If you’re looking for a small warehouse space in Canada, you’ll want to choose one with industrial zoning. A typical warehouse in Hamilton, Ontario, has 24ft ceilings, industrial zoning, and is shared with an office. It will also come with one office, so it’s perfect for one person, or two people who want to work together. Read on to learn about the benefits of shared warehouse spaces.
Cost of renting a warehouse space
There are three main components of the cost of renting small warehouse space in Canada: the base rental rate, NNN, and the tenant’s estimated operating expenses. Depending on the location, the latter two elements can range from a few dollars per square foot to several thousand dollars per square foot per year. Many warehouse landlords charge their tenants NNN and base rental rates along with additional costs like electricity and management. These expenses are tacked onto the base rental rate and the tenant’s electricity bill, which typically runs around $2 per square foot per year.
The first factor is location. If the warehouse is located near a highway or major road, it will be easily accessible for customers. It also helps if the space is near a transportation hub, which will make it easier for the tenant to transport goods. If you plan to rent a small warehouse, be sure to find one near a public transportation route, as this will save you time and energy when moving goods.
The second component is rental cost. Warehouse rent is calculated using a base rental rate per square foot and estimated operating expenses. In Canada, average rent for warehouse space is $0.85 per square foot. If you need a smaller space, consider negotiating a rental price that includes the cost of HVAC units, electricity, and other utilities. The average monthly cost of renting a small warehouse is between $1.50 and $2.00 per square foot.
Cost of buying a shared warehouse space
Purchasing a warehouse space for your business offers several advantages. You will have total control over the space, have the ability to customize your space and enjoy tax benefits. Plus, you will no longer have to worry about paying rent or other expenses to a landlord. On the downside, you will be fully responsible for maintenance, utilities, taxes and injuries. Here are a few factors that will impact the cost of buying a warehouse space for your business.
The first thing you should consider is the cost per square foot of warehouse space. A shared warehouse space will cost approximately $6 per square foot. A good way to determine the exact cost of your space is to calculate the square footage and estimate the operating expenses for it. As a general rule of thumb, the cost of 3,000 square feet costs $18,000 per year. Then you will need to pay the electricity bill. The average electricity bill is around $2 per square foot. The cost of purchasing a shared warehouse space is relatively inexpensive, but it does have some downsides.
Another drawback of shared warehouse space is that it may require a down payment. That amount is often hefty, so you should consider your financial situation before making this decision. Plus, you will need to consider other expenses associated with owning a warehouse, including insurance and maintenance. While owning a warehouse may be a great position for your business, it can also come with hefty upfront costs.