If you own an empty warehouse–or have unused space in the warehouse that you currently operate your business out of–you may be leaving a lot of money on the table.
Empty warehouse space your business isn’t using can be a goldmine and a reliable ancillary revenue channel. If you have an entire unused warehouse that you’re looking to monetize, even better. The more space you have, the more rental opportunities you have (and the more customers you can service).
So, what exactly should you do with this warehouse space? You have a lot of options.
That’s the point of this guide: to show you several of the most profitable business ideas available to you. That way, you can take that unused space and turn it into revenue.
11 Profitable Warehouse Business Ideas
There are lots of ways to make additional money using your extra warehouse space, but not all are equally as profitable.
Here are 11 of the most profitable warehouse businesses:
#1: Office Space
Warehouses are the perfect office space. They’re spacious, boast high ceilings, are typically configured in open-concept layouts, and come with parking (if they’re located in a business center).
But, more importantly, turning your warehouse into an office space is a highly profitable venture. Rates usually range anywhere from $3-6 per square foot per month if you rent the entire space out at once.
Alternatively, you can reconfigure the space yourself, bring in new office equipment, and rent it out as a co-working space to multiple tenants and collect anywhere from $500-800 on average per renter, per month. However, keep in mind that this option requires active management and a decent time investment.
#2: Event Center
Warehouses are perfect for small events, parties, and even local concerts.
You can rent your empty warehouse out for anywhere from $1-3 per square foot, making it incredibly profitable, depending on its size.
One thing to keep in mind: you’ll need to clean up (and spruce up) your warehouse space if you want to attract renters. A deep clean of your warehouse and a mock photoshoot showing off what you can do with the space should do the trick. If you skip these steps, you’re not likely to attract many event planners in the beginning.
#3: Parking Garage
Depending on the location of your warehouse, it could be just what people are looking for– and something they’ll pay handsomely for.
In major cities, parking is sparse and inconvenient. By offering your empty warehouse as a parking garage, you can collect parking fees on a regular basis without having to do virtually anything.
All you need is to decide how you’re going to collect payments, plus hire a security guard to watch the lot during warehouse business hours.
You could also consider running the lot as a private parking center where customers pay a yearly membership to get access.
#4: Self-Storage Space
Opening your warehouse to renters in need of storage space is a simple solution to unused warehouse space.
Using a platform like Neighbor’s peer-to-peer marketplace, you can list your warehouse space, and the entire management process will be set up for you. Neighbor will connect you with renters looking to store their vehicles or their business inventory in your warehouse space. Before long, you’ll be able to collect rent each month.
Depending on the size of your warehouse, you could collect a sizable chunk of money each month using your warehouse as a storage facility. The best part? There will be virtually zero upkeep.
#5: Fitness Center
Whether to lease out the space for another business or to open your own, a large enough warehouse space can be the perfect place for a fitness facility.
The main thing you’ll need to keep in mind is that your warehouse’s location will likely determine how much walk-in traffic you get vs. how much you’ll need to advertise online.
If your warehouse is deeper in a business district away from major streets, you’ll need to be smarter about how you advertise to get the word out about your facility.
#6: MMA Training Gym
Similar to a fitness center, MMA training gyms and other martial arts centers can oftentimes be found in warehouses and other large facilities that are adapted for use.
The main difference between a fitness center and an MMA gym is the time structure. MMA centers are often structured around classes and training sessions and so can be open during set hours (and closed during others). Typical fitness centers are expected to be open most hours of the day.
If you have an empty warehouse space you’re looking to rent, adapting it into a kickboxing or MMA gym could be the way to go, especially if you have a passion for MMA.
#7: Art Exhibit Venue
Believe it or not, your warehouse could be used as an art exhibit.
Art exhibits are traditionally held just about anywhere– outside, in an office building, a museum, or even a warehouse.
If your warehouse is located in a major city center, you could be raking in a hefty profit every month–that is, if you can position your warehouse as a special exhibit center for artists and organizations.
Similar to what we suggested with the event center, however, make sure to do a mock photoshoot. By taking pictures of the space when it’s decorated, as if an art exhibit is about to take place, event planners will see the space’s potential. These photos may even be the deciding factor and convince local event planners to rent your warehouse space.
#8: Indoor Skatepark
Skaters have often been shunned from skating on public property at places such as parks and outdoor malls. Hence, the skatepark was born.
You’ll occasionally see smaller skateparks connected to city parks. However, larger skateparks with ramps and half pipes tend to be located in warehouses because they’re the only type of facility with enough space (and height).
If you’re a skater at heart (or you’re simply familiar with your local market and you know skating is big near you), turning your warehouse into a skatepark could be highly profitable. Not only can charge per entry, per day, but many customers will come back on a regular basis.
#9: Indoor Climbing Gym
Indoor climbing is more popular than ever. But you’ll need a large space to build the kind of climbing walls typically seen in climbing gyms.
That makes an indoor climbing gym yet another great option for using your warehouse space.
And similar to a fitness or MMA gym, your warehouse can be located just about anywhere. Customers are typically willing to drive a small distance for a good climbing gym, as these facilities are limited.
If there isn’t already a good climbing gym in your area, or you simply have a passion for indoor climbing, consider converting your warehouse into a climbing gym.
#10: Boat and RV Storage Facility
Boat and RV storage businesses can be highly profitable.
The only issue?
You need a lot of space to store boats and RVs, so it takes a big initial investment to build the facility that will store them.
That’s your advantage. You already have the space, whether it’s for boats or RVs, or both.
This is a great investment opportunity because RVing and boating are highly seasonal, meaning recreational vehicle owners are used to putting their vehicles away for long periods. That means many months of collecting rental payments.
#11: Recording Studio
While you don’t need an entire warehouse for a recording studio, warehouses are great because of their natural insulation.
If you have a decent section of your warehouse available, especially a section with office space, you can likely build a full recording studio.
You will need to invest in recording equipment and soundproofing the space, but if you’re a musician yourself, you’ll likely find the investment well worth it (far beyond the revenue you’ll generate from renting it out).
Start Generating Revenue from Your Warehouse Space
There are countless businesses you can run from a warehouse and even more ways to make money using your extra warehouse space.
When evaluating what business idea is right for you, factor in more than just demand and profit–also consider the initial time and monetary investment to get your business up and running.
The easiest and most direct way to profit from your extra warehouse space is to rent it out to others looking for self-storage, whether it be for their inventory, smaller personal belongings, vehicles, a boat, or something else altogether.
With a peer-to-peer marketplace like Neighbor, you can safely and easily find renters who will pay you to use your space.
Learn how to become a Neighbor host here and find out how to generate passive income with your extra warehouse space.
