Bae 5 Tracker

Got it Handled

What are the benefits of a Warehouse Mezzanine?

Across the West, warehouse space is at a premium while industrial vacancy is at an all-time low.  If you are approaching your warehouses capacity limits, it might make more sense to build a mezzanine level rather than to relocate your operation. Raymond Handling Concepts Corporation is here to help you make an informed decision.

There is more than one billion square footage of warehouse space in Southern California, yet almost all of it is full. Vacancies are now the lowest they’ve ever been while the rate for rent is at an all-time Mezzanine | Warehouse | Wildeckhigh and is continuously increasing.

This is not just a problem in California: since 2012 warehouse rents have increased by an average of 5.6% every year across the United States.

Here is the good news though! A thriving economy is driving growth in almost all sectors. The bad news is that as your business grows beyond your current storage capabilities, you may get caught in an unprecedented capacity crunch.

What can you do?  Look skyward.  You can build additional vertical capacity by using a mezzanine system. Mezzanines can take advantage of the space between the ceiling, the tops of existing racking, workstations, and allow you to occupy as much of the cube as possible.

Warehouse mezzanines are becoming more and more popular as companies try to maximize their space utilization. These platforms offer numerous advantages that adding a warehouse or completely relocating would not, including:

No Construction Delay: building new warehouses can take years of planning. Typical development and construction projects are prone to zoning issues, permit delays, weather delays and so on. Mezzanine construction can happen in a matter of weeks, and the chances of running into unexpected delays are almost nonexistent.

Minimal Disruption: moving into a new location can be incredibly disruptive to your business. Moves often occupy days or sometimes even weeks of down time. With many mezzanine systems, you can continue business as usual and have installation work completed in off hours.

Operational Cost Stability: If you’ve got a warehouse, you’re already paying for heat/AC, lighting and taxes. When you add a location, those costs increase substantially. If you relocate into a larger facility, your expenses will climb as well. With a mezzanine system your operational costs hardly change at all.

Tax Treatment: On a federal and state level, mezzanines are subject to a 7 year capital equipment depreciation instead of a 31 year depreciation schedule for permanent structures.  At a local level, your square footage does not increase, meaning that in most areas your property taxes don’t increase.

Employee Morale: quite often, moving a warehouse can mean significant changes for employees. New warehouse space is often far outside of city centers, which can mean shifting commutes or even different taxation for workers. Mezzanine solutions allow your workers to stay in place.

Versatility and Customization: mezzanine systems are modular, meaning you can add and remove components as your business changes. Need to add offices or conference rooms?  You can buy office modules just for that purpose. Need more storage space? You can add floor space.  Virtually any requirement can be addressed with a mezzanine system.

Mezzanine solutions are a smart, cost effective alternative to adding or moving locations. All warehouse operators should consider a mezzanine strategy when dealing with warehouse capacity constraints.  To learn more about mezzanines, call a material handling specialist at Raymond Handling Concepts today!