Hey, welcome back! 

Did you know that the average small e-commerce business needs between 500-1,500 square feet of warehouse space? Sounds all cool until you realize industrial real estate data reports less than 5% of available warehouse inventory falls below 2,000 square feet, with most spaces starting at 5,000+ square feet. That means you're stuck paying for twice the space you actually need.

Between your bedroom doubling as inventory storage and that $10,000/month warehouse that's way too big for your needs, there's a solution that makes actual sense for your business — and we’re unpacking it all in this week’s issue of Outside the Box.

📦 Stop paying for empty space with the TRUE COST method

🏢 48% of Customers Say, “Just Tell Me Why It Costs More”

🔑 Everything you need from van to headquarters

📣 What's your warehouse struggle?

Stop Overpaying for Warehouse Space with the T.R.U.E. C.O.S.T. Method

Ever tried finding a small warehouse under 2,000 square feet? If so, you've probably noticed something bizarre: the calls that never get returned, the spaces that don't exist, and the leases seemingly written in ancient Sumerian.

There's a reason for that.

"Smaller tenants? No one cares about them," says our WareSpace CEO and Co-Founder Levi Cohen. "You're not gonna negotiate. They're gonna basically say, take it or leave it. And here's the keys. Good luck." To put it frankly, the system wasn't built for businesses like yours.

This creates a painful choice many business owners know too well: either sign a lease for way more space than you need (and pray your business grows into it), or keep running your operation out of your garage while your spouse plots to "accidentally" donate your inventory to Goodwill.

Neither option works. 

That's why savvy business owners are ditching square footage as their only metric and instead using something much more powerful — what Levi developed as the "TRUE COST method":

T — Time: How much of your day will be spent managing facilities instead of growing your business?

R — Renovations: What upfront expenses will make the space usable? One WareSpace tenant nearly signed a lease requiring $35,000 in renovations before she could move in.

U — Uncertainty: What's your exposure to unexpected expenses? "If you don't have clarity on what the bill is at the end of the year...you never know until they reconcile everything."

E — Escalation: How will costs increase over time through annual increases and reconciliations?

C — Commitments: What long-term obligations and personal guarantees are you making? "Are you okay if the landlord has a contractual right to come and collect a hundred thousand dollars from you if your business goes south?"

O — Operations: How easy is day-to-day business? "You have a rent bill. You have a CAM bill. You have to pay all your vendors, utility guys, internet. It just really has to get set up also."

S — Safety: Is this an environment where you, your employees, and your clients feel comfortable?

T — Transition: Can your space grow with your business? "Do you know where your business is going to be in 3 to 5 years? If you need double or triple the space, you're not going to get out of this lease."

The TRUE COST method reveals why seemingly cheaper options often cost more in the long run. What small businesses actually need is flexibility to scale, predictable monthly costs, and a professional environment – not surprise expenses and personal guarantees on multi-year leases.

Tired of getting screwed over by landlords and their 75-page leases? Read the full playbook to save your small business here.

• HVAC Business Heating Up — Despite higher interest rates giving homeowners second thoughts, the HVAC and plumbing service sector is showing promising signs. With the average American home now over 40 years old and consumers' financial position improving through 2025, contractors should see repair and remodel work pick up steam. Economists predict that the second half of the year is going to be better than the first half, advising contractors to use these quieter months to differentiate themselves through social media and efficiency improvements. Your summer schedule will thank you.

• Price Hikes? Just Explain Why — Nearly half of consumers (48%) want brands to fully explain price increases, including factors like tariffs and supply chain issues. The transparency pays off: customers are more likely to stay loyal when they understand why costs are rising. Even more interesting here is that age matters. Americans 55-64 are most likely to track the impact of tariffs (51%), while only 36% of those 18-24 pay attention to these details. The one golden takeaway here is simple: clear pricing communication isn't just nice. It's essential for customer retention.
  
  

• Warehouse Market Heating Up (Yes, Really) — In case you need more proof: Industrial real estate just had its best quarter since mid-last year with a massive 123.3 million square feet of leasing activity. But here's what nobody's talking about: developers are pumping the brakes HARD on new construction. The development pipeline shrank nearly 30% compared to last year, hitting its lowest point since 2015. With 86.7% of that pipeline delivering this year, the already fierce competition for right-sized spaces is about to get even more intense. Don't wait until you're desperate to make your move.

From Van to Headquarters

Tired of garage Tetris and storage units that won't accept deliveries? WareSpace gives contractors secure, climate-controlled spaces where you can receive materials, organize inventory by job, and scale seasonally, without personal guarantees, maintenance headaches, or unsafe facilities risking your expensive inventory and equipment. See all our solutions for contractors and home service providers.

Fill in the blank:

The most frustrating part about my current workspace/warehouse space is ____________.

Reply to this email and let us know – we might feature your response in our next newsletter!

…and that’s a wrap for this week’s Outside the Box! 

If there’s one thing to remember in this issue (besides the TRUE COST method, of course), it’s this: When you shift from traditional leasing to short-term leases, your warehouse space transforms from a burden into a business enabler. Smart small business owners are finding solutions that work for them — not just in terms of space, but in terms of enabling their growth and success. 

But are you ready to join them?

Find a warehouse space that actually works for your business.

Book a 15-min tour at one of our locations and see the difference for yourself. No pressure, no complicated paperwork – just solutions designed for businesses like yours. BOOK A TOUR →