Two sheds can look identical and work nothing alike.
One saves you a forklift.
The other quietly costs you a whole shift every week.
Choosing warehouse space for lease comes down to matching the building to how your stock actually moves, not to the rate per square metre on the flyer. Australian businesses are on the move: national net absorption topped 1.4 million sqm in the first half of 2026, more than double the second half of 2025, on CBRE figures. The ones who pick well measure their pallets first and shop second.
How Do You Work Out How Much Space You Need?
Count pallets, then look up. Say you hold 1,000 pallets and rack them five levels high. That is 200 floor positions, roughly 260 sqm of racking footprint. Aisles, pick faces, inwards goods and dispatch typically swallow another 35% to 45% of the floor, which lands you near 500 sqm of working area before offices. Height is the cheap part of the deal, because you pay rent on floor area, not on air. Build in room to grow as well, because moving twice in five years is the expensive option.
Which Location Rules Should You Follow?
Pick the site that shortens your busiest run, not the one with the nicest reception.
- Stay within 30 minutes of your heaviest delivery cluster
- Check the distance to port or rail if you import containers
- Look at where your staff live, since labour supply drives your roster
- Read council truck curfews before you commit to night dispatch
- Drive the route at 7am on a weekday, never on a quiet Sunday
What Building Features Change Your Running Costs?
Clearance height, slab rating and dock setup do most of the work. Here is how the physical spec translates into what you pay and how you operate.
| Feature | Older shed | Modern estate | Why it matters |
| Clearance height | 6m to 7.5m | 10m to 13.7m | More pallets per square metre of rent |
| Column grid | Tight, irregular | Wide and regular | Cleaner racking runs, fewer wasted bays |
| Loading | On grade doors | Recessed docks and levellers | Faster truck turnaround |
| Roof | Sheet only | Solar ready with LED lighting | Lower power bills each month |
| Hardstand | Rigid truck depth | B-double turning circle | No reversing off a public road |
What Should You Negotiate Beyond the Rent?
The incentive package, first. Western Sydney incentives hit a record near 22% in 2026 and Melbourne sits around 21.2%, so a headline rent of $220/sqm can settle a good deal lower on an effective basis. After that, chase a fixed annual review of 3% to 4% rather than a CPI link, lock in an option term so you control the renewal, and get the fit out contribution written as a dollar figure instead of a promise. A landlord contribution toward racking, lighting or dock levellers is real money that never appears in the rent column.
Why Do Some Sheds Sit Empty Longer Than Others?
Because vacancy has clustered in older prime and secondary buildings while super prime keeps leasing. CBRE research points straight at this split, with Melbourne availability dominated by older stock even in precincts showing plenty of space. For a tenant with a tight budget, that clustering is an opening. An older shed with solid height, a healthy slab and good truck access can be sharply priced, and the landlord is often ready to fund upgrades to get you across the line. Ask for new lighting, a repainted floor or an extra roller door as part of the deal.
