Factors in Calculating Cleveland Warehouse Lease Rates
Warehousing is a necessity for moving goods throughout the supply chain. For Northeast Ohio companies, the cost of a Cleveland warehouse lease is a key consideration when calculating the business operating budget. Because warehouse space leasing works differently than other types of commercial real estate leases, prices can vary widely. It’s necessary to have a good sense of your own needs to understand how third-party logistics warehousing firms determine their rates.
Most businesses don’t need an entire warehouse dedicated to their operations. That’s why many opt for a third-party warehousing and distribution service. On Time Delivery & Warehouse aims to make the terms of our Cleveland warehouse lease rates as fair and transparent as possible – so you can be confident you’re getting the best rate for the space and value-added services you require.
This is especially important given the warehouse market insight recently published in the Journal of Commerce Annual Review and Outlook. Industry analysts opine warehouse lease rates are likely to continue climbing through 2020, with the average rent increase for industrial properties nationally expected to exceed 5 percent for the fifth year in a row.
Analyzing Your Company’s Warehouse Needs
To begin your search for the best warehouse rates in Northeast Ohio, we recommend starting with an accounting of your own business needs. This will help establish a general price range and give our 3PL team an idea of which warehouse package is best for you.
Some top warehouse service demands include:
- Climate control. Depending on the goods you’re having stored and distributed from the site, you will want a clear understanding the 3PL warehouse’s existing HVAC capabilities for heating and cooling. You also want some assurance that the warehouse owner/manager is keeping that equipment in good repair.
- Sufficient electricity. Your storage needs may necessitate substantial amounts of electricity. Be certain your warehouse provider has the capacity for it.
- Floor load and flatness. The strength and smoothness of a warehouse floor might dictate how much weight it can hold – and how safely/effectively your items can be moved around.
- Door type and quantity. If you need a warehouse with distribution capabilities, the facility will need adequate ingress/egress capabilities. The On Time Delivery & Warehouse 3PL facility in Middleburg Heights has 17 doors for loading and unloading. The size of doors matters because, for instance, dock-high doors will allow for semi-truck loading directly from the warehouse floor, while grade-level doors work better for loading/unloading from a cube truck or with forklifts.
- Security. Inquire about security measures to ensure your investments will be protected.
- Location. Logistics companies recognize that in choosing a location, there must be a careful balance of costs between transportation, real estate and labor. Rental rates and labor costs might be lower in areas slightly outside the urban core, but transportation costs from there could be slightly higher. Some final-mile customers might consider it a worthy trade to pay a bit more for urban warehouse rents in order to reduce their transportation costs. It comes down to your individual needs.
- Additional services. Before signing any Cleveland warehouse lease, know that a good warehouse can offer you a lot more than empty space. Inquire about inventory management, receipt of orders, customs bonding, kitting, distribution and fulfillment, block and brace services, truck scales and more.
If you are uncertain about the cost-benefit of some of these aspects, our professional third-party logistics and warehousing team can help in your appraisal.
Keep in mind that the three main elements included in warehouse leasing are base rent, property taxes and insurance and common area maintenance. Because warehouse space and services can be a considerable operating expense, it’s important for business owners to know exactly what they need – and gain assurance that the warehouse can offer it – before signing a lease agreement.
If you have questions about our Cleveland warehousing options or are interested in a quick turnaround Cleveland warehouse lease rate quote, contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
ARO 2020: US warehouse lease rates set to keep rising, Dec. 30, 2019, By Bill Mongelluzzo, JOC.com
More Blog Entries:
Secrets of Successful Cleveland Warehousing, Oct. 20, 2019, On Time Delivery & Warehouse Blog