Find Your Next Warehouse Space With Less Hassle

On the other side, distribution space is used for the purpose of getting product in and back out. In other words, distribution centers are constantly moving. Product is coming and going and is not regularly sitting for very long. 

Distribution centers are essentially a landing place for products and are used for the flow of goods. Here, orders are often assembled, packed, shipped, and fulfilled, and then moved along to customers.

Examples of businesses that use distribution real estate include retailers such as Walmart, Costco, and Lowe’s.

Typical warehouse buildings are going to be around 20,000 square feet or more. In general, they are larger than flex space buildings. 

Distribution buildings also tend to be taller than other industrial spaces, providing higher clear heights with modern sprinklers. The whole idea with these buildings is to maximize cubic square footage. 

For warehouses, high ceilings aren’t usually as important, so warehouses tend to be older and not as tall as distribution buildings.

It’s important to check into both indoor and outdoor loading capabilities before closing on a warehouse. Indoors, warehouses racking systems can range from 8′-24′, with newer buildings typically providing higher clear heights.

Warehouses also have different floor load capacities, which designate the amount of weight an area of floor can safely support. This is usually measured in pounds per square foot (psf). In most warehouses, 125 psf is common for light warehousing, while 250 psf is generally required for heavy manufacturing storage warehouses. Floor load capacities vary based on a number of factors, including floor material thickness, room dimensions, and the type of load it will bear (static or dynamic).

Within each warehouse you’ll also find different loading dock options, including both the height and amount of docks. 48″-52″ is fairly standard in the U.S., but this can also vary.

Within each business, the need for different clear heights, floor load capacities, loading dock options, indoor equipment storage, and parking lot size will vary depending on transaction volumes, the type of products stored, and more.

What does security look like for warehouse properties?

Generally, these properties tend to have an exterior fence. They might also have barbed wire or razor wire on top to prevent intruders from scaling the fence.

Inside the fence, there’s typically security exterior lighting along with exterior cameras. Alarm systems are also standard.

The difference in parking spaces can be major when comparing warehouse real estate to distribution-oriented properties. 

Distribution properties are set up to have trucks constantly going in and out. This means that not only are you going to have a lot of dock doors, but you’ll also find heavy trailer parking and automotive parking. Some newer buildings have a trailer parking spot for every dock door on the building. In addition, there’s generally plenty of automotive parking to go along with it.

Since warehouse space naturally will not have nearly as many trucks going in and out, the parking requirements tend to be much lower for these properties. And not only is there probably minimal trailer parking, but usually, automotive parking isn’t as important either. 

Keep in mind, additionally, that warehouses don’t tend to have as many employees working as distribution facilities do, so there doesn’t need to be an excessive amount of employee parking in most cases.

Warehouse offices are different from traditional offices in that they’re typically more oriented to the specific functions of the building. Many warehouses have fairly limited office space, since the buildings are generally used more for storage than for day-to-day tasks. 

Unlike traditional new offices with creative spaces, private office suites, or collaboration hubs, warehouse offices are administrative areas that often have attached storage shelving areas for managing physical inventory, or are located close to production and distribution areas to make it easy for employees to move back and forth between tasks as needed. 

The specific office needs of a business may depend on the workload for administrative tasks, whether the company needs collaborative space for meetings, and the amount (if any) of shelving needed for sensitive items or data.

Typically, only a small percentage (~10% or less) of a warehouse building is used for office space.

In general, requirements for warehouse spaces tend to be a bit lower than for industrial space. This is largely because the number of people in the building is usually lower. Rather than having many people inside working forklifts and moving product around, some warehouses only have one person working. Often, they’re very low human occupancy buildings. 

This means that requirements such as heating, parking, power, and even amenities like bathrooms may all be less.

A specialized type of warehouse real estate are data centers, also called server buildings. This type of warehouse is a physical location, but instead of storing what you would think of as regular warehouse goods, it stores computer machinery and hardware. 

Near Charlotte, there are Apple and Google data centers in the Black Mountain area.

Data centers have special requirements. While they’re mostly gigantic buildings with very few people working inside, the data inside these buildings requires very special care. 

The types of features that these buildings require often include many solar panels, elevated floors for wiring, special fire extinguishers that will not damage the hardware, high-level security, and uninterrupted power supply. They’re also generally located in places where electricity is fairly inexpensive.

For businesses who transport numerous loads, the Charlotte Regional Intermodal Facility offers a brilliant solution for reliable, efficient transportation both nationally and internationally.

As industrial and warehouse transportation needs have increased among the greater Charlotte area, the Norfolk Southern Rail recognized the need to expand from its 40-acre location near the center of the city.

In 2014, the 200-acre Charlotte Regional Intermodal Facility was built just 5 miles away from Uptown and right next to the Charlotte Douglas International Airport. This new, larger terminal has provided unmatched solutions for industrial businesses across nearly every industry – from agriculture to automotive to government, and many more.

Operating across 22 states, the Norfolk Southern Rail connects 800 industrial sites, 175 warehouses, and 43 ports in its 19,500 total miles. The Norfolk Southern Rail’s commitment to sustainability and reliability has made its presence in metro Charlotte an invaluable resource for countless businesses.

While not every warehouse needs this transportation option, for those who do, properties in close proximity to the Airport neighborhood and the intermodal facility can be a significant boost to business success.

Warehouse space is available both for purchase and for lease. Every business is unique, and the decision to lease or buy is another important detail that we discuss with our clients as we search for the right warehouse space.

But how do you decide?

While warehouse leases are typically set for 5-10 years, buying warehouse spaces gives you long-term ownership, potentially providing more security for companies who don’t expect significant changes in the business or property use in the near future.

When you buy warehouse space, you have total jurisdiction over how to use the space. There’s no landlord in control, so any customizations that the business wants to make to the property are fair game.

In addition, you don’t have to worry about the landlord deciding to sell at the wrong time.

Perhaps the most important positive component of buying warehouse space includes the opportunity for the investment to appreciate over time. Although buying is certainly more of a long-term commitment, a sale agreement means that the business gets to enjoy tax benefits and build equity. Now, the building becomes a financial asset rather than simply a monthly expense.

Another positive element of owning your space is that you have full authority over how it’s used. If there are portions of unused space in the building, these could become rentable square feet that generate additional profit and allow for flexibility in regards to the company’s needs.

Of course, there are weighty cons of buying a space too – one of the greatest being that buying warehouse space requires significant capital upfront. In addition, you’ll be responsible for all of the maintenance, and it might be more difficult to move in the future if you need to expand or try out a different location.

The main benefit to leasing is that the initial cost is astronomically less. For many businesses, monthly lease payments are much more economical than buying a whole building. Leasing provides flexibility, an easier move if the location doesn’t work out, and usually, building maintenance is taken care of by the landlord.

Especially for smaller or newer businesses, leasing offers the flexibility needed to be able to operate efficiently. Lease length, location, and size of the building are not factors that companies have to lock into for an extended period of time when leasing a building as opposed to buying.

While leasing warehouse space isn’t a light decision, it certainly doesn’t require the same amount of long-term commitment as a building purchase.

Unfortunately, the cons of leasing are that you don’t have control over the price of the lease and whether it increases over time, you don’t build equity, and there may be limitations as to what you can do with the building and property.

All of these considerations are important to take into account when deciding whether you will lease or buy warehouse space.

No matter what lease structure you’re under, it’s important to have a thorough understanding of the fine print. The best way to do this is to have an experienced broker on your side who can help you negotiate to get the best deal possible, as well as to make sure you don’t run into any unwanted surprises a few months down the road. 

In addition to understanding the differences that come with each lease type, make sure you go over important lease clauses, including:

• The lease term and renewal options. Find out about lease termination options, too – just in case.
• Rent escalation. How often can the landlord increase the rental rate, and by what amount?
• Maintenance and repairs. ​Who’s responsible? Is there a tenant improvement allowance?
• Use clause and option to sublease. ​What activities are permitted on the property? Is subleasing all of part of the space an option, if necessary?

Default and termination. In addition to whether or not there’s a termination fee, find out what is outlined in the responsibilities of the landlord. Failure for the landlord to maintain the property adequately may also result in the opportunity for a tenant to be released from the lease agreement.

No matter what lease structure you’re under, it’s important to have a thorough understanding of the fine print. The best way to do this is to have an experienced broker on your side who can help you negotiate to get the best deal possible, as well as to make sure you don’t run into any unwanted surprises a few months down the road. 

In addition to understanding the differences that come with each lease type, make sure you go over important lease clauses, including:

• The lease term and renewal options. Find out about lease termination options, too – just in case.
• Rent escalation. How often can the landlord increase the rental rate, and by what amount?
• Maintenance and repairs. ​Who’s responsible? Is there a tenant improvement allowance?
• Use clause and option to sublease. ​What activities are permitted on the property? Is subleasing all of part of the space an option, if necessary?

Default and termination. In addition to whether or not there’s a termination fee, find out what is outlined in the responsibilities of the landlord. Failure for the landlord to maintain the property adequately may also result in the opportunity for a tenant to be released from the lease agreement.

As the economic climate continues to morph across business sectors, more warehouse spaces are focusing on trends such as green certifications, human-centric building designs, warehouse automation, and small-bay warehouses. These warehouse trends are promoting competitive lease options as tenants search for high quality commercial properties in the greater Charlotte area and beyond.

For warehouses and industrial space, sustainability and energy-efficient spaces are becoming more popular in Charlotte NC areas, across North America, and around the world. 

Warehouses minimize their environmental impact by installing more energy-efficient systems, using automatic lighting and climate control, reducing waste, capitalizing on renewable energy, streamlining inventory management, and using sustainable building materials, to name a few areas.

One significant way that modern warehouses promote sustainability is by focusing on lighting. One statistic found that heating and lighting makes up 76% of the power consumption in an average warehouse. One consequential way that newer warehouses are combatting this is by installing solar panels. Since most warehouses are single story and have huge roofs providing many square feet of space, solar panels can be quite effective, and can actually produce more power than the building even needs.

Currently, Silfab Solar Inc., a solar cell manufacturing facility, is in the midst of a local appeal to manufacture solar panels in Fort Mill, SC near Charlotte. 

Although solar panels aren’t widely accepted everywhere, they’re certainly gaining traction in the U.S. and around the world.

Younger retirement ages, an aging workforce, and increased unemployment benefits are just a few of the factors that are leading to a shrinking workforce. In the blue collar sectors especially, labor is in short supply. 

The U.S. Chamber of Commerce recently reported that there are 8 million job openings in the U.S., while we only have 6.8 million unemployed workers.

This labor shortage has been a major factor in the demand for increased amenities across many types of spaces – including warehouses. And despite increased automation in warehousing, there’s still a significant human element that demands laborers to fill the positions.

​This labor crisis has led to an increase in human-centric features and amenities in warehouses and other commercial property types. 

Some amenities that are becoming more popular in warehouse rental properties include:

• Electric vehicle charging stations
• Comfortable lounge and eating areas
• Yoga or gym facilities on site
• Reliable public WiFi
• Outdoor recreation areas

As automation options increase, warehouses are capitalizing on many mechanization options that increase productivity and profitability, cut down on labor-intensive tasks, promote warehouse safety, and overall contribute to streamlining the specific needs of the business.

According to Exotec, the global warehouse automation market is skyrocketing, and is expected to hit $30 billion by 2026.

Popular technologies across warehouse spaces include automated material handling equipment, automated guided vehicles, advanced mobile robots and drones, inventory management systems, integration of 5G, hefty security measures, and other distribution technology.

Automation in warehouses can improve storage solutions, transportation of goods, product retrieval, and other tasks, cutting down on manual labor and improving efficiency in the workplace.

While large industrial buildings have made up the majority of the warehouse sector for many years, recently, there’s been a push for small-bay warehouses – light industrial spaces that are generally under 100,000 sq ft. 

As the needs of the economy have shifted, small-bay warehouses are becoming highly sought-after by various business tenants including e-commerce companies, auto repair garages, tech startups, and other small businesses. 

In the local market of Charlotte, many older industrial buildings are being transformed into small-bay warehouses. High construction costs make it easier to convert older, available space into high-quality small bay buildings. In addition, these spaces are often located in urban locations that provide greater transportation options. Their excellent connectivity opportunities make them ideal for reaching more customers efficiently. 

While the urban, city-center areas of Charlotte are one of the top markets for these improved warehouse spaces, we’re also seeing a shift as these industrial options expand into more suburban locations a bit further outside of the metro area.

In recent years, we’ve seen a push for shared warehouses, especially in the wake of the e-commerce boom. Shared warehouses, or multi-client warehouses, are—as the name implies—warehouses that are shared by more than one business.

The main reason why companies are choosing shared warehouses is because of the cost savings of sharing rent with one or more other businesses. Many users find that they don’t need an entire building, and sharing space with other tenants is an incredibly effective way to slash expenses. In addition to lower rent and operational expenses, shared warehouses often offer more advanced technology, such as warehouse management systems, and additional services such as labeling, repackaging, and assembling. 

In addition to cost savings, shared warehouses can provide more flexibility for companies who have changing needs throughout the year. For example, holiday-oriented businesses or any companies that sell a significant amount of seasonal products may be able to take over more or less of the space as needed throughout the calendar year. 

Another benefit of shared warehouses is that they typically come set up and ready for use. This existing infrastructure makes it easy for businesses to get in and get right to work. Loading equipment, security systems, pallet-racking infrastructure, and meeting spaces are often ready to go. 

Lastly, shared warehouses generally have shorter lease terms, giving more flexibility to the changing needs of smaller companies. Instead of a typical 3-10-year lease, shared warehouses often offer 1-3-year leases instead. 

Shared warehouses are often used by startups, seasonal businesses, online retailers, and third-party logistics providers (3PLs).