Rate and Occupancy Trends for Warehouse for Lease

The rates for warehouses for lease around the country vary considerably, but many are extremely inexpensive. Generally rate is per square foot, and the amount of space you choose to rent is flexible.

The monthly rate per square foot for warehouses in the United States varies from $1.80 per square foot to about $14.00 per square foot.

Overall Warehouse Size as a Factor Rental Rates

It seems that in most cases the larger the warehouse the less expensive per square foot space is. It also seems that the more expensive warehouses are generally freestanding structures which are about 4000 – 10,000 square feet and the entire structure or fully half the structure is for rent. Large amounts of square footage available in industrial warehouse buildings in excess of 80,000 square foot are usually less than $6.00 per square foot, and may be less than $2.00 per square foot. Also if the tenant is expected or encouraged to take a large amount of space, then the cost per square foot is less, than if very little space were available.

Other Factors that Determine Rental Rates

Area, location within the city and other geographic considerations also play a part in the pricing of industrial warehouse space. There seems to be an abundance of warehouse space in some areas currently so this may be serving to reduce the price as well. The rates for space in larger cities are slightly higher, while warehouse spaces in economically depressed areas are more reasonably priced.

When is a Warehouse no Longer a Warehouse?

Warehouses are often quite a bargain for conversion into office space, apartments or even retail use, as well as for use as actual warehouse space. In many cities around the world it has become quite popular to convert historic and rustic warehouse buildings into trendy apartments, office space, art galleries, retail and etc. Usually the businesses that choose these types of locations are quite proud of their new office or retail space, and often refer to the history of their building.

Zoning

Zoning and specific restrictions for the area must be investigated before the property can be converted however. Many times these buildings are located in areas which have become retail or residential areas since their construction, making them impractical for use as warehouses, and much more lucratively used for retail or residential use. In these cases zoning has often already restricted the business use to retail or residential. Frequently zoning is an obstacle for warehouses located in industrial areas, but even zoning can be changed or exceptions made if there is significant community interest. While creating a trendy historic mall in the midst of an industrial area may be risky, it has been extremely successful in some cases.

Whether a warehouse is to be used as a warehouse or can be converted for another type of use, warehouses for lease have a lot to offer at a more reasonable price, than traditional retail, or living space. Huge modern warehouses for lease offer a reasonable rate for large amounts of commercial and industrial storage, while quaint historic warehouses offer atmosphere and character to office, restaurant and retail space.