Warehouse leasing rates soared during the pandemic, and they’re not coming down much, even as supply chain issues abate and demand for space moderates, according to a recent story in The Wall Street Journal.

Commercial real estate services firm Cushman and Wakefield calculates average asking rent for warehouse space across the U.S. was $10.13 per square foot in the fourth quarter of 2024. That’s up 4.5% from 2023 and 61% from late 2019 as the outbreak of COVID-19 was spreading.

The pandemic’s supply disruptions and surge in e-commerce sales made relatively high rates for warehouse rents the standard. But even with COVID largely behind us and competition for space cooling (vacancy rates are over twice what they were two years ago), prices are staying elevated.

The reason, according to the Journal article, is a cutback in new warehouse construction. Whatever it is, customers are looking for alternatives.

One solution is storage trailer rental. Trailer rentals provide a highly flexible and cost-effective way to expand storage capacity. Trailers are mobile, which means they can be moved to different locations as needed. If your business requires seasonal storage or fluctuating inventory levels, trailers offer a temporary solution without long-term commitments. You can rent trailers for as little or as long as you need, and when your storage needs change, you can easily adjust.

There are also cost advantages. Trailers for rent have significantly lower upfront costs compared to leasing a warehouse. Depending on your part of the country, trailers typically rent for $100 to $250 per month. As most trailers are 530 square feet, that comes out to about $2.25 to $5.65 per square foot over the course of a year – or 50 to 75 percent less than standard warehouse leasing.

Plus, warehouse lease rates (like the $10.13 per square foot average cited by Cushman and Wakefield) do not typically include the renter’s share of utilities and common area maintenance.  These are add-ons. Obviously, these extras do not apply to storage trailers.

Here is a summary comparison of the benefits of renting storage trailers versus leasing warehouse space.

Ultimately, the choice between trailer rentals and warehouse leasing depends on your business's unique needs. If your priorities are flexibility and cost-efficiency, especially for short-term storage, trailers are almost certainly the better option.