The Warehouse Industry Is Stuck in 1985 (And What That Costs Your Business)
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…and we’re back! 

 

This time with a sobering stat: Did you know that less than 3% of available commercial properties in major metro areas are suitable for small businesses needing under 3,000 square feet?

That leaves millions of entrepreneurs caught in warehouse limbo — too big for the garage, too small for traditional industrial space, and facing an industry that operates like it's still 1985.

While you're busy building a 21st-century business with modern tech and agile operations, the commercial real estate world is still pushing the same rigid multi-year leases, opaque pricing, and complete lack of support they've offered for decades.

This might work fine for massive corporations with dedicated facility managers, but it's disastrous for small businesses where every hour and dollar counts.

Thankfully, there's a better way. Let's unpack.

Todays Invetory V2

📦 Square Footage is Dead: A new approach to warehouse space 

🏢 The three (bad) options most small businesses face 

🔑 All the amenities included in a WareSpace lease

📣 Your Turn: Tell us the craziest place you’ve stored inventory

Square Footage is Dead: The Small Business Blueprint for Warehouse Space That Works

Landlords at traditional warehouses have a serious blind spot when it comes to small businesses.

“Finding warehouse space under 3,000 square feet is virtually nonexistent in most markets,” explains WareSpace COO Joseph Ely. "When we searched Los Angeles — a metropolitan area of 20 million people — we found only 52 options available for small spaces."

Oof. In a city with approximately 350,000 small businesses that handle physical inventory, having just a few dozen suitable options creates an impossible situation.

For those who do find space, the experience is brutal. 

"When you rent a traditional commercial space, you're completely on your own—alone in a desert trying to figure everything out," Joseph adds. "You suddenly need to become an expert in Wi-Fi installation, dumpster service contracts, fire alarm inspections, security camera systems, and rekeying procedures."

Most entrepreneurs face three equally bad options:

  1. The DIY Approach: Stay in your garage/spare bedroom despite rapidly outgrowing it
  2. The Self-Storage Shuffle: Use storage units (that technically prohibit business operations)
  3. The Big Commitment: Sign a long-term lease for space that's 2-3x bigger than you need

Each option steals your most precious resource: time. 

"When you're running a business, your number one resource isn't capital—it's time," Joseph emphasizes. "There's always a way to access capital. But the one thing you can't replicate is your time."

The solution is to take a fundamentally different approach by finding a warehouse that offer:

  • Spaces designed for humans, not just boxes
  • All-inclusive pricing without hidden fees
  • Month-to-month flexibility
  • Built-in amenities from racking to internet
  • Community of similar businesses

There’s also proof that it works. Our data shows that 73% of tenants report business growth after moving to WareSpace since it’s spaces are designed around their actual needs.

Want the complete blueprint? Joseph shares his strategies for how to approach finding a spot that's just right for your business in our full playbook.

 

INDUSTRY PULSE v2
  • JP Morgan Chase: Industrial Sector Remains CRE's Darling — While office buildings sit empty and apartment developers overbuilt, warehouses keep crushing it with just 6.8% vacancy rates. But the real kicker is that if you need a small space, you're fighting for scraps in today's market.

  • Wall Street Journal: Small Warehouses Hard to Find — Half Price Books spent OVER A YEAR hunting for a tiny 6,000 sq ft warehouse with zero luck. Small spaces (under 100,000 sq ft) have a microscopic 3.9% vacancy rate, versus 10.1% for mega-warehouses. One expert called it "a tale of two markets.” What do we call it? Well, a nightmare for small business owners.

  • Cushman Wakefield: E-Commerce Driving Space Shortage — Only 8% of new warehouses built last year were small-business friendly (under 100,000 sq ft) — and we know why. It’s because developers make more money on massive distribution centers. This forces smart businesses to get creative with some splitting inventory across locations, others using glorified storage units while searching for real solutions.
Start Here_v2

New to the warehouse hunt? Here’s what to look for when shopping around:

What’s included in a WareSpace lease? Literally everything your business needs: Wi-Fi, climate control, 24/7 access, loading docks, conference rooms, security systems, utilities, maintenance, racking, and more—all for one predictable monthly payment. 

Your Turn

We want to hear from you! Fill in the blank and we'll share the most entertaining responses in our next issue:

"The most ridiculous place I've ever stored business inventory was _______"

Respond by replying directly to this email.

ConclusionV2

Well, that’s a wrap on this week’s Outside the Box! We’ll leave you with some sage wisdom: Finding the right warehouse space is about creating an environment where your business can thrive without wasting time on facility problems. At the end of the day, the right solution respects your time, supports your growth, and transforms your operations.

Ready to see warehouse space designed for actual small businesses?

Book a quick 15-minute tour at your nearest WareSpace location. No pressure, no sales pitch — just a straightforward look at what's possible when warehouse space is built for entrepreneurs, not corporations.

BOOK A TOUR NOW

WareSpace Corporate Headquarters, 10632 Little Patuxent Parkway, Suite 306, Columbia, MD 21044

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