With the coronavirus pandemic causing drastic changes in supply and demand for merchandise, a company that matches buyers, sellers and renters of warehouse space is gearing up to meet changing needs.

Warehouse Exchange recently revealed the closing of a $2.2-million deal to fund for new space.

The company that calls itself the "virtual place for space" and the "AirBNB of warehousing" said the package includes new investments by major real estate firms, plus e-commerce, retail and distribution companies. Warehouse Exchange expressed plans to use the funding to hire additional workers at its Los Angeles headquarters, build out its advanced artificial intelligence algorithm and technology platform, and add marketing and sales strength.

"There are three main hurdles for small business owners in finding warehouse space today — painful lease requirements, outsized space minimums, and restrictions on access to their inventory. Warehouse Exchange solves these challenges for customers looking to buy space," CEO Grant Langston said in a written statement announcing the funding deal. "We also help warehouse owners quickly monetize their underutilized space, getting premiums over market rate. Our vision is to bring advanced technology to the warehouse industry so we can reinvent the business, similar to what Airbnb created in one of the world's largest marketplaces for unique, authentic places to stay."

Langston cited research by commercial real estate experts Jones Lang LaSalle projecting that 30 percent of warehouse space leased in the next ten years will be flexible space. That shift is only being accelerated by COVID-19, the disease caused by the coronavirus. He said the company's customer research shows the current supply of warehouse space doesn't work for a new generation of entrepreneurs leading e-commerce companies and managing small businesses nationwide.

Warehouse Exchange was founded in 2017 by Jonathan Rosenthal, CEO of Saybrook Management, and Dan Pimentel, previously chief financial and operating officer of startup Hub TV. The company said it has had 22,000 buyers search for space on the Warehouse Exchange website over the last 18 months.

Instant Insights /

Virtual Warehouse Firm Puts Away $2.2M in Funding for New Space

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