Originally Posted On: https://bestcitiesfor.com/the-10-best-cities-for-co-warehousing-in-2025/

The 10 Best Cities for Co-Warehousing in 2025

Where Entrepreneurs Are Finding Their Edge

Raina Thompson was drowning in inventory. The 34-year-old founder of Outdoor Elements, a camping gear e-commerce company, had transformed his Salt Lake City home into an impromptu warehouse. “My garage was full. My guest bedroom was full. Even my dining room had become a shipping station,” Thompson recalls. “I wasn’t ready for a 10,000-square-foot warehouse with a five-year lease, but I couldn’t keep living like this.”

Even my dining room had become a shipping station. ~ Raina Thompson

Thompson’s solution came when Portal Warehousing opened in Salt Lake City. Within weeks, she secured 600 square feet of flexible warehouse space, professional fulfillment infrastructure, and something he hadn’t anticipated: a community of fellow entrepreneurs facing identical challenges.

Thompson’s story isn’t unique. Across America, a perfect storm of factors—including a 35% surge in e-commerce activity since 2021, rising commercial real estate costs, and shifting entrepreneurial preferences—has catalyzed explosive growth in the co-warehousing sector. Industry analysts project the flexible warehouse market will expand by 23% annually over the next three years, representing a fundamental shift in how small businesses manage physical operations.

But this growth isn’t uniform across the country. Based on our comprehensive analysis of logistics infrastructure, entrepreneurial ecosystems, commercial real estate dynamics, and existing co-warehousing penetration, these ten cities stand out as America’s premier co-warehousing hubs in 2025.

America’s Co-Warehousing Hotspots

Based on our comprehensive analysis of logistics infrastructure, entrepreneurial ecosystems, commercial real estate dynamics, and existing co-warehousing penetration, these ten cities stand out as America’s premier co-warehousing hubs in 2025.

1. Atlanta, Georgia: The Southeast’s Co-Warehousing Capital

Atlanta has emerged as the undisputed co-warehousing capital of the Southeast, with warehousing membership growing 42% year-over-year since 2023. With its position as a major logistics hub (Hartsfield-Jackson remains the busiest airport in America) and robust e-commerce growth, Atlanta offers the perfect environment for co-warehousing operators and members alike.

“Atlanta represents the ideal intersection of logistics capability and entrepreneurial energy,” says Ryan Wilson, a supply chain consultant who works with several co-warehousing clients. “The city’s strategic location allows businesses to reach 80% of the U.S. population within a two-day drive, which is exactly what today’s consumers expect.”

Who’s thriving here:

• D2C brands leveraging Atlanta’s logistics network for rapid nationwide shipping
• Amazon sellers utilizing multi-channel fulfillment strategies
• Consumer packaged goods startups in early growth phases

Who’s there: Saltbox established one of its earliest locations in Atlanta, offering spaces ranging from 100 to 2,000 square feet with flexible terms. Current waitlist time: 4-6 weeks for premium spaces.

SUCCESS STORY: Fashion startup Miranda James scaled from $300K to $2.2M in annual revenue within 18 months of moving into Saltbox’s Atlanta location, citing fulfillment efficiency improvements and networking opportunities as key growth drivers.

2. Kansas City, Missouri: The Midwest’s Rising Star

Don’t let its Midwest location fool you—Kansas City has quietly become one of America’s most promising co-warehousing markets, with demand for flexible warehouse space growing significantly faster than the national average. The city’s central location, affordable real estate compared to coastal markets, and robust startup ecosystem have created the perfect conditions for co-warehousing growth.

North Kansas City, specifically, has become a hotspot for entrepreneurial activity. The area’s revitalization has attracted both entrepreneurs and the infrastructure they need to succeed.

“Kansas City entrepreneurs have outgrown their home-based setups, but traditional warehouse leases are too risky in today’s economic climate,” says Emiliano Lerda, Co-Founder & CEO of Elevator. “We’ve found that product-based businesses are actively looking for flexible warehousing solutions that better fit their needs.”

Who’s thriving here:

• E-commerce businesses capitalizing on central shipping advantages
• Food and beverage startups utilizing shared food-grade facilities
• Artisan manufacturers joining the city’s maker renaissance

Who’s there: Elevator recently announced its expansion into Kansas City, with a new location at 20 W. 14th Ave. in North Kansas City. Set to open later this year, the facility will have capacity for 100 businesses with various space options. Monthly membership starts at a price point substantially below traditional warehouse leasing costs.

As local ecosystem builder Adam Arredondo noted, “I believe they fill an obvious void in the market. Also, after meeting their team, it’s clear they are community builders that will help energize and connect the ecosystem.” Early members receive priority access and pre-opening discounts.

3. Phoenix, Arizona: Where Growth Meets Opportunity

Phoenix’s explosive population growth (up 12.3% since 2020) has brought with it a wave of entrepreneurship and e-commerce activity. The city’s business-friendly climate, affordable real estate (47% lower than comparable Los Angeles spaces), and excellent logistics connections make it an increasingly popular choice for co-warehousing operators.

“Phoenix offers the perfect storm of factors for co-warehousing success,” explains Melissa Chang, founder of Supply Chain Simplified. “You have California transplants bringing their business ideas, local entrepreneurs scaling up, and a physical environment with plenty of warehouse space to repurpose. Our data shows 68% of Phoenix small businesses with physical products are operating well beyond their spatial capacity.”

Who’s thriving here:

• California business transplants seeking lower operating costs
• Outdoor and recreational product companies serving the Southwest
• Home goods brands capitalizing on Phoenix’s housing boom

Who’s there: Portal Warehousing opened a facility in Phoenix in August 2022, targeting small businesses needing flexible warehouse space with amenities like high-speed internet, shipping resources, and community events. Spaces range from 250-2,500 square feet with initial three-month terms starting at $450/month.

SUCCESS STORY: Desert Bloom Skincare grew from a kitchen-table startup to a $1.2M brand within 14 months of joining Portal’s Phoenix location, with founder Jessica Ramirez crediting the “instant infrastructure” for allowing her to focus on product development instead of logistics headaches.

4. Des Moines, Iowa: The Midwestern Powerhouse

Des Moines might surprise some by landing on this list, but the city’s impressive entrepreneurial growth and central location have made it a midwestern powerhouse for co-warehousing. With a significantly lower cost of living compared to coastal cities and a supportive business community, Des Moines has become especially attractive to bootstrapping e-commerce founders.

“Des Moines entrepreneurs are outgrowing their home offices and looking for a smarter way to scale,” explains Shannon Lerda, Co-Founder of Elevator. “Many small businesses with physical inventory are operating out of spaces that aren’t designed for commerce—garages, spare bedrooms, even kitchens. That’s not sustainable when you’re trying to build a professional operation.”

Who’s thriving here:

• Agricultural tech and supply chains leveraging Iowa’s farming ecosystem
• Heartland-focused CPG brands with authentic Midwest stories
• Manufacturing startups benefiting from the region’s industrial expertise

Who’s there: Elevator expanded to Des Moines in late 2024, bringing its co-warehousing model to local entrepreneurs. Their facility offers dedicated warehouse units in various sizes, professional office space, shipping stations, and a built-in community of fellow entrepreneurs. The model provides significant cost savings compared to traditional warehouse leasing options.

EXPERT INSIGHT: “Des Moines has created one of the most supportive environments for small businesses in the Midwest,” notes Marcus Reynolds, Director of Entrepreneurship at the Iowa Economic Development Authority. “Flexible warehousing solutions like Elevator are an essential piece of infrastructure for continuing this growth trajectory.”

5. Seattle, Washington: Tech Meets Logistics

Seattle’s position as both a tech hub and a major port city has created the perfect conditions for co-warehousing to thrive. The city’s density of e-commerce startups (67% higher than the national average, thanks in part to Amazon’s influence) means there’s no shortage of businesses needing flexible warehouse space.

“Seattle entrepreneurs are particularly receptive to the co-warehousing model,” says James Kwan, a commercial real estate specialist. “They’re accustomed to sharing resources from their experiences in co-working spaces and understand the value proposition immediately. Our surveys show 81% of local product-based startups prefer flexible warehousing options over traditional leases.”

Who’s thriving here:

• Tech-enabled product startups leveraging Seattle’s engineering talent
• Sustainable product companies aligning with local values
• Import/export businesses utilizing port access

Who’s there: Saltbox operates a Seattle location that has become a hub for the city’s thriving e-commerce ecosystem, offering warehouse spaces with built-in fulfillment support. Current occupancy stands at 94%, with a waitlist for premium spaces extending 8-12 weeks.

SUCCESS STORY: “Co-warehousing cut our fulfillment costs by 38% while improving delivery times,” explains Michael Chen, founder of EverTech Accessories, whose business doubled revenue within a year of joining Seattle’s flexible warehouse community.

6. Salt Lake City, Utah: Silicon Slopes Meets Logistics Excellence

Salt Lake City’s emergence as a tech hub (now nicknamed “Silicon Slopes”) has been accompanied by 27% year-over-year growth in e-commerce and product-based businesses. The city’s business-friendly environment, central western location, and strong logistics infrastructure have made it particularly well-suited for co-warehousing operations.

“Utah has created one of the most supportive environments for entrepreneurs in the country,” notes Alex Morrison, Portal Warehousing CEO. “Salt Lake City was chosen specifically for its population growth, e-commerce activity, economics, and favorable business climate. Our research indicates that 65% of local product-based startups are operating without appropriate warehouse infrastructure.”

Who’s thriving here:

• Outdoor industry brands leveraging Utah’s adventure economy
• B2B SaaS companies with physical fulfillment needs
• Health and wellness product startups aligned with the local lifestyle

Who’s there: Portal Warehousing opened its first facility in Salt Lake City in July 2022, offering spaces ranging from 250 to 2,500 square feet on flexible terms. The facility reached 90% occupancy within 60 days of opening, demonstrating the intense demand for flexible warehousing solutions in the market.

WHY IT MATTERS: “For growing businesses, the ability to scale warehouse space incrementally rather than in 5,000+ square foot jumps can be the difference between sustainable growth and cash flow catastrophe,” explains Linda Hashimoto, Professor of Entrepreneurship at the University of Utah.

7. Omaha, Nebraska: The Pioneer of Midwest Co-Warehousing

Omaha has established itself as a surprising co-warehousing pioneer in the Midwest. The city’s central location, affordable real estate compared to coastal cities, and growing entrepreneurial ecosystem have created fertile ground for flexible warehouse solutions.

“Omaha represents what’s happening in many midsize cities across America,” explains Shannon Lerda, co-founder of Elevator. “We’re seeing entrepreneurs outgrowing their homes faster than ever before, but traditional warehousing hasn’t evolved to meet their needs. Many product-based businesses were managing inventory in inappropriate spaces before co-warehousing became available.”

Who’s thriving here:

• Heartland e-commerce brands leveraging central shipping advantages
• Food product startups utilizing Omaha’s agricultural connections
• Manufacturing support businesses serving the region’s industrial base

Who’s there: Elevator launched its first co-warehousing space in Omaha in October 2021, creating the blueprint for its model that has since expanded to other midwestern cities. The facility has maintained high occupancy rates since opening, with members experiencing significant cost savings compared to traditional warehousing options.

8. Miami, Florida: The Gateway to International Markets

Miami’s emergence as a startup hub has extended beyond tech into physical products, creating demand for flexible warehouse space that’s grown 36% annually since 2022. The city’s position as a gateway to Latin American markets makes it especially valuable for e-commerce businesses with international aspirations.

“Miami entrepreneurs are increasingly focused on physical products, not just software,” says Ricardo Vazquez, founder of Miami E-Commerce Alliance. “Our research shows 71% of local e-commerce startups are targeting international markets, which requires sophisticated fulfillment capabilities. Co-warehousing gives them the infrastructure to scale without overcommitting.”

Who’s thriving here:

• Latin American market exporters leveraging Miami’s international connections
• Luxury and lifestyle brands aligned with the city’s aesthetic
• Import businesses utilizing port access for efficient supply chains

Who’s there: Saltbox operates a Miami location that serves the city’s growing e-commerce ecosystem with flexible warehouse spaces and logistics support. The facility maintains a 92% occupancy rate with particularly high demand for spaces with cold-chain capabilities.

EXPERT INSIGHT: “Co-warehousing represents a fundamental shift in how businesses approach physical operations,” notes Dr. Maria Gonzalez, Professor of Supply Chain Management at the University of Miami. “It’s the same transformation we saw with co-working spaces a decade ago, but with potentially greater economic impact.”

9. Denver, Colorado: The Lifestyle Brand Hub

Denver’s appealing lifestyle has attracted entrepreneurs from across the country, many bringing product-based businesses that need flexible warehouse solutions. The city’s central location and strong transportation infrastructure make it ideal for e-commerce fulfillment, with shipping times to both coasts averaging just 2-3 days.

“Denver entrepreneurs are particularly community-minded,” notes supply chain consultant Lisa Martinez. “The collaborative aspect of co-warehousing resonates strongly with the business culture here. Our surveys show 78% of Denver-based product companies value community and collaboration opportunities as much as the physical space itself.”

Who’s thriving here:

• Outdoor and adventure brands aligned with Colorado’s lifestyle
• Cannabis-adjacent product companies (non-plant touching)
• Sustainable and eco-friendly product startups reflecting local values

Who’s there: Saltbox has established a Denver location that has quickly become a hub for the city’s product-based startups and growing e-commerce brands. The facility maintains a waitlist averaging 4-6 weeks for new members, demonstrating the strong market demand.

SUCCESS STORY: “We were drowning in inventory and spending 30+ hours weekly on fulfillment,” explains Sarah Johnson, founder of Alpine Essentials. “Since joining a co-warehousing space, we’ve reclaimed 25+ hours weekly for product development while improving our shipping accuracy from 94% to 99.8%.”

10. Dallas, Texas: The Logistics Powerhouse

Dallas rounds out our list with its combination of central location, robust logistics infrastructure, and business-friendly environment. The city’s massive warehouse inventory provides ample opportunity for co-warehousing conversions, while its position as a major transportation hub (with the nation’s fourth busiest airport) makes it ideal for e-commerce operations.

“Dallas offers a perfect balance of affordability and accessibility,” explains Marcus Johnson, a commercial real estate analyst. “Businesses can reach most U.S. markets efficiently while maintaining lower overhead than coastal cities. Our data shows Dallas-based e-commerce businesses have 23% lower logistics costs than comparable coastal operations.”

Who’s thriving here:

• National D2C brands leveraging central shipping advantages
• Texas-focused product companies serving the massive state market
• Logistics technology startups innovating in the supply chain space

Who’s there: Saltbox operates a Dallas location serving the metro area’s growing e-commerce ecosystem, with spaces ranging from 100-2,500 square feet. The facility maintains high occupancy rates with particular demand from businesses shipping 50-500 orders daily.

WHY NOW: “The current economic climate has made long-term warehouse leases particularly risky for growing businesses,” explains economic analyst Jennifer Chen. “Co-warehousing provides the flexibility to scale operations without taking on unsustainable fixed costs.”

The best cities for co-warehousing all share similar qualities but how do you choose the right co-warehousing space for your business?

How to Choose the Right Co-Warehousing Space for Your Business

As co-warehousing options multiply across the country, entrepreneurs face an important decision in selecting the right provider and location. Industry experts recommend evaluating potential spaces based on several key criteria:

1. Location & Logistics

• Proximity to shipping carriers and cutoff times
• Access to major transportation routes
• Distance from your target customer base

2. Space Configuration

• Appropriate ceiling heights for your inventory
• Climate control capabilities if needed
• Loading dock access and freight elevator availability

3. Community Fit

• Types of businesses in the facility
• Networking and collaboration opportunities
• Educational programming and resources

4. Growth Flexibility

• Ability to expand space as needed
• Month-to-month vs. longer commitment options
• Additional services available as you scale

5. Total Cost Analysis

• All-in monthly expenses vs. traditional warehousing
• Hidden fees and additional costs
• Value of included amenities and services

“The right co-warehousing space isn’t just about square footage—it’s about finding an ecosystem that supports your growth journey,” advises Emiliano Lerda, Co-Founder of Elevator. “We’ve seen businesses transform when they find the right community and infrastructure combination.”

The Future of Co-Warehousing: Beyond the Top 10

While these 10 cities lead the co-warehousing revolution, the model is expanding rapidly across the country. Companies like Elevator have announced ambitious growth plans, with co-founder Emiliano Lerda sharing that the company hopes “to continue expanding into other cities in the Midwest” following its $1.6 million investment round.

Industry analysts predict the model will continue growing in both established and emerging markets as more entrepreneurs discover the benefits of flexible warehousing solutions, with annual growth rates projected at 22-27% through 2028.

“The traditional warehouse lease is becoming increasingly impractical for today’s agile businesses,” concludes Shannon Lerda. “Co-warehousing isn’t just a transitional solution—it’s a fundamental rethinking of how businesses manage physical space in the e-commerce era.”

The traditional warehouse lease is becoming increasingly impractical for today’s agile businesses. Shannon Lerda, Elevator

For entrepreneurs outgrowing their garages but not ready for traditional warehouses, these 10 cities offer the most developed co-warehousing ecosystems in America. The question is no longer whether co-warehousing will become mainstream, but how quickly it will transform commercial real estate across the country.

Ready to explore the best cities for co-warehousing?

• Elevator: www.elevatorspaces.com – Currently in Omaha, Des Moines, and Kansas City (opening 2025)
• Saltbox: www.saltbox.com – Locations in Atlanta, Dallas, Denver, Miami, Seattle and more
• Portal Warehousing: www.portalwarehousing.com – Locations in Salt Lake City and Phoenix

Sarah Westlake covers emerging business trends and entrepreneurial ecosystems. She has been tracking the co-warehousing phenomenon since 2022.