We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is a Field Warehouse?

Malcolm Tatum
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

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.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.