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A field warehouse is a rented building on property owned by the landlord, with the tenant paying rent based on a leasing agreement. It’s an economical alternative to owning facilities, especially for short-term storage needs. Companies specializing in providing field warehouse space offer services like temperature control and 24-hour security.
A field warehouse is a term that is used to identify a rental building that is used by a corporation, with that building located on property owned by that building’s owner. With this type of arrangement, the tenant of the warehouse will pay the rent to the landlord, based on the terms agreed in a leasing agreement. Making use of a field storage unit may be in the tenant’s best interest, especially if the need for space is only temporary.
With a field warehouse arrangement, a company will lease warehouse space from the landlord, usually under a lease agreement that identifies a specific monthly, semi-annual, or annual rate. The terms of the lease will also include a lease term, which can range from a few months to several years. During that time, the owner of the warehouse retains ownership, but allows the tenant to use the space for storage or other covered assets under the terms of the lease.
Choosing to lease a field warehouse is often an economical alternative to owning and operating facilities. This is especially true if there is a need for short-term storage that a company cannot handle with its existing storage buildings. For example, if a company needs to stockpile finished goods in anticipation of meeting customer demand several months down the road, leasing warehouse space from another company will cost less than attempting to build a new warehouse. to hold such assets in the short term. In addition to avoiding construction costs, renting a field warehouse also helps you avoid paying service charges and maintenance overheads. When the termination of the rental agreement occurs soon after the warehoused goods are shipped to customers, the company can relinquish control of the no longer needed facility and walk away without leaving an expense in progress.
There are companies that specialize in providing field warehouse space to other businesses that need the space for short periods of time or even extended periods. Typically, these companies will maintain facilities in areas that are convenient to transportation hubs and offer services like temperature control and 24-hour security, all for a flat monthly fee. Since this approach can save a lot of money compared to overall warehouse maintenance and management, this approach can be ideal for many customers ranging from importers to textiles and other types of manufacturing facilities.
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