Why Public Warehouse Space Is Better Than Private

public warehousing

Public Warehouse and Private Warehouse

If you need a warehouse business for your growing business, you’ll have two options to choose from- public warehousing or private warehousing. There are some advantages and disadvantages that come along with each option, but most of the business consider public warehouses as better options than a private warehouse. Here are just a few of the things that make public warehouses the right choice.

Here are 4 reasons to consider a public warehouse for your company’s storage needs:

1. No Capital Investment is needed in Public Warehousing.

When a company or business chooses to operate a private warehouse, it requires an outlay of capital to purchase, upgrade, and maintain the property. Additionally, safety equipment, storage racks, forklifts, and a myriad of other things must be purchased to operate smoothly.

Contrarily, a public warehouse has all of the infrastructure, equipment, and employees in place. There is no capital investment required, which means money will not be diverted away from other essential aspects of your business.

2. No Property Tax For Tenants Of A Public Warehouse

Property taxes are a huge expense for companies that own large warehouses. Failure to pay taxes on time results in fines and penalties, further increasing the cost. In tough financial times, that kind of liability can cause serious problems that may be difficult, or impossible, to recover from.

On the other hand, there are no property tax liabilities with public warehouse space for the tenants. Those costs are the sole responsibility of the warehouse provider.

3. Public Warehousing Offers Greater Flexibility

Owning a private warehouse restricts your company’s ability to relocate should the need arise. It can take a great deal of time and effort to sell a privately held warehouse facility, find a new location, and build to suit your needs.

However, public warehousing offers a great deal of flexibility since typical lease agreements only require a 30 or 60-day notice before moving. In addition, expanding into a new territory or geographic location can be facilitated with ease by utilizing other public warehouse space.

4. Public Warehouses Offer Value-added Services

If you’re the owner and operator of a private warehouse, inventory control, sorting, packaging, shipping, and receiving are all up to your company to manage. Employees must be hired, trained, and supervised in order to assure quality and compliance.

Most public warehouse facilities offer these types of services as part of the lease agreement. It’s like having an entire staff of dedicated employees that you don’t have to put on the payroll. In addition, third-party providers are able to offer lower rates for other logistics services such as transportation.

Consider Tenaxx Logistics For All Your Company Warehousing Needs

Before you invest in a private warehouse for your company’s storage needs, take a moment to consider what you’ve read here. For most companies, operating a private warehouse is expensive and restrictive, which makes growth slow and difficult.

Public warehouse space, on the other hand, is cost-effective and flexible, allowing your company to grow faster and easier. If you are considering storing your products in a public warehouse, look no further than Tenaxx Logistics. Since 1966, Tenaxx has been a fixture in public warehousing. Give our team of experts a call today.