Warehouse Type Terminology
let's come up with terms that describe the three kinds of warehouse space:
- where the entire warehouse is contracted for use by a single client. Storage, Picking, and Shipping are engineered for that specific client
- where a part of a warehouse is contracted for use by a single client. The storage in that area, along with the picking and shipping areas are engineered for that client. There are also other sections in the four walls of this warehouse that are dedicated to other specific clients, each engineered according to that particular client's needs
- where the entire warehouse is sized and engineered in such a way that multiple clients can share all the storage, picking, and shipping areas.
Based on industry terminology and best practices, here are three distinct terms that differentiate between these warehouse models:
Proposed Warehouse Terminology
1. Dedicated Warehouse (or Single-Tenant Warehouse)
A facility where the entire warehouse is contracted for use by a single client. Storage, picking, and shipping operations are exclusively engineered for that specific client's needs. This is the traditional definition already established in the industry. The 3PL handles all labor, operations, equipment, and systems solely for one business.[1][2]
2. Multi-Tenant Cowarehousing (or Partitioned Warehouse / Segmented Warehouse)
A facility where the warehouse is physically divided into smaller, self-contained units or zones, each leased to a different client. Each tenant has dedicated storage, picking, and shipping areas engineered specifically for their operational requirements, but all are contained within the same four walls. The industry term "Multi-Tenant Cowarehousing" is the most precise, as it explicitly conveys that multiple tenants each have their own dedicated space while sharing the facility's core infrastructure and management.[3]
Alternative terms used include:
- "Partitioned Warehousing" – emphasizing the physical division into separate zones[4]
- "Segmented Warehousing" – highlighting that each client has a defined segment
- "Contract Warehousing Within a Shared Facility" – describing the hybrid nature
3. Shared Warehouse (or Public Warehouse / Multi-Client Open Warehouse)
A facility sized and engineered so that multiple clients share all storage, picking, and shipping areas without dedicated space allocation. Tenants share resources, equipment, labor, and infrastructure on a transactional, pay-as-you-go basis. This is also called:[5]
- "Public Warehousing" – emphasizing open access and flexibility[6][7]
- "Co-Warehousing" – suggesting the coworking model of shared resources[5:1]
- "Multi-User Warehouse" – emphasizing resource sharing across all functions
Warehouse Type Distinction Table v1
The Multi-Tenant Cowarehousing terminology is particularly useful for your second scenario, as it's a growing industry term that explicitly acknowledges the hybrid nature: "dividing a warehouse facility into smaller, self-contained units or zones, each leased to a different tenant."[3:1]
https://www.leansupplysolutions.com/blog/multi-client-warehousing-difference-dedicated-shared-warehousing/ ↩︎
https://www.amsc-usa.com/blog/dedicated-warehousing-vs-shared-warehousing/ ↩︎
https://www.cubework.com/glossary/multi-tenant-cowarehousing ↩︎ ↩︎
https://justmcp.co.uk/partition-walls/warehouse-partitioning/ ↩︎
https://www.awco.com/the-differences-between-contract-and-public-warehousing/ ↩︎
https://www.sibleytransport.com/2014/02/18/public-warehouses-vs-contact-warehouses/ ↩︎
https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/placement-strategies.html ↩︎
https://legacyscs.com/warehousing-options-dedicated-vs-multiclient-vs-public/ ↩︎
https://www.weberlogistics.com/blog/california-logistics-blog/four-cs-between-shared-dedicated-warehouse-services ↩︎
https://pdindustrial.co.uk/solution/warehouse-partitioning/ ↩︎
https://novo-usa.com/difference-between-dedicated-multiclient-warerhousing/ ↩︎