noise, hours of operation or significant traffic flow.

Documentation

Request to see any documentation relating to the warehouse or storage facility. This will help you evaluate the space more effectively. Examples of documentation your landlord may have include detailed floor plans, site plans, maintenance records and any past utility bills. Seeing these documents will provide you with a clearer picture of costs associated with operating your business and can plan for any upcoming maintenance obligations. Having this transparency before committing to a lease deal can protect your business from potential future headaches and ensures your chosen warehouse or storage space is fit for purpose.

Can you adapt your space to meet specific requirements?

Once you’ve fully assessed the space you’d like to rent, a final key consideration is understanding how flexible it can be and how much can be altered to meet your operational needs. Here’s a quick checklist of a few things to think about and points to discuss with your landlord:

Assess existing infrastructure

The best starting point is to assess what the space already has in place. Does it have storage racks? Is the lighting adequate in its current state? Is there enough capacity from an electricity point of view? Does it have internet access?

Determining what’s already in place enables you to properly evaluate what modifications may need to be made and the cost of making those changes.

Confirm landlord consent

Before making, or planning in, any modifications to your space, you will need written approval from your landlord before you can make a start. Make sure all proposed work complies with health and safety requirements and UK building regulations.

Improvements being made to the premises should be a coordinated effort between the tenant and the landlord, especially when involving contractors, permitting processes and creating clear project timelines.

Schedule modifications

By efficiently scheduling any modifications you intend to make, such as equipment installation, inventory transfer or health and safety features, ahead of time, you can reduce disruption and help maintain business continuity.

Prioritise health and safety

Making sure your warehouse or storage space is fit for purpose in regards to health and safety is of vital importance. Verify compliance with fire codes, occupational health regulations and security standards. Prioritising health and safety gives you, the tenant and your landlord the peace of mind that both the premises and its workers are in the best care.

Technology integration

By integrating up to date technology into your space, such as smart systems to aid with inventory tracking, warehouse management and access control, you can streamline your small business’s operations and also future-proof your facility.

Renting an industrial warehouse or storage space for the first time can be a little daunting at first, but if you spend the time and effort to properly plan out and consider everything mentioned above, your space will become one of your most powerful assets for growing your business.

Don’t hesitate to seek professional advice from legal, financial or operational experts along the way. Here at The Arch Company, we are also always available to provide support to help small businesses navigate the process with confidence. If you need any help with renting a space you can contact us and one of our helpful team members will get back to you as soon as possible.

Check out our related blog: Choosing a commercial property that grows with your business