The temperature determines how much moisture the air can hold. If the temperature drops, and the air is saturated with moisture, condensation wall occur.
Even with electric heating, if a mammal is present, the air exhaled will contain moisture.
Moist air is heavier than dry (Church walls are often dehumidified by inserting unglazed ceramic tubes, with the open end, outside,slanting downwards, to get rid of the heavier moist air)
In our case, ventilation, even a little helps..
Insulation is essential. At best it conserves heat, at worst it reduces the rate of temperature change, and the risk of condensation.
My old shop was unheated and unventilated, and in winter, the oil on the Myford would be grey as it emulsified with the moisture in the air.
My present shop in East Anglia, UK, is relatively small, but is well insulated (50mm of glassfibre between 19mm exterior cladding, and 12mm interior, on all walls, ditto for the roof ) There are two 25mm diameter fixed vents at floor level and a 6" fan at high level (With a rainproof hood outside ) The intake fan is very rarely used., since the door is often kept open.
In times of frost, a 60 watt tubular heater, under a steel bench, is switched on. After a couple of days, the bench no longer feels cold.
Rust is not a problem, VERY rare..
If I am concerned about any measuring equipment, I warm a small tube of Lanolin (To make it runny and easier to spread ) in hot water and coat the metal with it.
Howard