Ideas for excess warehouse space? Can run a business within a business?

[Peter_Ricca]

Hi everyone,

I'm currently in the process of purchasing an 8,500 sq ft Liquor Store in NJ. The store itself is about 6,000 sq feet, but the back room is a very large practically empty warehouse space.

I will only really need maybe 5% of that space to store extra stock.

My question is: What are some potenial income possibilities for about 2k sq feet of storage space? There is a seperate garage door entrace to the back and huge palate racks that are sitting there empty and unused.

Would it be possible to lease that space to another buisness that needs to store excess materials? What would this process look like?

Any suggestions on what to do with the space, or how to rent it out as commerical storage would be greatly apprecaited!

Best,

Peter Ricca

[Steve B]

List it on Crag's list as warehouse/storage space. When you find someone that needs it - complete a lease agreement with them (with the help of an attorney if you think it's necessary).

[Harold Mansfield]

Seems like it would just be a matter of clearing it with the city, checking with your insurance policy, and then coming up with some terms, a contract and putting out some ads.

I would probably rather rent it to a friend or business associate rather than a complete stranger, after all your business is there. In a perfect world, another business that just needs additional storage space would be nice because they aren't actually running a business from there. Just storing product. Much more peace of mind for you.

You may even check to see if you could provide the space to a charity for the tax benefits.

[ready123go]

Subletting commercial space is quite common in our region (Greater Detroit Metro area). One of our former associates bought a huge warehouse space on a main road and then rented some of the space out. The associate was in appliances and the two renters were a house painter and a candle company.

Our associate just had the interior space partitioned off so that each of them had separate spaces & entrances.

Most of the buildings have "xxxx sq. ft. to rent" signage on them with a commercial real estate agent/company logo. Other than the Craigslist suggestion, you might also want to try Loopnet.com to advertise.

[Russ in Vancouver]

Id be careful about who you consider, Id hate to have my liquor warehouse robbed.

[Wozcreative]

Some questions to ask yourself:

1. If you are paying for the interior and not exterior (ie you pay mantenance fees, can't do any exterior changes/is run by a condo corporation type company), you will need to know if they allow multiple businesses there.

2. Your building + properlty insurance needs to know you are going to share.. and if they even allow it.

3. This person should have their own contents insurance incase of any disasters, theft, fire etc.

4. You will need to pay taxes on this extra income.

5. Hire smeone who specializes in commercial real estate to find a suitble candidate. Costs usually are 1 months rent + Taxes