Using a Retail Store in a Strip Mall as Warehouse Space - Is this Permitted?

[kaylyn23]

In my area, small warehouse space is very difficult to find. There's almost nothing under 5-10,000 s/f. I'm currently in a subdivided warehouse, it's extremely expensive ($4.50/sf/month), and I'm outgrowing the space. What I've noticed is that there are a lot of retail strip malls with vacancy. I've been thinking about contacting some of the listing agents, but I don't know if this is something that would be acceptable. There are so many units in the 1200-1500s/f range that look like they could work. I think my only concern is losing the loading dock (though some seem to have a shared one). Has anyone done something like this? I don't know if they would be concerned about the lack of foot traffic. I would be using it primarily for warehousing, and I don't intend to have a retail business with normal operating hours. I would definitely consider pickup orders though, which is something that I never really considered previously. I appreciate any input!

 

[sierra1412]

@kaylyn23 I don't think they would want it. Their entire goal is to drive foot traffic.

That said you can easily side step that by just setting up a retail counter at the front and using the rest of the space as a warehouse.

That might be a good idea anyway, to give you a brick and mortar storefront.

 

[kaylyn23]

@sierra1412 Thanks. That's kind of what I was thinking. I guess it doesn't hurt to ask.

 

[sierra1412]

@kaylyn23 It definitely doesn't hurt to ask.

I know a lot of ghost kitchens are operating out of unused mall space, so it's possible that they might be so desperate to rent that they don't care.

 

[mph]

@sierra1412 Space might not be as cheap as you'd hope, landlords may have restrictions on their loans that require minimum per sf charges, etc. You can find some discussion of this based on "why are so many storefronts empty"

 

[sherryanne]

@kaylyn23 Not having a loading dock would be a hassle. Make sure you find a space where it can accommodate the size of delivery trucks you normally use and have a way to get the boxes or pallets inside.

 

[kaylyn23]

@sherryanne Don't I know it! I was using a storage facility for a year, and it was a complete nightmare. Between the truck size limitations, limited access fees, and the need for a liftgate, it was not fun!

 

[sherryanne]

@kaylyn23 Hopefully you can find a good spot, or can you rent out the unused portion of warehouse space you have now?

Would landlord let you sub-lease and put up temporary walls within warehouse. If place was empty awhile before you. Maybe you can negotiate cost down.

Good luck to you.