How to Choose a Warehouse Size for Your Company

Selecting the best warehouse space for your company is key to optimizing your business strategy. Having the right warehouse space is crucial for the supply chain. Whether receiving, storing or shipping items, you need a reliable space to optimize your operations and keep your items secure.

Size is one of the most significant considerations for selecting the most suitable warehouse for your business. The right size will enable you to streamline operations and accommodate for growth to ultimately save costs and optimize logistics.

What Is the Typical Warehouse Size?

Typical warehouse dimensions differ greatly based on several factors, including location, inventory type, industry and operational processes. Various sectors leverage warehouses, contributing to a wide range of sizes and configurations available.

Data from the U.S. Energy Information Administration (EIA) shows that warehouses take up approximately 17.4 billion square feet of total floor space in the United States — demonstrating the demand for and diversity of these facilities.

Why Choosing the Right Warehouse Size Is Important

Choosing a warehouse that suits your logistical needs is vital for several reasons. Your business will waste money if you select a space that is too large. On the other hand, having a warehouse that is too small is just as problematic.

Inadequate square footage can cause operational inefficiencies or unsafe storage techniques. You could risk inventory damage or accidents and injuries. Additionally, a too-small warehouse space can become overcrowded and look unsightly.

Cost-wise, small warehouse space can hinder your fulfillment requirements and prevent you from scaling up.

What to Consider When Choosing a Warehouse Size

Warehouses can be as diverse as the industries that rely on them. Choosing the right space for your company will depend on several factors.

Current Inventory Size

One of the most significant factors impacting the right warehouse size is your business's inventory. You need a space that fits your items and staffing requirements.

Calculating your needed warehouse space can be more intricate depending on your business type, the products you house and the equipment you utilize. For example, some fragile or uniquely shaped items cannot be stacked, while other products can be stacked several pallets high.

You can use online software to get an approximate figure of how many square feet of warehouse space your company requires. These calculators usually take your pallet length and width, your number of pallets, the stacking height and a warehouse utilization ratio.

The warehouse utilization ratio simply explains how much storage space you have available.

Expansion Rate

If your data shows a growth trend, it is crucial to choose a warehouse to accommodate future expansion. You will need a space that can meet your current inventory requirements and your growing needs without placing strain on your existing model.

While it's important to find an option that can meet your projected growth, starting off too big too quickly can cut into your budget and impact the efficiency of your business.  

Product Size and Type

Most warehouses can accommodate a diverse range of items, but your product size, shape and type will directly impact which space is right for your company.

If you have products that cannot be stacked on top of each other, you may need to find a bigger space to help you manage your inventory and unique storage needs.

You must also assess inventory levels and turnover rates for each item. Your business needs a strategic amount of stock to combat stockouts without dealing with excess goods that can be expensive to store.

Consider other factors that directly impact inventory management, like seasonal demand. You will need a space that can accommodate fluctuations and provide the right type of storage environment. For example, temperature-sensitive products may need specialized equipment, and you must account for additional square footage for these solutions.

Cost Considerations

Warehouse costs and your business's budget are critical considerations.

When researching potential spaces, seek warehouses that offer flexibility, provide competitive pricing and will help you get the most out of your investment.

Renting can be a financially advantageous solution. Some companies allow you to opt in or out for different resources and amenities to help you stick to your budget. As your needs change, renting can help you adjust accordingly.

A warehouse with all-inclusive amenities is a cost-effective option that also provides you with the following benefits:

• Lower operational costs: The primary financial benefit of renting a reliable warehouse is that the space already has the business amenities included, helping you lower operational costs. You won't have to worry about overheads and the expenses of warehouse software and equipment, as this will all be factored into your bill.
• Easy access to vital resources: When you rent a good warehouse space, you get easier access to vital resources to help your business grow. You will have advanced technology, equipment and solutions, including inventory management and tracking software, tools for automating orders and additional business support.
• Cost-effective avenue for growth: Renting a warehouse space is a cost-effective excellent avenue for growing businesses, as you won't have to worry about physically expanding your facilities when you grow. You will not need to invest in additional infrastructure, equipment, personnel property taxes or insurance — you can simply rent out more space as you expand.
• Optimized space: Whether you are a new or established business, it can often be complicated to find the right size warehouse for optimizing your operations and keeping costs down. When renting a space, you can constantly evaluate these needs and adjust your licensing agreement accordingly.

Discover the Right Warehouse Size for Your Business With Portal Warehousing

Understanding warehouse sizes and finding the right space to meet your business needs can be transformative for your company. You can streamline your operations and run your business more efficiently and cost-effectively.

At Portal Warehousing, we provide businesses with high-quality small warehouse spaces for rent with all-inclusive amenities that help your business operate and grow. You can choose from a variety of sizes available to fit your business, ranging from 200 to over 2,000 square feet. Utility, security and fast internet are included in your warehouse rental and easy billing.

You can enjoy additional amenities and options, such as private offices, reception services, technology partnerships, daily carrier pickups, loading docks and equipment, a shipping/ receiving address and growth support. We also have community events that can help you connect with like-minded professionals.

Our facilities are ideal for launching new businesses and expanding existing enterprises. We make our rentals flexible and commitment-free, starting with a minimum 3-month license agreement that can then be extended to month-to-month or even yearly. Book a tour online to visit one of our spaces near you.

‍