Did you know that about 50% of small businesses in the U.S. are home-based, often starting from living rooms, garages, or even kitchen tables?

Yup. That's about 16.2 million entrepreneurs balancing inventory on bookshelves and shipping orders while trying not to wake the kids. We’ve all been there. 

There's something magical about building a business from your home—until there isn't. But when success means you can't see your kitchen counter anymore or your garage hasn't housed a car in years, it might be time for a change.

But the good news is that growing pains is a sign that you’re doing something right. 

…and lucky for you, this week’s issue is all about what comes next when you outgrow those four walls.

📦 CEO Levi Cohen's 4-point checklist for upgrading from home to warehouse space

🏢 Why small warehouses are having a big moment in 2025 

🔑 Everything you need to scale your e-commerce business

📣 What's forcing you out of your home office?

BEFORE YOU SIGN: WareSpace CEO Levi Cohen's 4-Point Lease Checklist 

That exciting moment when your business is ready for its first warehouse can quickly turn into a nightmare if you don't know what you're signing. Our CEO Levi Cohen spent years in commercial real estate before founding a company dedicated to solving these exact problems.

"Most small business owners focus only on the base rent figure," Cohen says. "That's just the beginning of what you'll actually pay."

Before signing anything, follow Cohen's 4-point checklist:

1. Map out all responsibilities
   Create a comprehensive list of who handles what—from HVAC maintenance to roof repairs. Cohen advises that for every single system in the building, know exactly who pays when something breaks. Those repair costs can quickly exceed your monthly rent if you're not careful.
2. Inspect everything thoroughly
   Never trust that equipment "works fine" without verification. That 5-year-old HVAC unit? Get it inspected and understand what happens if it fails next month. A $20,000 emergency replacement could devastate your cash flow.
3. Understand personal guarantees
   Most traditional leases require you to personally guarantee payment—putting your personal finances at risk if your business struggles. "If your business goes south, the landlord has a contractual right to collect from you personally," Cohen warns. So, try to negotiate limits or "burn down" guarantees that decrease over time.
4. Build in flexibility
   The businesses that scale most efficiently treat warehouse space as a tool that should adapt to their needs—not the other way around. And trust us, business needs change faster than you expect. “Do you know where your business will be in 3-5 years?” Cohen warns. “Because if you need to triple the space, you're not getting out of this lease.” Push for shorter initial terms, renewal options, and sublease rights. That way you can make business decisions based on opportunity rather than space constraints.

Understanding these points before signing helps you avoid surprises that threaten your business while maintaining the flexibility to grow on your own terms.

Don't get trapped in a bad lease. Check out Cohen’s full 4-point warehouse leasing playbook or book a 15-minute tour to see firsthand how other businesses are breaking free from these traditional leasing pitfalls.

• The Playbook To Hiring Your First Employees – Who you hire as your first employees is one of the most impactful decisions you’ll make as a business owner. You’re likely going to spend more time with these people than your family (for better or worse). Mother Plumbing (a WareSpace tenant) has grown from just a guy in a truck, to 7 full-time plumbers in less than 6 months. Founder Dustin Marx shares his top 4 tips for how to make sure you hire the right people early on. Hint: dinners with spouses—because the green light often comes from home.
  
  
• E-Commerce Keeps Eating Everything — E-commerce hit $1.19 TRILLION in sales last year, jumping 8% while regular retail barely grew at 3.4%. Here's what nobody's telling you: Online sellers need THREE TIMES more warehouse space per sales dollar than brick-and-mortar stores. The big players know it, Amazon's reportedly exploring a $15 billion expansion across dozens of facilities. But even these expansion plans are on pause while everyone figures out what's happening with tariffs. If there’s one takeaway here, it’s this: the hunger for right-sized warehouse space isn't going anywhere, but if you wait until the big guys make their move, you might find yourself with zero options.
  
  
• Small Warehouse Spaces in High Demand — Traditional warehouses are sweating bullets right now. That’s because all the action is happening in smaller spaces. A broker in Arkansas says 10,000 to 20,000 square foot spaces are where the demand is, while those massive distribution centers sit empty. Rents for these smaller flex spaces have shot up 61% since 2019. Translation: act fast if you're looking.

That Home Office Takeover Stops Here

The classic signs: inventory taking over your living room, family members recruited as reluctant packers, and those awkward moments when delivery drivers knock during Zoom calls. Our flexible spaces with zero surprise fees and 24/7 access let you be a real business without the real estate headaches. Get back to that feeling with a space built for what you actually need—loading docks, security, and room to breathe—without long-term commitments. See all our e-commerce solutions here.

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“If I had a dollar for every time I heard a vendor I work with say…”

Respond by replying directly to this email. 

Until next time, stop letting warehouse worries hold you back. Whether you're drowning in cardboard boxes at home or sweating through a bad lease, there's a better way to house your business. Hit us up with questions, and don't forget to respond with your fill in the blank—we're listening!

Your business reached this point because you're doing something right. Don't let space constraints become the thing that holds you back. See how WareSpace is helping entrepreneurs just like you focus on growth, not cardboard box management.