Creating small warehouse space

A friend of mine, who is the economic development director in a small town in northern Idaho, called me the other day and asked me about small warehouse space. The area of concern shows signs of industrial growth and there appears to be a shortage of small warehouse space for the industrial firm with 2 to 6 employees. There seems to be a private investor that would be willing to develop small space but wanted some input as to size and or configuration. The investor would like to build 6 or eight units at one time in order to help reduce the overall cost per unit. I advised him that there were at least two approaches that they may want to consider.

Building Blocks for Success


The first is what is referred to as incubator space. Incubator space is generally designed for strictly new start ups with the idea that they will need and want to expand within a couple of years. One of the ways to configure this type of building is place the units back to back and run a hallway down the middle between them and provide amenities in a common area. This is an excellent layout for the start up company but does require them to move once their business grows. Another configuration that will allow for possible expansion as a business grows, is a building constructed with back to back units but without a separating hall way but just a single wall dividing the units. They can run in a series of 2’s allowing units side to side as well. Say that each bay was 2400 sf;  If down the road a company needed more space this would allow for expansion  either front to back or side to side or both. This configuration would also allow for the sale of individual units. Owners and tenants both seem to like the flexibility of this type on setup.

If you have a unique problem and need help putting together a commercial deal or refining a plan for your client, call me, i can help. That’s what i do.

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