Self-Storage vs Co-Warehousing: What’s Best for Small Business?

When it comes to running a small business or embarking on an entrepreneurial journey, the importance of space is often underestimated. Perhaps you’re an online retailer managing growing inventory, or maybe you’re a crafter who needs room to create and store your handmade goods. Whether you choose self-storage or co-warehousing, the space you choose can have a significant impact on your business operations.

Traditional self-storage units often come to mind as a solution to this problem. They’ve been around for years and are commonly used for both personal and business storage. However, a newer, more specialized form of space management has emerged: co-warehousing. This article provides an in-depth comparison to help you decide between self-storage or co-warehousing and make a well-informed decision tailored to your needs.

What is co-warehousing?

Size and Scalability

When it comes to storage solutions, both self-storage and co-warehousing provide a range of sizes to accommodate various needs. However, they serve different kinds of requirements in terms of scalability. Self-storage tends to offer a variety of unit sizes, typically 25 to 300 sq ft. They’re on the smaller side and are ideal for use by individuals or smaller businesses.

On the other hand, co-warehousing includes an additional layer of flexibility, designed to accommodate businesses at different stages of growth. Not only can you find spaces to fit your current needs, but you can also find spaces that allow for expansion as your business scales, with sizes up to 5,000 sq ft. The scalability aspect can be a game-changer for businesses looking to grow without frequently relocating their operations.

Amenities Beyond Basic Storage

In a self-storage setting, the focus is primarily on providing a simple space for you to store your belongings. Beyond that, you’re not likely to find many amenities. Some self-storage facilities do offer restrooms or coffee, but these features are usually the exception rather than the norm.

Co-warehousing, however, aims to be a comprehensive solution that adds significant value to your business operations. Amenities may include restrooms, kitchens, conference rooms, and coffee, just to name a few. These extras can drastically impact your day-to-day activities, providing an environment that goes beyond simple storage, creating a space for you to do your best work and grow your business.

Climate Control for Comfort

Spending considerable time in a storage space means comfort becomes important. Traditional self-storage often lacks climate control, impacting your ability to work effectively over long periods. You’re subject to fluctuating external conditions, affecting your productivity.

Conversely, co-warehousing spaces can sometimes be climate controlled. This creates a more comfortable setting for extended work sessions. Whether you’re packing orders, managing inventory, or holding team meetings, the controlled climate in co-warehousing supports better, more focused work.

Ready for Business

When comparing the two options for business readiness, remember that self-storage isn’t designed to be a place of business. While these spaces offer space to do work, they’re often missing basic features like electricity and internet. Not to mention, they’re not equipped to hold meetings or give you an address for mail and package delivery.

Co-warehousing takes a more direct approach, with features that support the daily logistics of running a business. This could range from carrier pickups and loading docks to lightning-fast Wi-Fi connectivity for you to run your business. These features collectively make co-warehousing a more suitable option for businesses requiring more than just storage.

Equipment and Infrastructure

If you need to move heavy objects or goods around your storage space, equipment availability becomes a crucial factor. Self-storage typically leaves you to handle this aspect yourself, which can be a drawback if you lack the necessary tools.

Co-warehousing spaces frequently offer equipment like forklifts, pallet jacks, dollies, and carts as part of their monthly fee. The inclusion of this kind of equipment is particularly beneficial if your business involves heavy lifting or high volume, saving you both time and additional rental costs.

Safety and Security First

Security considerations are very important, regardless of the storage solution you choose. Self-storage does offer a basic level of security, such as basic security cameras, padlock and key, or a gate with pin code access, but these measures are generally rudimentary.

Co-warehousing often features more advanced security, including more surveillance cameras, digital security to access the building, and on-site management and staff, granting peace of mind that your business assets are well-protected. With 24/7 access, you can attend to your business needs whenever they arise, offering a level of flexibility that not every self-storage facility can match.

Cost-Effectiveness

If all you need is a bare-bones space to store your stuff, self-storage seems like the most cost-effective option. However, if you plan on using self-storage for more than storage, you need to account for the amenities and additional features you may have to source elsewhere. These can add up and negate any initial savings you might achieve by choosing a cheaper storage option.

Co-warehousing, while potentially pricier upfront, is a complete place of business. The amenities and equipment that come bundled in — like equipment, internet, and office space — often justify the higher price point, offering you more bang for your buck in the long run.

So What’s Better: Self-Storage or Co-warehousing?

When deciding between self-storage or co-warehousing, the ultimate choice boils down to your unique business needs and long-term goals.

Are you looking for a quick, inexpensive, and temporary fix? Do you need a bare-bones space to put your extra stuff? Then a self-storage unit might be the most cost-effective and best fit for you.

Or, are you in it for the long haul? Do you want space that is designed for businesses with features that can help you save time and brain power? If so, co-warehousing will offer the amenities and features you need to grow.