There's A Critical Small-Warehouse Shortage. Meet The Company That's Solving It

WareSpace, a national provider of co-warehousing and small-bay industrial space, is expanding its footprint with recent property acquisitions in North Carolina, Texas, Maryland, Colorado and Arizona.

The fast-growing company is capitalizing on demand from the type of clients that large industrial warehouse owners and operators have ignored: small, local businesses.

“The regions where we are opening have fast-growing economies with strong job creation,” said Levi Cohen, co-founder and CEO of WareSpace. “However, these are locations where small-scale e-commerce and light manufacturing businesses have historically struggled to find space that’s correctly sized, priced and equipped.”

Founded in 2018, WareSpace converts underused industrial, flex and retail properties into modern multitenant hubs with 200 SF to 2K SF private warehouse units where local businesses and tradespeople can base their operations.

The company’s business model is akin to coworking but for the industrial sector. WareSpace offers spaces with flexible and short-term leases, no personal guarantees and all-in-one monthly pricing.

At its locations, WareSpace general managers host events for tenants, providing opportunities for like-minded business owners and entrepreneurs to network and build community.

“Our on-site general managers are a critical part of what we offer. They represent the brand, and they’re often the first line of support for helping and empowering tenants,” said Joseph Ely, co-founder and chief operating officer.

“For many of our tenants, our on-site managers are community leaders and operational guides.”

WareSpace aims to fill a gap in the market, Cohen said, with each of its buildings offering fast, frictionless move-ins, transparent pricing and spaces that can scale with its tenants.

The company doesn’t just subdivide large warehouses, Cohen said. It is vertically integrated, with acquisitions, construction, development, marketing and leasing all handled in-house.

“Operating with all verticals in-house allows us the ability to ensure a high level of quality control, consistent operations and a uniform tenant experience across locations,” Ely said. “It has also allowed us to scale quickly.”

It owns and manages more than 1.7M SF across 18 locations and 13 cities, with active expansion plans to be in every major metropolitan statistical area within the next two years.

“The properties we acquire and retrofit become energized hubs that support the surrounding business community,” Ely said. “Many of the tenants end up working together and networking. They become their own little ecosystems to drive local business growth.”

WareSpace clients also get access to shared amenities and essential industrial infrastructure such as loading docks, warehouse equipment, high-capacity electricity, kitchen lounges, shipping stations and conference rooms. Also included in the price of rent is high-speed WiFi, daily cleaning and more.

When looking to acquire new assets for their locations, the WareSpace acquisitions team prioritizes properties in commercial corridors and infill locations.

“These are places where businesses need to be close to customers, suppliers and workforce talent,” Cohen said. “WareSpace buildings tend to be located within a short drive from residential areas and downtown cores.”

WareSpare focuses on high-growth metropolitan areas where population, employment and economic activity are all expanding, he said. These urban regions are most likely to attract businesses and individuals looking for WareSpace’s niche product. 

Consumer expectations for faster delivery have intensified the scarcity of infill warehouses, making last-mile facilities increasingly valued and often hard to find, Susan Bergdoll, senior vice president and partner for the Midwest region at industrial developer CRG, told Bisnow in March.

Cohen said the company’s plans comprise rapid national expansion. 

“WareSpace launched its first location in suburban Washington, D.C., in 2018, and demand was strong,” Cohen said. “The building was leased quickly with a waiting list in hand. There are many outdated offices, challenged industrial and retail buildings sitting empty. We see massive potential.”

As such, WareSpace will continue to invest in acquiring underperforming assets and adapting them, he said. The company is also doubling down on nurturing its human capital to continue to ensure its high level of customer service.

“Our on-site general managers are a critical part of what we offer and our recipe for delivering empowerment to our tenants,” Ely said. “For many of our tenants, they are community leaders and operational guides.”

To support its managers, WareSpace is investing in technology to expand the “toolkit” they can leverage to provide hands-on support to clients.

“If our tenants are successful, we’ll be successful,” Cohen said. “We want them to feel supported and empowered to grow.”

This article was produced in collaboration between WareSpace and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.