If you own an empty warehouse, you have two major options. You can sell it for an immediate profit, or you can use this empty warehouse space to make money. If you consider yourself to be a bit of an entrepreneur, you’ll want to use this space as a source of continuous income.
Renting empty warehouse space to another company is perhaps the most solid source of monthly income. You can rent or lease it out in the form of office space or as a rental for events and entertainment. Or, you can build your own business by creating a sporting, fitness, or storage unit facility.
Though your options with your empty warehouse space are practically limitless, you want to pinpoint a certain plan that you can feasibly pursue. So, let’s go over the best ways to use your empty warehouse space as a source of income.
Convert Warehouse to Office Space
Converting your warehouse to office space can be a little pricey, but it’s a great investment if you’re looking for a consistent source of monthly income. It’s even better if your warehouse space already has an interior office set up.
The conversion process might involve setting up cubicles, “finishing” portions of your warehouse, and even including some necessary office equipment. Having more to offer in this office space can help you to bump up prices.
The amount of income you’ll bring in from your warehouse turned office space will depend on how much office space you actually have to offer. This rate is usually based on the square footage available. The more space you have, the more you can reasonably charge.
In America, it’s not unusual to charge between $2 and $6 per square foot, per month. That means you can bring in an impressive $24,000 or more on an annual basis by charging bare minimum on 1,000 square feet of office space in America.
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Rent Out an Event & Entertainment Center
If you’re lucky, your empty warehouse space is quite spacious and large. This is the perfect location to set up an event or entertainment center or a venue. You can then rent out this facility to local musicians, organizations, and sports teams to supplement your income.
You will have to put in a good chunk of change into this conversion to bump up the rates you charge. Very few acts or organizations are looking to rent out a bare-bones warehouse with dim lighting and no color.
So, think about the types of events you’d like to host. For example, it’s a good idea to provide seating or tables if you want to use your space as a mini-concert venue or banquet hall. You also need to add bathroom facilities for your guests.
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Just how much income you make depends on how high-end of a venue this ends up being. You might be able to charge more than $100 dollars an hour for rental. This can bring in a cool $52,000 if you rent it out for a mere 10 hours a week.
Provide Parking Spots
If you live in a busy or congested area, your warehouse might just be the perfect solution for local business people. That’s because you can convert your warehouse space or (even just use the warehouse parking lot) to sell or rent out parking spaces.
There is a little extra work involved in this type of business. You’ll have to set-up a system to guarantee that only those with parking passes and permits are actually parking on your property. This would be a good time to invest in an automatic gate outside of your warehouse.
Since the average American spends over 17 hours a year looking for a parking spot, there’s definitely a market for this type of service. That’s especially the case if your warehouse is in a high-population area like a city or a downtown area.
You might be able to charge thousands of dollars per year on each spot that you rent out. For 100 spots at $1,000 each, you can bring in an extra $100,000 a year. In less desirable locations, you’ll want to set a much lower fee.
Lease Warehouse Space
Some companies and individuals out there are in quite the pickle. They need warehouse space to perform their duties and responsibilities. Yet, they can’t afford to buy a warehouse outright with their current financial situation.
That’s where your warehouse comes in. Renting out warehouse space is an extremely lucrative business plan. Plus, you can develop a lease that requires your tenants to pay all the fees and operating costs that come with running the warehouse. That’s less you have to take out of your paycheck.
On average, you’re looking at about $0.85 per square foot on a monthly basis. That means you can boost your income by over $4,000 a month if you own a 5,000 square foot warehouse. This averages out to about $51,000 a year in additional income. Larger warehouses equal more income.
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Create a Sporting or Fitness Facility
If you’re so attached to your warehouse space that you don’t want to let it go, it might be time to convert it to a sporting or fitness facility. This gives you the chance to keep the warehouse in your name while also becoming a local business owner.
You can use your space for just about any type of facility. Maybe you want to create an indoor paintball arena, go-kart track, or even just an indoor turf field for soccer or football. Or, you can rent out tennis or basketball courts by the hour. If you create your own gym, you can set a monthly fee for all members.
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Here’s a look at what you can charge for each of these services:
- Basketball or tennis court: $80 an hour or more (or charge by the player)
- Paintball or go-kart: $25 or more per player/participant
- Gym membership: $10 or more per person, per month
Remember, owning a business means it’s your responsibility to buy, repair, and replace the appropriate equipment. It might also be a good idea to rent out these facilities for events for a little extra income.
Sell Storage Space and Units
Another way to keep the warehouse, yet profit off of it, is by creating your own self-storage unit facility. All it takes is creating individual units within your warehouse that are of various sizes that you can rent out to the public.
The pricing will vary depending on the size of the unit, but you can charge between $60 and $180 a month for a regular storage unit. Even if you’re only selling out of 100 units, this can bring in between $6,000 and $18,000 a month.
That ends up coming out to between $72,000 and an impressive $216,000 a year. If you really want to bump up those prices, you can create climate-controlled storage units instead. This can bring in an extra $15 to $45 a month per unit, per month.
It’s a great idea to use your empty warehouse space to make a little extra money. But, you need to do a little bit of research to be sure that you’re actually allowed to rent it out, lease it, or even make structural changes. Contact your local government officials to learn about the zoning requirements and what you can do. Also, be sure that you’re contacting a real estate lawyer to help you draft your lease agreements.
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- Market Watch: Here’s how much your company pays to rent office space
- USA Today: Drivers spend an average of 17 hours a year searching for parking spots
- Move: How Much Does It Cost to Rent a Storage Unit?
- Peerspace: How much does it cost to rent out a venue
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