Contract warehouses are owned by a third party entity. These warehouses provide specialized services in addition to allowing the lessee or the client to store goods.

Contract warehouses provide facilities import and export, cross-docking, packaging, inventory control, timely inventory management, local transportation and quality control. In addition to the above- mentioned facilities, contract warehouses provide a number of other services to suit the needs of the clients.

In contract (or “dedicated”) warehousing, the warehouse space and resources are fixed, so the cost is fixed. The tenant company is committing to the fixed space and resources for the time period of the contract.