Before you sign a commercial industrial space lease contract it’s essential that you do your due diligence to be certain that you and the lessor are on the exact same page as to who is liable for what.
There are countless distinctions to leasing industrial and warehouse properties and even small errors could be quite expensive. Not all industrial properties contain the same amenities so ensure to ask the property owners a ton of questions concerning them and hire experts (e.g. electrician) if needed to validate that the locations will satisfy your requirements. To help get you going listed here are a handful of aspects you should take into consideration when leasing Warehouse or Industrial properties.
These are simply a handful of details you need to thoroughly assess prior to signing an Industrial or Warehouse lease. If you think of any questions with regards to renting industrial space for lease or would like to learn how to compute your monthly warehouse leasing costs do not hesitate to call a warehouse space rental company such as Austin Tenant Advisors.
Heating,Ventilation,and A/c (HVAC)– Many warehouse buildings aren’t supplied with whole building HEATING AND AIR. In the case that they choose to obtain it each tenant is on the hook for the set up of their own HEATING AND COOLING unit. In a lot of situations you end up leasing a space that was formerly rented by someone else and they put in and used an HVAC unit. Considering that you don’t learn if that occupant appropriately serviced the unit try to keep from assuming liability of a potentially not cared for unit.
Negotiate with the lessor that you will buy a HVAC SYSTEM servicing contract to keep the existing Heating and Cooling System property serviced,however if the unit needs a significant repair job or upgrade the landlord must be responsible. Before signing the lease contract make sure you require that the landlord get the HVAC systems examined and repaired (if necessary) and guaranteed in writing that they are in excellent working condition by a licensed HVAC professional.
Operating Expenses (also known as NNN)– Ensure you know what is and what is not included in the operating costs and what can possibly be excluded (e.g. roof repairs ). Operating expenses generally include taxes,property insurance,and maintenance. You need to know what the lessor is likely going to pay for and what you will be accountable for.
Square Footage — Some landlord determine the square footage differently. Be sure you learn how they are performing their computations and what they are incorporating. Preferably you only desire to pay for your usable square footage which is the true area you occupy. A few property owners will certainly try to include the area beneath the buildings drip lines and some will make a decision to to compute from the outside of the wall surface vs the middle or inside.
Parking Area– Parking lots need repair and maintenance (asphalt or concrete) and some landlord’s try to make the lessees pay for that. Repairs and maintenance really should be the landlord’s obligation for the reason that is a long term expenditure and part of future commercial property value computations. What is the utilization of the parking? Who will be using the parking the most? Do you require to be able to park trailers or cars overnite? If so make sure you have the ability to.
Zoning– See to it that the Manufacturing or warehouse real estate is zoned for your expected use. Some retail lessees (e.g. martial arts) love the idea of leasing an industrial property given that the lease rates are much cheaper than retail. If the space is not zoned for retail use the tenants will not be able to lease it… except if the tenant or the landlord desires to apply for a zoning revision. You also need to ensure the property’s parking ratio (parking spaces per 1000 sf) is good enough for you. If you need to have more then consider a different property or rent retail space.
Repair and maintenance of the property– Ensure you find out what the lessor is accountable for and what you will be responsible for. Trash will ordinarily be your expenditure.
docking areas– Will you have items delivered or picked up by means of 18 wheeler or UPS style vehicles? If so then you will really need dock high loading and a truck court big enough for 18 wheelers to navigate. Do you want the capability to drive box trucks or other types of motor vehicles into the warehouse? If so then you have to have grade level loading. Whatever the case make certain you ask if the Industrial space provides what you really need or if the building owner is willing to put in what you require. Trailers and eighteen-wheelers used to be 45 ft +/- however, these days they are 60 ft +/-. What that implies is you have to have around a 120 ′ turning radius. More outdated warehouse buildings probably won’t have the ability to accommodate this.
Electrical– Make certain the Industrial properties possess power appropriate for your requirements. Do you require 3 phase electrical power? If you or the building owner does not have knowledge of what is available then hire an electrician or electrical engineer to look at the building. You want to ensure the property has ample amperage and electrical power so you do not blow transformers or figure out it’s underpowered later.
Ceiling Height– Ensure you ask about the ceiling height. If you intend on stacking items or equipment or using large equipment you need to ensure you understand how high you can go. Clear heights typically vary between from 18 ft to 25 ft.
Renewal options– Ask the property owner if any nearby lessees have extension options. If you intend on expanding eventually it would certainly be nice to know if you have the ability to do so. If your neighbors have an expansion option on your space then negotiate to get the building owner relocate you at the lessors cost.
Floor Load– What is the flooring load for the cement slab vs what your intended use will be ?