When your business needs more space, you may consider buying a warehouse. Here’s what you should know before making this important purchase.
Expanding your business is an exciting but stressful time. You need more space, and one way you can easily add square footage to your business is by purchasing a warehouse. Warehouses are versatile, and you can use them for everything from simple storage to processing. However, this is a large, important purchase, and there are things you should know before making it. Keep reading to learn more about what you should know before purchasing a warehouse.
Flexibility and the Future
As we mentioned above, warehouses are versatile spaces. With the right equipment and minor renovations, you can convert an empty warehouse into any type of facility you want. The only thing that isn’t flexible about warehouses is their square footage. Once you purchase a warehouse of a certain size, you have that much square footage forever. That’s often good news when your business is consistently expanding, but the economy is unpredictable. You must ask yourself whether you can sustain the size of the warehouse even if your business stops growing or shrinks.
No matter what kind of warehouse you create, it will need staff. If you want to keep a consistent, hardworking staff, then you need to make the warehouse comfortable for them. Older warehouses may not have the infrastructure in place to create a climate-controlled environment or provide other comforts. You can either move on and consider a newer warehouse that has the comforts you want or modify an older warehouse. Making these changes will take time and money, but you’ll also have the opportunity to customize the space, which many businesses like.
Before you get lost planning for future business changes and staff, consider the bare bones of the warehouse. Is it structurally sound? What’s the environment like? Is there any asbestos you’ll need to remove? If a real estate agent is confidently selling this property, then chances are it is structurally sound. Investigate the environment and ask questions about potential asbestos. There’s a lot of information you need to know about asbestos removal, and if you don’t have the budget to hire removal experts, then this isn’t the right warehouse for you.
Before purchasing a warehouse, you must consider both the state of the warehouse itself and how it will accommodate the future of your business. There’s a lot we can’t know about the future, but what you need to know before your purchase is a realistic estimate of where your business is going. Consult with an economic advisor to determine whether growing into a warehouse of a specific size is the right move for your business.