How to Find the Best Warehouse Racking System

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When managing a warehouse, it&#;s important to carefully consider the racking systems that you install for inventory storage and retrieval. Your choice of racking system can allow you to maximize available storage space, take advantage of vertical space, increase worker efficiency, and minimize the incidence of workplace accidents.

What is Warehouse Racking?

The first purpose of a warehouse is storage. The second is the efficient retrieval of stored inventory for distribution. Racking refers to a group of inventory storage and retrieval systems designed primarily for palletized merchandise, although there are some notable exceptions to this rule, such as cantilever racking for oversized, long, or unusually shaped goods like lumber or steel rebar. The rack elevates the pallet off the ground, protects it from damage, and positions it in such a way that it may be easily retrieved by a forklift, automated retrieval system, or other tool.

Shelving, carton-flow racking, and other systems are also sometimes categorized as picking solutions to reflect the increased accessibility to unassisted workers.

Racking systems may be live, which means that they rotate stock, either by using passive forces, such as gravity and rollers, nested carts on inclined rails, or electrical systems.

How to Determine the Best Type of Racking System

When determining the most appropriate pallet racking system, your priorities should be the layout of your warehouse and the inventory you intend to store. How limited is the available floor space? If you operate a compact warehouse or want to make the most of every available square foot, you&#;ll need to consider aisle width and the density of the racking system.

Some designs reduce the number of aisles needed for loading and unloading; however, this also affects the stock rotation method. The two types of stock or inventory rotation that you should be aware of are FIFO and LIFO.

FIFO

In a FIFO system, the first inventory items that a worker loads into a racking system are also the first to be retrieved. This method of inventory rotation is ideal for goods that have limited shelf lives or need to be distributed soon after being stored.

LIFO

LIFO refers to a system in which the last inventory item that a worker loads into a racking system is also the first to be retrieved. This method of inventory rotation is mostly used with non-perishable goods, the distribution of which is not time-sensitive.

Inventory Type and Size

The inventory that you store also determines the type of racking system you need. Cantilever racking, for example, is not designed to store palletized inventory.

If you need your pallet racks to be available for storing and retrieving compact inventory items, non-palletized inventory, or non-standard size pallets, it may be necessary to install a type of decking.

You should account for the width, height, length, and approximate weight of the inventory that you intend to store. All these factors determine the most beneficial racking system for your warehouse.

Consult Stakeholders and Experts

As with automated storage and retrieval systems, you should consult internal stakeholders, including all management team members, regarding the ideal type of racking system to maximize the efficiency of your workplace. There are numerous considerations to consider, from the types of material-handling equipment your workers will be using to the proximity of your pallet racks to docking bays.

The height of your pallet racking system is determined, in part, by the clear height of your warehouse. The clear height is the distance between the floor and the lowest hanging object. This may be a light fixture or sprinkler system. You&#;ll need to know the clear height of your warehouse because when horizontal expansion becomes less feasible, vertical expansion becomes a necessity.

Do you currently use automated storage and retrieval systems or plan to in the future? The racking system you purchase should, for example, be compatible with any existing conveyor system that you employ.

Base/Floor Plates

According to the Rack Manufacturers Institute (RMI), every racking system needs to be anchored to the floor. Anchoring provides the stabilization necessary to resist seismic activity, forklift impact, and improper inventory loading. This requires bolting the base plates to the concrete floor.

Ease of Assembly and Strength

You&#;ll need to balance the ease of assembly against strength, load-bearing capacity, and structural stability to find the right warehouse racking system for your business.

Structural racking

Composed of welded steel components, the beams and uprights are bolted together. The primary advantage of structural steel racking is that it&#;s considerably stronger than roll form racking. As a result, structural racking is preferable for storing heavy loads. It&#;s also less susceptible to forklift impact.

For these reasons, structural racking is ideal for drive-in/drive-thru racking systems in which forklift traffic is high. However, the result of this manufacturing method is that structural racking is also more expensive, has a longer lead time, and is more difficult and time-consuming to install.

Roll Form Racking

Roll form racking is similar in assembly principle to rivet shelving. The beams have rivets or connectors that fit into corresponding teardrop-shaped holes in the uprights. Roll form racking is simpler to install than structural racking; however, it also offers less strength.

Roll form racking can be a cost-effective option for warehouses or inventory storage and retrieval systems. For example, forklift traffic and the risk of impact damage are relatively low. It&#;s also easier to adjust the height of roll form racks than structural racks, which is ideal for warehouses that handle a variety of differently sized products.

Upright Protectors

The uprights are vertical columns that provide structural support for the other components. Even for durable, heavy-duty pallet rack systems that are properly anchored, it&#;s necessary to reduce the extent to which forklifts can cause damage to the uprights of your racking system. Upright protectors reinforce the columns, providing an impact-resistant barrier or shield between the upright frames and forklifts.

Corrosion Resistance

Warehouse racking systems are available in various materials; however, racking systems made from alloy and carbon steels are susceptible to oxidation and rust. If your warehouse is humid in the summer or your racking systems are in refrigerated units, the risk is higher. The use of powder coating, galvanizing, or epoxy sealants can protect the steel against corrosion, preserving its appearance and structural integrity for years.

Aisle Space

One of the factors related to the layout of your warehouse is the available aisle space. Reducing the aisle width by using high-density storage systems can increase the capacity of your warehouse when neither horizontal nor vertical expansion is possible. However, if you employ forklift drivers, there must be sufficient space between racks to accommodate the forklift&#;s turn radius.

The less space there is to maneuver, the more likely your drivers are to collide with the uprights of racks. In addition, less aisle space can cause forklift drivers to load and retrieve inventory more slowly, compromising workflow. You need to account for these factors when evaluating your warehouse and racking systems.

Different Types of Warehouse Racking Systems

There are several different types of pallet rack, each designed for different stock rotation and retrieval methods, warehouse layouts, and inventory types which include:

Selective Pallet Racks

The most common warehouse racking system, the selective rack, is a FIFO system in which standard forklift trucks load and retrieve inventory from the front. Comparatively inexpensive, the selective racks allow for multiple forklifts to access the rack at the same time. Although selective racking allows immediate access to inventory, it&#;s also inappropriate for high-volume operations.

Drive-In and Drive-Thru Racks

Drive-in and drive-thru racks are configurable high-density warehouse storage systems designed to be accessible via forklift trucks. You can adapt the system to your business, choosing either LIFO or FIFO stock rotation methods.

In drive-in and drive-thru racks, the forklift driver enters the racking system to retrieve inventory and either exits by driving through or reversing or turning around, depending on the system. In addition to improving workflow and order fulfillment, these systems also protect inventory from damage.

Since these are high-traffic systems, they increase the risk of forklift collisions with the upright columns. Forklift collisions are one of the primary causes of racking system collapse. To minimize the risk of forklift collision, ensure there is sufficient aisle space between racks to allow forklift operators to maneuver properly. Also, consider installing shields to protect the uprights from impact damage. Ensure that your forklift drivers are properly trained.

In drive-thru pallet racking systems, the forklift driver can simply drive forward to exit the system. This is often more convenient and can reduce the risk of colliding with the pallet rack.

Cantilever Racks

The cantilever rack is designed to accommodate long, oddly shaped, and heavy inventory items. The cantilever rack has a base that stabilizes the system, anchoring it to the floor. The uprights are connected using horizontal braces and support the arms. The uprights are the vertical posts to which the bases, arms, and braces attach. The arms extend outward from the uprights and support the inventory.

The cantilever rack is the ideal storage solution for metal tubing/piping, lumber, bar stock, and other bulky items. However, cantilever racking systems are inappropriate for palletized inventory.

Push-Back Pallet Racks

Push-back racking is a LIFO pallet racking system in which the forklift operator loads pallets into nested carts that slide along inclined rails. When the forklift operator retrieves a pallet, the pallet behind it slides forward into the ready position. As inventory is loaded and retrieved from the same location, you can increase the storage density of your warehouse by eliminating the need for a separate aisle. Depending on the variety, the racks may be two to six pallets deep.

Pallet Flow Racks

Pallet flow racking systems are similar to push-back racking except that they&#;re designed for FIFO (first in, first out) inventory management. The inventory is loaded from the rear and slides forward to the retrieval aisle in a pallet flow system. While this requires two aisles instead of one with push-back racking, it&#;s also more appropriate for perishable or time-sensitive products.

Carton Flow Racks

Carton flow racking systems are functionally similar to pallet flow racks. Using a FIFO system, workers load carton flow racks from the rear. A series of rollers on inclined rails cause cartons, cardboard boxes, and other lightweight inventory items to slide forward toward the picking bay, where order pickers retrieve items.

Decking

As a warehouse racking system is typically designed for palletized inventory, using it for other purposes can require modification. If you need to use your racking systems to store cardboard boxes and cartons of varying sizes, you&#;ll need to install decking. In a selective pallet rack, the cross beams that provide support for pallets have spaces between them. For smaller inventory items, these spaces can cause goods to fall through. Decking comprises multiple options, depending on your budget and requirements:

Timber decking

Consisting of wooden slats that fit between beams, timber decking is cheap and readily available. However, wooden decking is less durable than many alternatives and is prone to cracking, water damage, and decay.

Steel decking

If you need a heavy-duty decking solution, steel panels form a shelf on the racking beams, providing additional support and strength. If you need to use racking outside, these steel panels can be galvanized or powder-coated for additional corrosion resistance.

Wire mesh decking

Lightweight and relatively inexpensive, wire mesh is relatively strong and provides long-term durability. If you need to store temperature-sensitive items and control moisture levels, the wire-mesh design promotes more efficient airflow. The increased air circulation reduces dust accumulation and allows light to penetrate more effectively for added visibility.

Inspections

As part of any warehousing operation, it&#;s critically important to inspect your racking systems periodically for damage to uprights, beams, braces, fasteners/attachments, decking, and base plates. This is also necessary when evaluating whether you need to upgrade your current racking systems.

When inspecting racking systems under low-light conditions, always wear a reflective vest so that forklift drivers can see you. You&#;ll need a flashlight for proper inspection where overhead lighting is unavailable. A laser level can be useful for determining the verticality of the uprights.

In addition, it&#;s essential that you train your workers in how to correctly load and unload pallet racks, ensuring that the weight is evenly distributed and the decking doesn&#;t support the weight instead of the beams. Every racking system has a weight capacity with which your staff should comply at all times. Exceeding the manufacturer&#;s recommended weight capacity can cause serious workplace injury and inventory loss.

Boost Warehouse Productivity With the Right Racking System

At Shelving + Rack Systems, Inc., we take industrial storage and retrieval systems for warehouses and other businesses seriously, offering a wide variety of systems for every application. Everything we sell is manufactured in the United States.

Give us a call, and we&#;ll help you select the best type of racking system for your warehouse, taking into account all relevant factors, from floor space and clear height to inventory type and stock rotation method.

FAQs

What is the difference between shelving and racking?

While both improve storage and organization, there is a crucial difference between shelving and racking systems. Although sometimes used interchangeably, shelving systems are designed to be accessible to human order pickers and other personnel and store various types of inventory.

Racking systems are designed, with some exceptions, to store palletized inventory for retrieval by workers operating material handling equipment, such as forklift trucks.

What is the best racking system for a warehouse?

This depends on a variety of factors that you&#;ll have to consider carefully. Evaluating your warehouse, you&#;ll need to provide detailed information to the racking supplier or manufacturer, who can advise you on the most applicable system for your needs.

For more Self-supporting warehouseinformation, please contact us. We will provide professional answers.

This includes your preferred stock rotation/inventory management system, the available floor space, the clear height, and other factors. It also depends on budgetary constraints and expected ROI.

Why Finding the Right Warehouse Space Matters

Warehouse space is the backbone of many businesses. For manufacturers, wholesalers, distributors, ecommerce companies, and more, the warehouse is where inventory is stored, picked, packed, and shipped. Having the right warehouse space can make or break your operations and bottom line.

In this guide, we&#;ll cover everything you need to know about finding and leasing warehouse space, including:

• Where to find available warehouse spaces online
• Understanding warehouse space classifications
• Key factors in choosing a warehouse
• Common lease terms
• Negotiating your lease
• Building out your space
• Zoning and permits
• What types of businesses need warehouse space

With the right information and preparation, you can find a warehouse space that aligns with your business needs, supports efficient operations, and sets you up for success. Read on to learn how to navigate the warehouse leasing process.

Where to Find Warehouse Space Online

The internet has made it much easier to find available warehouse spaces for lease without relying solely on brokers. Here are some of the top sites that list warehouse spaces for lease:

• PeerStorage &#; This is an online marketplace for local businesses to find and lease warehouse spaces online. PeerStorage is a startup looking to disrupt the commercial storage industry.
• Loopnet &#; This is one of the largest commercial real estate listing sites, with over 5 million properties listed. You can filter specifically for warehouse spaces in your desired location and size range.
• Crexi &#; Similar to Loopnet, Crexi has a large database of commercial real estate listings. You can search for warehouse spaces and filter by amenities like ceiling height, dock doors, and more.
• CommercialSearch &#; This site lets you search for warehouse spaces across multiple listing platforms. It aggregates listings from Loopnet, Crexi, CoStar, and more.
• REjournals &#; This site provides listings tailored for the industrial real estate market. It focuses specifically on spaces like warehouses, distribution centers, and flex industrial properties.
• 42Floors &#; This commercial listing site has an easy-to-use interface. You can specify you are looking for a warehouse and filter listings.
• Commercial Brokers Websites &#; Many commercial brokerages list warehouse spaces for lease on their own websites. Browsing sites of top local brokerages can reveal listings not posted elsewhere.

For certain industries, there are more niche warehouse listing sites. For example, WineStorage.com focuses specifically on listing temperature-controlled warehouse spaces for wineries. There are similar niche sites for cold storage warehouses and spaces suited for ecommerce fulfillment centers.

Understanding Warehouse Space Classifications

Warehouse spaces are typically classified as Class A, Class B, or Class C. This classification system helps tenants understand the general condition and amenities of the warehouse space.

Class A

Class A warehouses are top-tier spaces with the newest buildings and the widest range of amenities. Key features of Class A warehouse spaces include:

• Modern or recently renovated building
• High ceilings (28 feet or higher)
• Advanced fire suppression systems
• Multiple dock and drive-in doors
• Trailer/truck parking and staging areas
• Expansive yard space
• Newer mechanical and lighting systems
• Office buildout options

The advantages of Class A warehouse spaces are the excellent condition of the facilities and the availability of any desired amenities. The downside is that these spaces command the highest rental rates in the market. Class A is best suited for companies that need premier facilities and have the budget to support the higher costs.

Class B

Class B warehouse spaces are a mid-range option, with facilities that are older but still functional and well-maintained. Typical features of a Class B warehouse include:

• Building is 15-30 years old
• Ceiling heights of 24-28 feet
• Good condition dock and drive-in access
• Adequate yard space
• Lighting and mechanical systems in working order
• Limited office buildout options

Class B offers reasonably modern facilities at a more affordable rental rate than Class A. These spaces work well for companies that want good functionality without paying a premium for luxury features. The tradeoff versus Class A is that some amenities may be missing or limited in scope.

Class C

Class C warehouse spaces provide basic warehouse functionality at the lowest price point. These facilities are older buildings that have limited amenities but offer affordable space. Some characteristics of Class C warehouses are:

• Buildings are typically over 30 years old
• Ceiling heights under 24 feet
• Minimal dock doors and limited yard space
• Older mechanical/electrical systems
• Very limited office space, if any

The advantage of Class C is clearly the low rental rates. The compromises are that the buildings, systems, and amenities are dated. Class C works best for companies that just need basic warehouse space on a tight budget. But operations may be hampered by the lack of ideal facilities.

Key Factors to Consider When Choosing a Warehouse

When searching for warehouse space, there are several key factors you&#;ll want to evaluate to ensure the facility fits your business&#;s needs. Some of the most important considerations include:

Location/Proximity

Think about where your suppliers and customers are located. You&#;ll want your warehouse to be in relatively close proximity to minimize transportation costs and delivery times. Being near major highways, rail lines or ports can be advantageous depending on your logistics operations.

Loading Docks/Drive-In Access

Look at how many loading docks and drive-in doorways the warehouse has. Having multiple loading bays will make it easier to move inventory in and out efficiently. Some businesses may require drive-in access for unloading directly inside the warehouse.

Power and Lighting

Ensure the warehouse has adequate power capabilities and lighting for your operations. Things like conveyor systems, heavy machinery and computer systems require strong electrical systems. Forklifts need ample lighting to operate safely. Look for warehouses wired for at least 200 amp electrical service.

Ceiling Height

Warehouses should have at least 24-30 feet of clear ceiling height to accommodate pallet racking systems and forklifts. Some operations require taller ceilings for stacking inventory or using cranes for moving materials. Clear height is essential for maximizing storage density.

Other Amenities

Look for modern warehouse facilities offering amenities like sprinklers, air conditioning, loading dock seals and industrial grade flooring. These features enhance safety, comfort and durability for daily operations.

Evaluating factors like location, layout, power and ceiling height will help you find the ideal warehouse for your business&#;s storage and distribution needs. Prioritize must-have features before signing a lease.

Common Warehouse Space Lease Terms

When negotiating a warehouse lease, you&#;ll want to pay close attention to the lease terms. These will dictate everything from how long you&#;re committing to the space to how much you&#;ll pay each month. Here are some of the key lease terms to understand:

Length of Lease Term

Warehouse leases are typically longer term than office leases, often 3-5 years, to account for the larger capital investments required to build out the space. Make sure you negotiate enough time to recoup your investment. You may be able to negotiate a shorter initial term with options to renew.

Triple Net vs Gross Leases

With a triple net lease, you as the tenant pay a share of the property taxes, insurance, and maintenance costs for the building in addition to rent. This passes on some risk to you but gives you more control. Gross leases fold those costs into the rent, so it&#;s simpler but you have less control.

Rent Increases

It&#;s common for warehouse lease rates to increase 3-5% annually to account for inflation. Try to negotiate a fixed rate increase rather than leaving it open-ended. You may also be able to negotiate a few months free rent at the start in exchange for accepting the increases. Understand the landlord&#;s increase rationale before signing.

Negotiating Your Warehouse Lease

When negotiating a warehouse lease, you have an opportunity to secure favorable terms and concessions from the landlord. Here are some tips:

• Aim for a longer lease term &#; Landlords prefer long leases, so negotiating a 5+ year initial term can give you leverage to ask for concessions. You also lock in the rental rate for longer.
• Request a rent abatement period &#; Ask for 1-2 months of free rent at the beginning of the lease to offset your moving and buildout costs.
• Negotiate the base rental rate &#; Research market rents in the area to support negotiating a lower per square foot base rate. Rental rates can vary greatly depending on location.
• Get tenant improvement allowances &#; Landlords may offer a budget for you to build out the space. Get any promised allowance in writing.
• Limit operating expense increases &#; Try to cap the pass-through of increases in property taxes, insurance and maintenance fees. Request exclusions for major capital improvements.
• Secure an option to expand &#; Having an option to lease adjacent space as your business grows is valuable. Make sure the option terms are clearly defined.
• Limit personal liability &#; Request your lease is signed by your business entity, not you personally, to limit personal liability.
• Negotiate favorable exit terms &#; Make sure you can exit the lease if your business needs change, by negotiating a termination option.
• Hire a broker &#; Seasoned commercial brokers have experience negotiating warehouse leases in your market. Their services are usually free for tenants.

With preparation and research, you can negotiate a warehouse lease that meets your business goals and sets up your company for success.

Building Out Your Warehouse Space

Once you&#;ve signed your warehouse lease, it&#;s time to build out the space to meet your business needs. Carefully planning the layout and investing in key improvements upfront will maximize efficiency and operations.

Layout Considerations

• Think about workflow and create designated zones for receiving, storage, picking/packing, shipping, offices, etc. Segregate zones with pallet racks or safety markings.
• Install pallet racks, shelves, and storage systems tailored to your inventory. Consider the size, weight, and turnover rate of products.
• Evaluate lighting, HVAC, fire suppression, and other systems. Lighting should be LED for efficiency.
• Add offices, breakrooms, and bathrooms to meet employee needs. Kitchenettes promote collaboration.
• Plan for future growth by leaving room to expand storage, add new equipment, increase staff, etc.

Budgeting for Improvements

Tenant improvements like racking, lighting, and offices can be a major upfront cost. Be sure to budget appropriately and understand what the landlord covers versus the tenant.

• Negotiate an allowance for tenant improvements in your lease to offset costs. Ask for a higher allowance if committing to a longer lease.
• Get quotes from contractors early on major improvements. Costs add up quickly.
• Focus first on improvements that will maximize efficiency and growth. Add aesthetic upgrades later.
• Check if there are tax incentives or credits to offset renovation costs. Some apply to energy efficient upgrades.

With careful planning and budgeting, you can design a warehouse layout aligned to your business processes and goals. Investing in the right improvements from the start will optimize operations for years to come.

Understanding Warehouse Zoning and Permits

Before signing a warehouse lease, it&#;s crucial to research the property&#;s zoning designation and understand any permits you may need for your intended use.

Industrial and warehouse properties are usually zoned as light industrial, heavy industrial, or mixed use. Light industrial zoning allows for manufacturing, processing, assembly, and logistics operations that don&#;t produce significant noise, traffic, or emissions. Heavy industrial zoning permits more intensive industrial activities. Mixed use zoning allows for a blend of commercial, industrial, and sometimes even residential uses.

Check with your local planning department to verify the zoning for any warehouse space you&#;re considering. Make sure it allows for your planned operations. You may need to apply for a conditional use permit if your activities don&#;t precisely match the designated zoning.

In addition to zoning, most warehouse renovations, build-outs, and infrastructure upgrades require permitting. Common permits include:

• Building permits for structural modifications, new construction, or renovations
• Electrical permits for installing new circuits, lighting, outlets, etc.
• Plumbing permits for bathrooms, kitchens, fire suppression systems, etc.
• Mechanical permits for HVAC systems
• Fire safety permits for sprinklers, alarms, etc.

Submit your plans to the building department early in the process to identify required permits and avoid delays. The leasing agent for the warehouse property can also provide guidance on typical permits for that jurisdiction. With proper zoning and permitting, you can ensure your warehouse space complies with local regulations.

Businesses that Need Warehouses

Warehouses provide essential storage and distribution capacity for many types of businesses. Here are some of the key industries that rely on warehouse space:

Manufacturers

Manufacturing companies need warehouses to store raw materials, components, and finished products. They require space for receiving, inspection, storage, kitting, order fulfillment, and shipping. Manufacturers often need a significant amount of warehouse space with features like wide loading docks, high ceilings, and material handling equipment.

Distributors

Distributors act as intermediaries between manufacturers and retailers/end customers. They buy products in bulk from manufacturers and sell smaller quantities to retailers or businesses. Distributors need warehouse space to receive large shipments, break them down into smaller orders, and redistribute. They require space for inventory storage, order processing, packaging, and shipping.

Ecommerce Companies

Ecommerce retailers need fulfillment centers to store inventory and process online orders. They require space for receiving stock, picking/packing customer orders, and shipping. As ecommerce sales continue to rise, these companies need more and more warehouse capacity to meet demand. Their facilities are optimized for small, individual orders rather than bulk logistics.

In summary, manufacturing, distribution, and ecommerce companies all rely heavily on warehouse space to store inventory and facilitate order fulfillment. The amount, type, and layout of space depends on the specific inventory volumes and order processing needs. But warehousing is a critical link in the supply chain for these industries.

Conclusion

When searching for warehouse space to lease, it&#;s important to consider your business&#;s specific needs and find a space that aligns with your requirements, budget, and future growth plans. Key factors to evaluate include the warehouse location, size, layout, condition, access, and amenities. Be sure to understand common leasing terms like triple net leases, CAM fees, and security deposits before signing a lease.

Negotiating the best deal possible on your warehouse space involves being prepared with information on current market rates and having flexibility on terms like lease length and build-out provisions. Partnering with an experienced real estate broker can provide valuable guidance during the process. Once you&#;ve secured warehouse space, you can focus on designing and building out the interior to maximize efficiency and meet your operational needs.

With the right preparation and research, you can find an ideal warehouse facility to support your business&#;s storage, distribution, manufacturing, or other operational needs. The time is now to start your search and claim warehouse space that will enable your company&#;s growth and success. Reach out to brokers, search online listings, and tour potential spaces today to get the process started. With persistence and patience, you&#;ll find the perfect warehouse for your needs.

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