What Is a Field Warehouse?
A field warehouse is a term that is used to identify a rented building that is used by one company, with that building located on property owned by the owner of that building. With this type of arrangement, the tenant of the warehouse will pay rent to the property owner, based on the terms agreed upon in a leasing agreement. Making use of a field warehouse can be in the best interests of the tenant, especially if the need for the space is only temporary.
With a field warehouse arrangement, one company will rent the warehouse from the owner, usually with a lease agreement that identifies a specific monthly, semi-annual, or annual rate. The terms of the lease will also include a duration for the contract, which may range anywhere 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 activities that are covered in the terms of the lease agreement.
Choosing to rent a field warehouse is often a cost-effective alternative to owning and operating facilities. This is especially true if there is the need for short-term storage that a business cannot manage with its existing storage buildings. For example, if a company needs to amass finished goods in anticipation of meeting customer demand several months down the road, renting warehouse space from another company will cost less than attempting to construct a new warehouse to hold those goods in the short-term. In addition to avoiding construction costs, renting a field warehouse also helps to avoid paying utility costs and general maintenance expenses. By timing the termination of the rental agreement to occur shortly after the stored goods are shipped to customers, the company can relinquish control of the facility that is no longer needed, and walk away without leaving behind an ongoing expense.
There are companies that specialize in providing field warehouse space to other businesses that need the space for short periods of time or even for extended periods. Typically, these companies will maintain facilities in areas that are convenient to transportation hubs and offer amenities like temperature control and around the clock security, all for a flat monthly fee. Since this approach can save a great deal of money over maintaining and managing warehouses in general, this approach can be ideal for many clients ranging from importers to textile and other types of manufacturing plants.
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