When on the hunt for the right warehouse unit, there are many factors to take into account before agreeing to a lease. It’s crucial to think back to your business plan and ask the right questions:

• How far away are your customers? 
• What are your future plans? 
• How much space do you need? 
• What facilities will staff want on hand?

In our experience, taking the time to make sure that a warehouse really fits the needs of your business almost always saves time and money further down the line. Whether it’s your first time renting a commercial warehouse or you’ve experienced issues in the past and want to make sure you’re doing everything right, Mileway is here to help. Here’s our selection criteria checklist to help you make sure you’re choosing the best warehouse for your business.

1. Choosing a great warehouse location

Location is key for any business unit, whether your priorities are to do with storage, logistics, fulfilment or anything else. The materials, tools, talent, and customers you have in mind will need to be accessible – time is money, and too much distance can remove your competitive edge.

This has certainly become the case with ‘last-mile’ warehouses. In e-commerce, the ‘Amazon effect’ has created a culture where consumers expect deliveries to be as quick as possible. These ‘picking warehouses’ are becoming more common, with rows of stock constantly rushing in and out to meet customer demands.  

Businesses are having to say goodbye to three-working-day delivery times and hello to store-to-door within minutes. This has created a boom in demand for last-mile properties: units in urban or suburban areas within easy reach of consumers.

If you need a space for manufacturing, you’ll also want to ensure your warehouse is conveniently located next to major transport hubs. This will let you access the goods and materials you need.

So, before renting your industrial unit, think back to your business plan and ask:

• Will you be selling goods in the UK or internationally? You may need access to ports, airports, or freight lines.
• How will you distribute your goods? Consider third-party delivery services, local roads, motorways, and other transport routes.
• How will your team get to work? Make sure your warehouse is easily accessible. Check if there are car parking spaces, look into public transport options, and consider local amenities for employees to enjoy. In most cases, having dedicated car parking spaces will give your employees the most flexibility.
• Do you need to be based in an urban area like London? Explore other regions in the UK and you may find great opportunities for less.

2. Sufficient storage

It should go without saying that you will need a clear plan for how much storage space your new warehouse will need. Be sure to have clear figures in mind for:

• Any current stock
• Machinery, vehicles, and equipment
• Employee break areas, amenities, and other facilities
• Outdoor storage
• Onloading/offloading vehicles

Typically, the size of a warehouse is measured by the overall square footage of its floor space. Stacking your stock to the ceiling is a good hack for making do with less room, though this also means making space for ladders and forklifts, as well as staff trained to operate them. There may also be separate external warehouse storage facilities.

Another aspect to think about is future warehouse space. Look back at your business plan – are you likely to expand in the next year or so? Factoring extra room into your space considerations can prevent you from having to move again too quickly and let you commit to a longer lease.

It will also be worth considering seasonal fluctuations in your market, as there can be varying extremes in how much stock you’ll be storing at any one time. You may want to ask about temporary extra space to help you meet higher demand during seasonal peaks.

Property providers like Mileway are happy to discuss growth opportunities. Your landlord may even be willing to help you relocate before the end of your lease.

3. Easy access and transport links

Next up on the list is thinking about how your employees, or any fleets of vehicles, will access your warehouse space. Many of our customers need vehicle space for deliveries and unloading, as well as motorway access for efficient delivery. All this helps optimise the efficiency of warehouse operations and prevent delays in making deliveries.

Ask yourself:

• Can vehicles drive directly up to the warehouse? Check permit requirements and accessible areas for larger vehicles like lorries.
• How many access points are there? Are they secure?
• Is there enough room for large lorries to turn around? 
• If you need to distribute large quantities of goods, are there sufficient facilities for loading and unloading? 
• Are there enough loading doors and bays? Are they tall enough for your vehicles?
• Do you need a parking area? If you run a smaller operation, loading doors might not be necessary, but you’ll want to know that there are enough parking spaces for everyone in your team. 
• Do you require charging stations? If you have electric vehicles (EVs), it’s worth asking a property manager if charging stations are available or if they can be added.
• Will any vehicles require secure overnight parking?
• Are only stairs available, or is there access for disabled visitors and staff?

4. Warehouse facilities and extra features

Now it’s time to think about how your choice of warehouse will impact staff efficiency and wellbeing. What features will your employees need?

• Office space
• Wifi
• Heating, lighting, water and cooling
• Washrooms
• Eating areas

With workplace innovations like chill-out zones and social spaces becoming more widespread, investing in morale-boosting space can be a major factor in staff recruitment and brand differentiation.

Other key features can include:

Warehouse equipment – For commercial warehouse leases, the ‘fit-out’, as it’s called, is normally the responsibility of the business renting the property. However, certain equipment may benefit from preexisting warehouse features like height, position of loading doors, and so on.

Security – Another essential feature is the security coverage of the wider estate, as well as the location in general. Sometimes, warehouses may be equipped with CCTV, perimeter fencing, and security alarms, or even have security guards or gated access as part of the service charge for the estate.

Sustainability – Finally, consider energy efficiency and sustainability features. For example, a landlord may have invested in things like Light Emitting Diodes (LED), solar photovoltaic panels, and EV charging stations. These could significantly reduce the energy consumption of your warehouse, helping you save money on energy bills.

5. Lease terms that work now, and in the future

Last but not least, think about how long you want your warehouse’s lease to last. The optimal amount of time will depend on how you see your business growing. If you’re predicting a rapid expansion, then you’ll want a shorter lease for the sake of flexibility. On the other hand, if you see your business staying stable for years to come, then it could be better to look for a longer lease.

Of course, the future can be difficult to plan for. If you’re unsure, arrange an open conversation with your potential landlord and ask any questions. Considering your ambitions before you lease a warehouse will ensure you have the right balance of flexibility and stability for the future.

Choosing a warehouse

Every warehouse lease needs to balance a range of current and future considerations. A commercial property expert can help you find your ideal warehouse, wherever you are in the UK. 

At Mileway, not only do we have a portfolio offering warehouses of all sizes across the country, but we also supply property managers to help you plan future growth. Indeed, we can support your expansion into a new space from our extensive portfolio even if you do have time left on your lease.

Want to find out more? Simply contact Mileway today, and a member of our team will be happy to get in touch with you.