Searching for the perfect warehouse space? I feel you. It’s a daunting task, especially with industrial real estate demand surging thanks to e-commerce. Whether you need a modest space to store inventory or a massive fulfillment center to ship online orders, finding that ideal New Jersey or New York warehouse is tough. You’ve got to weigh business needs, budget, location, and a zillion other factors.
There’s a lot to unpack before committing to long-term warehouse leases. However, taking the time upfront to gain clarity on your goals helps ensure you find the ideal fit. Then, you can get back to growth without location limitations!
In this blog, I will provide a comprehensive guide on key factors to consider when searching for warehouse space to rent in New Jersey, NY, and surrounding regions, along with tips to help you find and secure the perfect fit for your expanding business.
1. Determining Your Warehouse Space Requirements for Rent
The first step is gaining clarity on your ideal warehouse specifications so you can narrow your search effectively. Essential aspects to consider include:
• Layout: Evaluate workflow patterns and identify any special accommodations like cooling/freezers, exterior access for shipping bays, mezzanines, private offices, and more. Consider height requirements for pallet racking.
• Size: Calculate your current and near-future inventory storage, order processing, packaging, and shipping needs. If you want a warehouse storage for a large-scale company, allow room for growth by overestimating space requirements by 10-20%. Modern warehouses typically range from 5,000 sq. ft. to over 1 million sq. ft.
• Location: Pinpoint if you need proximity to ports, airports, highways, urban metro areas, or local labor pools. Also, factor in customer locations for last-mile deliveries.
• Features: Determine must-have amenities like ample parking, ceiling rigging, fire suppression, 24/7 access, and security. Also, consider convenient extras like on-site truck maintenance.
• Timing: Figure out when you need occupancy – immediately, a few months out, or longer term? How long is the ideal lease term?
Analyzing these specifications will help you zero in on facilities that align with your goals while avoiding wasting time touring inadequate spaces.
2. Comparing Warehouse Rental Markets in New Jersey, NY
Once your specifications are precise, you can start assessing different geographic markets that meet your location priorities. Here’s an overview of popular options:
• Central NJ: Offers prime access to dense population centers from a major transportation hub. Areas like Cranbury, Edison, Piscataway, and Central Jersey ports provide modern facilities near major highways, Newark Liberty, and JFK airports.
• Northern NJ: Gives you proximity to the New York City metro without the high real estate costs. Areas like Secaucus have excellent highway access and are popular e-commerce hubs.
• Southern NJ: Provides easy interstate access and ports, affordable real estate, and ample workforce. Key areas include Camden, Gloucester, and Burlington counties.
Prioritizing Convenience of Warehouse Location
One of the most critical factors to consider before you rent a warehouse in New York is choosing a location that optimizes transport connectivity for your supply chain and delivery network. Be sure to prioritize facilities that provide:
• Quick access to major highways and interstates – This enables efficient trucking routes for regional and long-distance product distribution.
• Proximity to ports and rail – Direct access reduces costs if you import/export goods regularly. Look for warehouses near metro area ports.
• Closeness to airports – Allows flexibility for air freight and business travel needs.
• ** LAST-MILE Delivery access** – Easy drive times to urban centers allow faster cycle times for e-commerce/retail order fulfillment and customer deliveries.
• Supplier and workforce access – Nearby vendor hubs and ample local employee labor will maximize operational efficiency.
Don’t compromise on finding a location central to your logistics flows. The incremental lease costs will pay dividends through transportation savings and productivity gains over time.
Comparing Options for Renting Warehouse Space
Now comes the fun part – exploring actual spaces for lease! The main avenues to find and secure rental warehouse space include:
Warehouse Listings on Online Marketplaces
• Websites like CubicShare provide searchable databases of available spaces with filtering tools to zero in on listings matching your criteria. You can shortlist options, contact landlords, and tour the most promising facilities.
• This approach gives you an efficient way to evaluate multiple options across metro areas, along with rental rate transparency.
Traditional Commercial Real Estate Brokers
• Experienced industrial brokers have specialized insight into local warehouse markets not always listed online. They can tap into their networks to find spaces that perfectly suit your specifications.
• The tradeoff is paying broker commissions. But you gain extensive real estate expertise.
Direct from Warehouse Landlords
• For specific buildings or landlords, you may want to contact them directly if you have existing relationships or don’t need broker assistance.
• This allows you to inquire about unlisted vacancies and negotiate terms. Be prepared for legwork researching and calling individual landlords.
• Having a broker like CubicShare in your corner is useful since landlords pay their fee, not you as the tenant.
Smart Tips for Negotiating Your Warehouse Lease
Once you’ve identified one or more suitable spaces, get ready to negotiate lease terms that meet your budget and flexibility needs. Use these pro tips:
• Ask about rent concessions – Landlords may offer 1-2 months of free rent, moving allowances, or reduced rates during an initial period.
• Request yearly rent bump caps – Try to limit rent increases to 3% or less annually. This controls costs, especially on longer leases.
• Negotiate lease term flexibility – With growth uncertainty, minimize risk with shorter initial terms, renewal, and early termination options.
• Look for landlord-funded buildouts/renovations – If substantial space improvements are needed, make the landlord foot the bill.
• Clarify operational responsibilities – Detail who handles repairs, maintenance, security, insurance, and property taxes to avoid surprise costs.
Don’t leave money on the table! An experienced broker can be invaluable for negotiating warehouse leases favorable to your business.
Rent Out Unused Warehouse Space & Turn it into Passive Income
On the flip side, do you own an underutilized warehouse facility? You can offset operational costs and earn substantial additional passive income by leasing out unused sections of your space.
Online commercial real estate marketplaces like CubicShare make it simple for warehouse owners to list and promote available spaces. You’ll gain exposure to many potential tenants seeking warehouse space.
Benefits of renting out or warehouse sublease in New Jersey include:
• Earning ongoing rental income from space that would otherwise sit empty
• Covering a portion of your mortgage/taxes and reducing overall facility costs
• Avoiding renovation and storage costs for unused areas
• Providing flex space as your business needs fluctuate
By itemizing lease rates by the square foot and defining tenant usage terms, you can maximize the value created from your vacant warehouse capacity. You control rates, amenities included, and the type of businesses you accept.
Post your listing and let the rental income begin flowing in! With demand booming for warehouse space, you’ll find tenants eager to fill your empty square footage.
Choose the Best Path Forward for Your Business
Finding the optimal warehouse space is a complex endeavor that combines thorough planning, market analysis, financial modeling, and negotiations. While challenging, choosing the right industrial facility provides a solid foundation supporting everything from inventory management to order fulfillment and logistics operations.
Use the helpful guideposts in this blog to drive progress towards securing warehouse space tailor-made to launch your business growth and expansion goals. With persistence and the right partners like CubicShare supporting you, your company will find its ideal new home.