Consider the Benefits of Owning a Warehouse
If your manufacturing or distribution business has outgrown your current space, you’ve likely done a few web searches for warehouses for sale in the Cincinnati vicinity—warehouses typically exist in industrial-zoned areas and can be a big help at managing your product. With a population growth rate of roughly 5.6% in the past decade, businesses wanting to grow their following in the Cincinnati area are feeling more optimistic about doing so. However, there always remains the question of whether you should buy or lease a property.
While leasing is a good way to mitigate upfront costs associated with buying an industrial building around Cincinnati, there are a number of reasons why it might be a good move to buy or build a warehouse, as opposed to leasing. The value of your property increases over time, and you might have the opportunity to rent out space yourself— but more on that later.
The biggest needs we hear when companies are looking to purchase a warehouse space naturally have to do with storage. Warehouse spaces allow you to expand your inventory of goods drastically, having them always at the ready for your customers. A retailer, for example, can store slower-moving items in a warehouse, freeing up in-store space for products that are selling more briskly.
Small businesses, in particular, can also take advantage of warehouse space. If your small retail business in Cincinnati has expanded, you’ll have more storefronts to supply, but smaller square-footage buildings don’t always come with the premium storage space of a big box store—that’s where warehouses come in. With a dedicated storage space, warehouses alleviate much of the burden that smaller spaces can face and allow for a surplus of goods to be readily available when restocks on products are needed.
A warehouse can also serve as an alternative to a brick-and-mortar store site, on the Amazon model; in 2019, the U.S. Commerce Dept. reported that for the first time, the total market share of online U.S. retail sales was higher than that of general merchandise sales. As much as online business owners wish it weren’t true sometimes, those online items still need to take up physical space. Warehouses give you that dedicated space to easily categorize and organize your inventory, allowing you to see what you do have to offer customers. The commercial goods and services market is changing on a large scale, and that’s definitely something to consider when browsing available commercial or industrial real estate for your new warehouse.
Investment Property or Company Expansion?
Owning warehouse space can provide the room you need for your business to grow, and the same building can double as both inventory storage and office or production space—that’s one of the benefits of owning; you’re in full control of what you get to do with your space. If you invest in one of the larger industrial spaces in the Cincinnati area, and you only currently find yourself utilizing half of it for storage, that other half could easily be used as office space for your workers or some other means.
Similarly, if you’re not using all the space, some of it can be rented out to other businesses, or you can purchase a warehouse for the express purpose of renting it out to bring in more revenue. When you shop around for warehouses on the market in the Cincinnati locale, keep in mind that uptick in population growth over recent years. When you buy a property, it’s only going to increase in value over the years, and if you rent some or all of it out, you stand to make some of that money back that you used to purchase it with. Essentially, if you do need storage space for your own business, owning a warehouse can be cheaper than renting in the long run – especially if you also have other business tenants in the space.
In fact, purchasing a warehouse in today’s economy is a great investment. Warehouse space is in high demand with low vacancy rates. Demand for warehouses far outpaces supply, so property managers can charge higher rent, and locating tenants isn’t nearly as difficult as it can be for other types of industrial properties. Whether you want to invest in an existing warehouse you can acquire off the market, or do a speculative industrial build, the potential revenue outweighs the risk.
If We Can’t Find You the Right Warehouse, We Can Build to Suit
The Schueler Group’s extensive property listings in Southwest Ohio and Northern Kentucky often include warehouse and warehouse/office properties for sale or lease among many others, and we always keep the listings on our website up-to-date.
As one of the best real estate companies in Cincinnati for vertically integrated construction and development, we’re also fully capable of building your dream space. Our long experience in designing and building commercial facilities also includes warehouse projects, such as the 30,000-square-foot office/warehouse and light assembly building we completed in 2020 for the Melink Corporation in Cincinnati—truly a testament to the capability of The Schueler Group when it comes to both helping businesses expand and grow their services in the greater Cincinnati-Dayton area. For those looking to learn more about our role in bringing Melink’s zero energy warehouse space to life, take a look at this YouTube video.
Whether you want to lease, buy or build, we’ll help fill your warehousing needs with our comprehensive services—our company motto isn’t “get up, go to work, and take care of the customer” for nothing.
Check out one of our warehouse builds that required our commercial construction company to come up with some creative ideas for sustainable construction in order to create a zero-energy industrial property.