Warehouse storage vs keeping inventory at my facility?

Your warehouse is hitting capacity limits. You're weighing the costs of renting outside storage space against the complexity of managing inventory across two locations. Colorado businesses face this choice when growth outpaces their current facility.

Running out of warehouse space forces a choice between expanding your current facility or renting external storage. External storage makes sense when your facility costs exceed $8-12 per square foot annually, or when you need overflow capacity during peak seasons. The complexity comes from managing inventory across locations and potential transportation costs.

Outside warehouse storage typically runs $4-8 per square foot annually in Colorado, depending on location and services included. Add transportation costs between facilities, usually $50-150 per trip depending on distance. Factor in inventory management software or tracking systems if your current setup can't handle multiple locations.

Calculate your total cost per square foot at your current facility, including utilities, insurance, and labor. Compare this to rental rates plus transportation costs. Look for facilities that offer inventory tracking and can ship directly to customers, reducing your handling. Gateway Distribution provides warehouse space with inventory management and direct shipping capabilities.

The right choice gives you room to grow without breaking your budget. External storage works best when it reduces your per-unit storage costs or provides flexibility during busy seasons. Your inventory stays organized and accessible regardless of location.

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