Renting a Dallas Warehouse: 6 Things to Consider

Did you know packages can reach 93% of the United States in two days or less from a Dallas warehouse? 

In a world where consumers are expecting faster and faster deliveries, Dallas is an ideal warehouse location for both large and small businesses. Texas has a business-friendly environment, a growing economy, lots of available space, and a skilled workforce.  

If you’re a small business owner looking for a small to medium warehouse space to rent, here are six things to consider before signing a contract. 

What is a warehouse?

A warehouse is a space where a business keeps its inventory before it’s sent out to consumers. It can also include a space for production, or storage for materials needed to make the products. 

For small businesses in particular, warehouses can be very diverse. This might look like your garage, your basement, a guest bedroom, a pod in your driveway, a small storage unit, or a more formal space.

While it’s convenient and cost-effective to operate out of your home, sooner or later most serious business owners make a leap to a more formal warehouse. 

How big is a small warehouse space for rent in Dallas, TX?

A small warehouse for rent in Dallas, Texas can be as small as 300 square feet. Warehouse spaces this small are commonly found in co-warehouses, like Shift’s co-warehouse space in Dallas, Texas. 

5 Things to Consider When Renting a Dallas Warehouse

There are a lot of specific factors, based on your business that will contribute to determining if a particular Dallas warehouse is a good fit for you. 

Space, cost, and location are the three most common factors business owners consider. But, you’ll also want to think about docks, amenities, community, and security. 

#1: Space

All business owners and nonprofit leaders need to be clear on exactly how much space they need before renting a warehouse. Some things you’ll want to take into account when planning how much space you’ll need include:

• Inventory
• Packing supplies
• Equipment
• Office space
• Warehouse personnel 
• Loading and unloading areas
• Walking space
• Fulfillment areas
• Production
• Return merchandise 

Take account of the inventory you have currently to get started. Then consider what other spaces you’ll need in your warehouse to map out your space. Keep in mind that most warehouses have vertical shelving that’s somewhere between 10 to 15+ feet high for storage. 

Also, if you’re already moving a lot of products you may want to consider common pallet dimensions to determine how much inventory you can stack: 

• Length: 40 inches
• Width: 48 inches
• Max loaded height: 60 inches

While too much storage space is a waste of money, too little storage space isn’t great either. It can impact operations, cause clutter, and increase the likelihood of product damage. 

What size warehouse is best for my business?  

The size of the warehouse that’s best for you depends on the size of your business, your history of shipments, and the size of your products. 

Small Warehouse: Ideal for newer businesses with less experience or historical data on how much warehouse space they need. 

Medium Warehouse: Ideal for businesses with at least a year or two under their belt and an understanding of how their products ebb and flow so they can make the most of the investment. Or, small businesses that sell big products (like custom upholstery chairs) that can’t use a smaller space.  

Large Warehouse: Ideal for businesses that have been established for multiple years and can consistently predict that they’ll move a lot of product. These businesses also likely have financial backing to cover the cost of the warehouse if business goes south unexpectedly.

#2: Location

The location of your warehouse is often another important consideration with multiple factors. 

First, consider a warehouse that’s close to major transportation routes. This could include highways, interstates, rail lines, airports, or even the Houston seaport if you frequently ship internationally. The closer you are to a major transportation route, the easier it is to ship your products to your customers. 

You’ll also want to consider where you receive goods from. If you get your materials to make your products from the Houston seaport, you may want to pick a warehouse on the southeast side of Dallas, rather than a warehouse north of Fort Worth. 

How far do you want your warehouse to be from your home? If you’ll be commuting to the warehouse every day, you’ll want to make sure that you aren’t adding a long drive to your day, which can impact your work hours. Afterall, there’s nothing worse than being stuck in bumper to bumper Dallas traffic. 

If your business is rapidly expanding and you know you’re going to be hiring soon, you’ll want to make sure there’s people in the area who can work at your warehouse. They’ll need a way to get to your warehouse (like public transportation), or somewhere to park.  

What are some common Dallas warehouse locations?

Stemmons Corridor: One of the most accessible, yet congested freeways in the country (I-35E) makes Stemmons Corridor a desirable warehouse neighborhood in Dallas. It has a wide variety of older properties to choose from. 

Addison: This is a good neighborhood to consider if you want a neighborhood more central to Dallas and Fort Worth. It has both old and new properties, as well as consistent community activities and events, which can attract employees. 

Carrollton and Farmers Brand: These central DFW neighborhoods are home to both residential and corporate real estate. Most of the warehouses are newer construction, and there is both industrial and warehouse space. 

Richardson: North of Dallas, this neighborhood is home to lots of large corporations like AT&T and Verizon. There is retail, restaurants, and housing, making it a desirable location for your workforce. There is also lots of flex office and large warehouse space. 

Garland: This neighborhood has a reputation of being more affordable compared to the other ones. It has shopping, dining, and entertainment with a mix of older, small industrial spaces and big warehouses. 

#3: Loading Dock and Parking Spaces

When you’re thinking through your loading docks and parking spaces, make sure you consider what you need now, and what you’ll need six months down the line. 

While you don’t want to invest in too much warehouse space, it’s also not ideal to have to move your warehouse because you didn’t think through where employees would park or how you’d get orders out. 

It can help to consider which carriers you use now, and which ones you’d ideally like to ship with in the future. Can the dock doors of your new warehouse accommodate both?

When it comes to parking, consider how many spaces you’ll need for employees and visitors. Employees will be quick to quit if they’re having to move their car from one street parking spot to the next, or if they have to pay for parking. Visitors may skip a trip to your business if they can’t find somewhere to park their car, too. 

#4: Security

Security is important to any business owner, but it becomes more important as the resale value of your product increases. A business that sells back to school supplies doesn’t want to get robbed. But if you sell something like custom jewelry, someone breaking into your business could mean losing thousands of dollars. 

Look for a warehouse with great security, like 24/7 surveillance, controlled access, alarm systems, privacy fences, or a security guard. 

#5: Rental Flexibility

The cost for warehouse space is up 7.5% year over year, with an average of $8.04 pers square foot as of June 2024. An increase in demand and a decrease in availability has led to a steady increase in the cost of rental space since 2020. 

Small businesses may feel at a loss when they look at traditional warehouses that can require you to rent thousands of square feet with rigid leases requiring a 7 year commitment or more. 

Rather than signing a lease that makes your stomach flop, consider co-warehousing. A co-warehouse breaks a larger warehouse up into smaller rental spaces, so small businesses can grow their brands economically. 

Co-warehouses offer shorter contracts that can last month to month, a quarter, six months, or a year. This flexibility makes it safe to take a risk investing in a warehouse space without being locked into monthly payments for extended periods of time.

Also, by only renting out a small portion of a warehouse, you’ll be able to make the most of your investment. And, when the time comes, you can expand to accommodate new orders. If your business is seasonal, this could be invaluable for scaling up the warehouse space you have, and scaling down in off seasons. 

Also, moving is hard enough. If you’re going to expand or downsize, co-warehousing makes it easy to do that in the same building. 

#6: Amenities and Community

Amenities and community may be two things that fall lower on your list when it comes to renting a warehouse in Dallas, but it shouldn’t be overlooked. Great amenities and a thriving community can enhance your warehouse experience exponentially. 

Here are some things to look for when it comes to amenities:

• Industrial racking 
• Additional warehouse tools and equipment
• Climate controlled
• Break rooms 
• Conference rooms
• Wifi
• On-site management
• Kitchen
• Carrier pickup
• Mail and package handling

Any amenity that your co-warehouse can offer is one less out-of-pocket expense for you. 

Community is another benefit of a co-warehouse. Not only does co-warehousing allow you to opt in to a flexible contract, it also helps you work with business owners and nonprofit leaders who are at a similar growth stage. 

You can collaborate, share struggles, place bulk orders, and do so much more together than if you were in a traditional warehouse all on your own. 

Go Find Your Small Dallas Warehouse Space for Rent

You’ve got a leg-up on other small business owners around the country given that you’re located in Dallas. This city has an exceptional location, accessibility, and labor force. Now, you just have to go out and fight the right warehouse space to grow your business. 

Ready to visit a small warehouse in Dallas, Texas and start expanding your brand? Sign up for our email list to be notified as soon as our small cowarehousing spaces are available. We have warehouse spaces as small as 300 square feet and as large as 5,000 to help your business thrive.