Small office space for rent isn't always the best solution. Learn the hidden costs of growing from home and why co-warehousing offers better value for scaling entrepreneurs.
co-warehousing | 2025-04-24
By Elevator, a Co-Warehousing Community
Small office space for rent seems like the logical next step when outgrowing a home office, but for product-based entrepreneurs, the real costs extend far beyond monthly rent. Smart business owners are discovering that staying home too long—or choosing traditional office solutions—creates hidden expenses that often eclipse the investment required for comprehensive workspace solutions like co-warehousing.
Sarah Ohrt, who recently transitioned her business to Elevator's co-warehousing facility, knows these hidden costs firsthand. "We rented space here while updating our warehouse in Waterloo, and it was the PERFECT solution for our short-term needs," she explains. Her experience underscores a critical reality: home-based operations often create financial drains that entrepreneurs only recognize after they've moved to professional facilities.
The hidden costs of prolonged home-based operations typically manifest in several critical areas:
1. Opportunity Costs: Revenue Left on the Table
When entrepreneurs operate from home, they often unknowingly limit their business potential:
One entrepreneur at Elevator's Omaha location had previously turned down wholesale orders that would have doubled her revenue because she lacked adequate fulfillment space. After securing appropriate facilities, she secured deals with three regional retailers within months.
2. Operational Inefficiencies: Time is Money
Traditional small office space for rent addresses workspace needs but fails to solve operational challenges faced by product-based businesses:
"Working from home sounds amazing until you're actually doing it long-term," notes Joseph Kenney, founder of 316 Strategy Group. "There were constant distractions—kids, pets, laundry that needed folding. Moving into Elevator gave us this clear boundary between work and home. Our team's focus improved dramatically."
3. Personal Costs: When Business Invades Life
The impact of home-based operations extends beyond finances to personal well-being:
"I was stepping over inventory to get to my coffee maker," one entrepreneur recalls. "My husband started calling our garage 'the warehouse district.' I was growing, sure, but my home was disappearing around me."
While securing small office space for rent might seem like the natural progression from home-based operations, this solution often creates its own set of challenges for product-based businesses:
1. Fragmented Operations
Traditional office rentals typically provide administrative space without addressing inventory and fulfillment needs, forcing businesses to:
2. Fixed Costs Without Flexibility
Small office space for rent usually involves:
3. Limited Scalability
Traditional office leases lock businesses into specific space configurations:
Co-warehousing addresses the limitations of both home operations and traditional small office space for rent by providing integrated solutions designed specifically for product-based businesses.
"Our warehouses/flex units are perfect for businesses with physical products or creatives looking for the perfect studio space," explains Emiliano Lerda, CEO of Elevator. "With a wide variety of size options available, our warehouse/flex units offer the ideal space to efficiently pack, store, and seamlessly run your operations."
1. Integrated Operations Under One Roof
Unlike small office space for rent that separates administrative and operational functions, co-warehousing provides:
"The flexibility of month-to-month rentals made the transition seamless," notes Sarah Ohrt about her experience with Elevator. This operational flexibility creates significant cost advantages over traditional office arrangements.
2. Variable vs. Fixed Expenses
Co-warehousing transforms major fixed costs into variable expenses that scale with business needs:
One seasonal business at Elevator scales from 200 to 800 square feet during peak seasons—an arrangement impossible with traditional small office space for rent.
3. Built-in Infrastructure and Community
Co-warehousing facilities provide essential business infrastructure that traditional office spaces lack:
"Levi even took time out of his busy schedule to help us with business planning, which was above and beyond!" Ohrt notes, highlighting the additional value beyond physical space.
Consider the comparative costs for a growing e-commerce business:
Traditional Path (Home + Small Office Space for Rent):
Co-Warehousing Solution:
Beyond these direct savings, the operational efficiencies and growth opportunities create additional financial advantages. 316 Strategy Group closed $150,000 in new business within 60 days of moving into Elevator's Omaha location—all from connections made within the building.
The transition from home or traditional small office space for rent to co-warehousing doesn't just solve space problems—it catalyzes business growth:
1. Operational Efficiency Gains
Businesses report measurable improvements after transitioning to co-warehousing:
2. Revenue Expansion Opportunities
The infrastructure and community of co-warehousing facilities enable business growth:
3. Strategic Capital Allocation
By eliminating unnecessary fixed costs, businesses can invest in growth:
For entrepreneurs evaluating their next move, several indicators suggest co-warehousing offers better value than traditional small office space for rent:
Business Indicators:
Financial Indicators:
Personal Indicators:
"The community they've built is perfect for any entrepreneur or business looking to scale!" Sarah Ohrt shares, emphasizing that the value extends beyond mere space.
The evolution from small office space for rent to comprehensive co-warehousing solutions represents more than a real estate trend—it reflects a fundamental shift in how entrepreneurs approach business infrastructure.
"We're not just building spaces; we're building ecosystems where small businesses can thrive," explains Shannon Lerda, Co-Founder and President of Elevator.
This ecosystem approach addresses the full spectrum of entrepreneurial needs:
As more entrepreneurs recognize the limitations of both home-based operations and traditional small office space for rent, co-warehousing continues to gain momentum. Industry analysts project the flexible warehouse market will expand by 23% annually over the next three years, driven by businesses seeking comprehensive solutions rather than piecemeal approaches.
For product-based entrepreneurs currently weighing their options, the choice increasingly tilts toward integrated solutions that address all aspects of business operations. The question is no longer simply "Where can I find small office space for rent?" but rather "What environment will best support my business's growth trajectory?"
Shannon Lerda summarizes the shift: "The traditional warehouse lease is becoming increasingly impractical for today's agile businesses. Co-warehousing isn't just a transitional solution—it's a fundamental rethinking of how businesses manage physical space in the e-commerce era."
For entrepreneurs ready to escape the hidden costs of home operations without committing to restrictive traditional leases, co-warehousing offers a middle path—one that combines operational efficiency, financial flexibility, and growth potential in a model designed specifically for modern business needs.
As Elevator continues expanding across the Midwest—now operating in Omaha and Des Moines with Kansas City opening in late 2025—more entrepreneurs gain access to workspace solutions that eliminate hidden costs while accelerating growth.
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To learn more about how co-warehousing can eliminate the hidden costs of home-based operations while providing advantages over traditional small office space for rent, visit elevatorspaces.com or book a tour at one of Elevator's growing locations.