What is Co-Warehousing?

Co-warehousing is a flexible workspace solution for entrepreneurs and small businesses. Co-warehousing companies divide large industrial buildings into smaller, more affordable shared warehouse spaces. These smaller spaces usually have easy access to building amenities, flexible terms, and less headaches than managing a traditional industrial warehouse.

Imagine a workspace that’s purpose built for entrepreneurs needing space to create, store, or ship goods, but without long-term agreements, high overhead, or the stress of property management. It’s the size you need with the features that help your business grow.

Finding the right space is important because it can save time, cut costs, reduce operational issues, and increase both effectiveness and efficiency for your business.

Finding Space is Hard

The problem is that finding the right space is hard. Garages and storage units are too small and not made for work, while traditional industrial spaces are expensive and demand long-term leases. Coworking offices don’t offer warehouse space or room to create, and property management is stressful and time-consuming.

What Co-warehousing Space Looks Like

Co-warehousing spaces can include:

• Private Warehouses
• Dedicated Offices
• Conference Rooms
• Break Rooms / Kitchens
• Community Space
• Event Space

Co-warehousing facilities offer flexible warehouses and workspaces that typically range from 200 to 5,000 square feet. Though these spaces are within a larger shared building, each individual unit is private and secure with member-specific access control.

Large industrial buildings are transformed into co-warehousing spaces using dividers or walls, separating them into multiple units.

Many of the units are warehouse spaces, which are ideal for storing goods and facilitating shipping operations. Other units are dedicated offices, with furnished workspaces suitable for tasks like computer work or administrative activities.

Many facilities feature common spaces that include kitchens, restrooms, collaboration areas, and meeting rooms. Additionally, shared loading docks and shipping areas are available to simplify logistics. Some facilities even offer event spaces and parking is typically available for members.

Who Co-Warehousing Works For

Co-warehousing serves a variety of entrepreneurs, making it a valuable solution for:

• Ecommerce companies
• Small businesses
• Light manufacturers
• Startups
• Makers and creatives

Space to Create, Make, and Innovate

Co-warehousing facilities offer versatile spaces ideal for a diverse range of hands-on businesses. Here are just some examples:

 Producing: Candle makers can pour and set their wax, or a boutique stationery brand can bind their latest notebooks.

 Light Manufacturing: An ecommerce brand could complete final screwdriver assembly, or an electronics manufacturer can populate and solder circuit boards.

 Research & Development: Delivery companies can prototype new pizza drones, or hardware startups can develop smart home devices.

 Quality Assurance: Robotics teams can run rigorous hardware tests, or creators can complete final testing of their Kickstarter projects.

 Repairing: A guitar tech can perform guitar set-ups, or a local bike shop can perform repairs for customers.

 Innovating: Teams can develop kitchen gadgets with smart capabilities or create self-watering plant systems.

 Creating: Sculptors can work on large installations, or furniture upcyclers can refurbish old pieces.

 Making: Leather artisans can craft custom bags and accessories, or 3D print enthusiasts can experiment with sustainable materials.

From production runs to artistic creations, co-warehousing facilities let your business evolve and grow in a space built for making.

Storage That Works for You

At the center of co-warehousing is storage. Here’s how it’s used:

 Inventory Management: An ecommerce fashion brand can store their inventory, or an Etsy seller can keeptheir handcrafted jewelry organized.

 Overstock: A home decor online shop can store last season’s unsold items, or a tech accessory retailer can store extra chargers.

 Seasonal: A Christmas decoration company can store inventory for the holidays, or an outdoor adventure company can protect their kayaks over winter.

 Equipment & Tools: A contractor can store rarely used tools, or a photographer can keep light stands, props, or backdrops safe when not in use.

 Temporary: A film crew can stash props between scenes, or businesses in transition can store office furniture during a move.

 Raw Materials: A textile store can keep rolls of specialty fabric, or a potter can store premium clay and glazes.

From optimizing inventory to safeguarding equipment, co-warehousing ensures your storage needs are met professionally.

Ship, Receive, Repeat

Elevating your business requires more than just an exceptional product—you also need seamless logistics. Co-warehousing can help:

 Pick and Pack: An online board game store can hand-pick games for each customer, or a fitness brand can prepare workout items for shipment.

 Shipping: A handmade soap company can affix shipping labels to packaged orders, or an indie book publisher can prepare bulk shipments for distributors.

 Receiving: An ecommerce sneaker boutique can receive limited-edition shipments, or a soap maker can receive essential oils and natural bases.

 Packaging Products: A puzzle creator can place individual puzzles into retail boxes, or a skincare line can apply labels to their bottles.

 Kitting: A subscription box service can assemble monthly boxes, or an events company can put together promotional gift bags.

Flexibility on Your Terms

With co-warehousing, there are typically no long-term commitments. Initial agreement terms typically range from month to month to up to one year, and there are often cost savings if you agree to longer length terms. You’re not confined to one spot either, you’re able to move to any available space of any size at any time. If you have a seasonal business or aren’t able to anticipate growth, you’re free to scale up or down as needed. Essentially, co-warehousing is built to flex with your ever-changing business needs.

More Than Just Square Feet

Co-warehousing often comes with an array of features and amenities aimed at simplifying your work life and boosting efficiency. However, the specifics can vary from place to place, so it’s always a good idea to check out what’s offered.

Commonly, you might find:

 Loading Docks: Many facilities offer truck-level loading docks complete with forklifts and pallet jacks to help you move goods easily.

 Carrier Pickups: Daily pickup and delivery schedules with big-name carriers like UPS, USPS, and FedEx are usually available.

Wi-Fi: High-speed, secure Wi-Fi is often a perk, so be sure to ask.

Security: Robust security measures like 24/7 video surveillance and access controls are standard, but again, worth confirming.

 Conference Rooms: Some co-warehousing spaces have reservable conference rooms for your meetings.

 24/7 Access: Many offer unrestricted access to your space, letting you work on your own schedule.

 On-Site Management: There may be an on-site team during business hours to assist with any needs.

 Industrial Racking: Customizable racking and shelving solutions may be available, helping you maximize your space.

 Climate Control: Climate-controlled spaces are a common feature but always worth double-checking.

 Break Rooms: Many facilities feature communal break rooms stocked with basic refreshments.

 Electricity: Convenient electrical outlets are often readily available for powering your devices and machinery.

 Mail & Package Handling: Mail and package services may be offered, making your life a bit easier.

If you’re looking for a co-warehousing space that ticks all these boxes, you may want to check out Shift. We offer all the above and are purpose built for entrepreneurs who need space to make, store, and ship their goods.

A Community of Businesses

You’ll often find an emphasis on community with co-warehousing. Some locations prioritize fostering a close-knit environment that encourages collaboration and knowledge sharing among tenants, while others might keep the focus on functional space and storage. Regardless, co-warehousing facilities often provide more than just a space for your goods — they offer an opportunity for community.

Space Made Easy

Co-warehousing removes the headaches commonly associated with traditional warehousing. Here, one monthly fee often takes care of all the logistical and operational details, from utilities and maintenance to additional amenities. With many co-warehousing options, you’ll find everything set up and ready for you, enabling you to focus on what you do best — running your business.

Grow Big, Spend Small

Co-warehousing offers an affordable alternative to traditional industrial spaces, but it’s more than just a cost-saving measure. The amenities and flexibility it provides can actually serve as a catalyst for your business growth. Without the burden of overhead or equipment costs, you can focus on what matters most — scaling your operations. And you won’t be held back by choosing a less-than-ideal space, like a garage, which could limit your overall growth potential.

On-Site Support for Smooth Operations

On-site management in co-warehousing spaces ensures operations run smoothly. They are readily available for troubleshooting issues, providing immediate assistance, and ensuring the facility is in optimal condition. Beyond logistics, they can introduce you to other members, fostering a collaborative environment.

A More Sustainable Way to Warehouse

Co-warehousing can be a more sustainable option when compared to traditional warehousing. By sharing space and resources, there’s a reduced footprint on utilities and construction materials. It promotes efficient use of space, meaning fewer buildings, less waste, and a smaller carbon footprint. And many co-warehousing spaces are increasingly adopting eco-friendly practices like recycling and energy-saving systems.

Location, Location, Location

Location is a key advantage when it comes to co-warehousing. These spaces are often strategically placed close to major transportation hubs, making shipping and receiving more efficient. Whether you’re near an airport, seaport, or highway, the ease of access can save you both time and money. Plus, being situated in a region that aligns with your business needs can offer additional geographic benefits, such as proximity to suppliers or target customer bases.

Keeping it Secure

Security is a top priority in co-warehousing environments. These spaces usually feature around-the-clock video surveillance and member-specific access control to ensure your inventory is safe. Some sites may even have security personnel monitor the premises after business hours for added peace of mind. All these measures are aimed at keeping you, your team, and your products safe at all times.

Skip the Red Tape

In a co-warehousing environment, there’s an added layer of assurance when it comes to legal compliance. These spaces are designed to adhere to local ordinances, permits, and building codes, eliminating some of the complexities that come with securing a commercial space. This means less time spent by you in navigating these initial requirements, giving you a solid foundation to operate your business with confidence.

A Few Drawbacks

While co-warehousing offers many benefits, it’s crucial to be aware of its limitations.

Availability may be limited due to its relatively new status as a workspace solution. Additionally, certain business types that require heavy power usage, generate significant noise, or work with disruptive materials may not be the best fit. It’s essential to evaluate whether co-warehousing aligns with your specific business needs and operations. If you’re not sure if you’d be a good fit, Shift would love to chat and answer any questions you may have.

A Look into the Future

E-commerce space is projected to increase by 500% over the next decade, putting pressure on traditional warehouses. As flexibility and scalability grow in importance, small-scale businesses also benefit from the democratization of commerce. Although co-warehousing was relatively unknown a few years ago, its demand is increasing, and the number of new locations continues to grow.

Is Co-warehousing Right For You?

Co-warehousing is a modern solution for entrepreneurs and small businesses in need of space to make, store, and ship. Beyond just flexibility and scalability, it offers additional amenities and features, making it a go-to option for companies eager to expand without the limitations of long-term leases or underutilized space.

The unique value proposition of co-warehousing is its ability to address an array of space challenges. With its hybrid model, businesses get the advantages of self-storage, traditional warehousing, and coworking. This empowers companies to personalize their storage solutions while taking part in a vibrant community of entrepreneurs, enriching not just their business but their network as well.

There are many benefits of co-warehousing, including significant cost-savings, flexibility, and opportunities for collaboration. These aspects make this space solution an ideal alternative to traditional industrial space.

Is co-warehousing right for your business? We’d love to have you over and show you around. Book a tour or book a call today to see how Shift can work for you.