Many companies experience seasonal fluctuations in demand for their goods. A bustling, at-capacity warehouse in the winter may be sitting nearly empty during the summer and vice-versa for other businesses. Of course, this is just a visual representation of the true underlying problem: wasted money on unused space. Businesses in this position are overpaying for storage space they only need some of the time.

In contrast, utilizing flexible warehouse space for rent allows businesses to pay for the exact amount of space they need. Smart business owners and logistics operators who need to consider demand fluctuations rent warehouse spaces that can flex up and down as required and don’t require multi-year commitments. 

Another common customer of warehouses for rent are established companies looking to expand into new markets. During geographic expansion, there’s always a question of whether there will be sufficient and sustained demand in a new region. The up-front cost of buying a warehouse can be an expensive gamble. 

The choice to rent a warehouse requires less financial investment and can generate sales growth without the significant risk to profitability caused by a less flexible storage solution. 

Buying a warehouse space requires a major investment of funds. Is it necessary? Most logistics leaders would answer resoundingly, “No.” With so many options for great warehouse space for rent, warehouses owned by businesses themselves are quickly becoming a relic of a less-agile past.

The more transit points your goods pass through, the higher the likelihood they become damaged along the way. When a product moves from a warehouse to a distribution point, it gets loaded from truck to trolley to shelf multiple times before it reaches the final customer. Each of these handoffs increases the chances of damage in transit and that the product the end customer paid for will be returned. In fact, e-commerce retailers lose billions of dollars each year from returns of damaged goods.

This is why many large companies with delivery zones over a wide distribution area find it makes more sense to rent a warehouse to store goods in local areas. This way, there’s plenty of storage space where goods can be kept in stock and ready to make a shorter journey to the customer when an order is placed.

Real estate can be a sound business investment but it also comes with drawbacks. How much will a big down payment and loan affect your business’ solvency? What potential risks, like property damage and unexpected maintenance, will eat their way into your profitability? Most importantly, how do you know that your projected storage requirements at the time of purchase will remain stable?

All of these considerations are behind the trend of utilizing flexible warehouse units for rent. When you rent warehouse space, you give yourself the flexibility to adapt to changing business circumstances. PlaceHolder helps you rent warehouse space without being locked into a long-term commitment.

The pandemic has led to the e-commerce world making a huge jump forward that is likely here to stay. Customers also expect to get their orders faster than ever, which means that the companies with regional and local fulfilment centers have an advantage. With numerous warehouse spaces available for rent in Toronto, there are few barriers to pivoting your business for the new reality of retail.