Warehouse storage vs keeping inventory at my facility?

Your warehouse is packed and you're weighing the cost of renting outside storage space. South Dakota businesses often hit this crossroads during peak seasons or growth phases. The decision comes down to cost per square foot and how much control you need over your inventory.

Running out of warehouse space means you're either growing or your current layout isn't working. Outside storage makes sense when rental costs less than expanding your facility or when you need overflow capacity during busy periods. The key is whether you can afford to have inventory split between locations.

Rental warehouse space in South Dakota typically runs $3-8 per square foot annually, depending on location and features. Your costs include rent, transportation between sites, and extra labor to manage two locations. Calculate the total cost including fuel for trucks running between Sioux Falls and satellite storage, plus time lost moving products.

Start by measuring your actual space needs and peak inventory levels. Look for storage facilities near I-90 or I-29 that offer inventory tracking and can ship directly to customers. Gateway Distribution handles trailer staging and movement between facilities, so your trucks aren't tied up shuttling inventory. This keeps your drivers focused on deliveries instead of warehouse transfers.

With the right setup, you maintain control over inventory while gaining flexibility for seasonal peaks. Your main facility handles daily operations while overflow storage manages excess stock and slower-moving items.

Other things people in South Dakota ask