4 great benefits of using a co-warehousing space

Using a co-warehousing space is an increasingly popular choice among startups and smaller businesses that are not big enough to rent an entire warehouse.
Serviap Logistics 4 great benefits of using a co-warehousing space

An emerging trend in co-working is the use of a co-warehousing space, which has seen increasing uptake over recent years, especially as the e-commerce market has grown.

A co-warehousing space is effectively a warehouse divided into smaller sections that businesses can rent out.

Renting a co-warehousing space provides startups and other companies that have limited-scale production or distribution needs with an area that suits their requirements, as well as offering many of the additional benefits of more conventional office-based co-working arrangements.

Such benefits include networking opportunities, communal areas, and refreshments, as well as the availability of conference rooms and desk working space.

SEE ALSO: 5 important warehouse safety barriers to improve operational safety

The rise in companies using a co-warehousing space has seen it be identified as “the next big thing” in co-working, and the trend has reportedly seen significant uptake in the industrial sector.

It has also benefited from a significant growth in the e-commerce sector, which in 2021 saw $870 billion in online retail sales in the United States alone – a more than 50% increase on 2019, prior to the COVID-19 pandemic (all figures in USD).

The growth of co-warehousing, meanwhile, has opened up new opportunities for providers, with US-based ReadySpaces raising an additional $20 million in debt in late-2022, which the company said would be used to fuel growth, having already set up 32 co-warehousing spaces.

For anyone working in e-commerce, or producing goods at a scale that only demands a limited area, renting a co-warehousing space could be an ideal option.

Below, four key benefits of using a co-warehousing space are considered.

Serviap Logistics works with clients in Brazil, Mexico, and the United States to improve their warehouse operations, supporting setups, refits, and relocations. We provide and install racking, signage, collision protection, labels, and floor marking, among other things.

Contact us today to find out more.

4 benefits of a co-warehousing space

1) Adequate space

One of the key benefits of a co-warehousing space is that it provides the user with a production or distribution space that suits their needs. Because a full-sized warehouse will usually consist of at least 5,000 square feet (465 square meters), which for many businesses is simply too much.

For startups or smaller businesses, renting a part of a warehouse is more than sufficient for them to undertake all of their activities, while there is always the opportunity to rent an additional area in a co-warehousing space when the business grows.

Of course, that will depend on availability. However, the ability to increase or decrease the area being rented is just one way in which a co-warehousing space offers users flexibility.

2) Flexible contracts

Traditionally warehouses are rented out in their entirety and usually for periods of at least five years. That would previously relegate many startups and smaller businesses that needed production or logistical space to work out of the likes of garages and storage areas, or to negotiate the use of a small part of the warehouse of another business.

However, renting a co-warehousing space is much more flexible, with rental periods tending to be significantly shorter. That makes it ideal for smaller operations, especially those that envisage growth that will see them require more space within a few months or years.

It also means that smaller businesses can set up in a space intended for their use, but without the risk involved in signing a long-term contract or ending up with far more space than they can use

3) Cost effectiveness

While the cost of a co-warehousing space per square foot / meter is going to be higher than renting out an entire warehouse, it will still work out to be cheaper overall because the user is only renting out a small portion of the space.

As well as creating savings in rent, it will also result in other savings, such as utilities, which will be a source of waste for a business renting out a space that is far larger than their needs require.

Other additional costs associated with renting an entire warehouse – such as out of hours security — will also be reduced and rolled into the rental price, rather than being additional.

4) Additional perks

As previously mentioned, another key benefit of using a co-warehousing space is the additional perks that come with it, akin to those found in office-based coworking spaces.

They include the likes of communal areas, refreshments, networking events, opportunities to share resources with other co-warehousing users, and the availability of conference rooms for holding meetings and receiving guests.

Other additional features may include the likes of facilities and equipment for taking product photos and the availability of shared loading docks and personnel to help with the movement of goods.

Stock image of a co-working communal area to highlight the fact that often a co-warehousing space will include these areas.
Often a co-warehousing space will include communal areas and meeting rooms

Serviap Logistics offers superior warehouse setup

At Serviap Logistics, we provide and install warehouse features in Brazil, Mexico, and the United States.

Those include racking, signage, labels, floor marking, and collision protection. We also offer project management services, and can oversee your warehouse setup, refit, or relocation from start to finish.

We count some of the world’s biggest companies among our satisfied clients and partners, covering a wide range of sectors, including automotive, e-commerce, and wholesale, among others.

As a family-run company that has grown internationally after starting out in Mexico, we are committed to service excellence and pride ourselves in providing a personalized service to every client.

We are also dedicated to upholding the highest safety standards wherever we work, including being OSHA certified in the United States.

Contact us today to find out more about how we can assist you with your warehouse setup.

If you were interested in this article on the benefits of using a co-warehousing space, check out the rest of our coverage.

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