Well before you execute a commercial warehouse space lease it’s critical that you conduct your due diligence to be certain that you and the landlord are on the exact same page as to who is responsible for what.
There are many nuances to leasing industrial and warehouse space and even minimal mistakes can be quite pricey. Not all warehouse properties contain the identical features so make certain to ask the landlords a ton of questions concerning them and enlist the services of experts (e.g. electrical installer) if required to prove that the properties will satisfy your needs. To help get you started below are a few aspects you should really consider when leasing Warehouse or Industrial space:
Heating systems,Ventilation,and A/c (HVAC)– Many Industrial buildings aren’t delivered with full building A/C. In the event that the tenant chooses to have it each tenant is on the hook for the set up of their own AIR CONDITIONER unit. In a great deal of instances you end up renting out a space that was recently rented by another tenant and they put in and used an HVAC system. Considering you don’t find out if that tenant properly preserved the HVAC system try to keep from assuming obligation of a potentially not cared for system.
Discuss with the landlord that you will buy a HVAC routine maintenance contract to keep the existing HVAC system property cared for,however if the system necessitates a major repair or upgrade the lessor must be responsible. Prior to signing the rental contract make sure you require that the lessor get the COOLING AND HEATING units inspected and serviced (if needed) and confirmed in writing that they are in good working condition by a qualified HVAC expert.
Operating Expenses (aka NNN)– Ensure that you understand what is and what is not covered in the operating costs and what may be omitted (e.g. roof maintenance and repairs ). Operating expenses usually include taxes,property insurance,and maintenance. You need to understand what the landlord is likely going to pay for and what you will be accountable for. You also want to know how todetermine your total warehouse space rental costs
Square Footage — Some landlord calculate the square footage differently. Be sure you find out how they are performing their estimations and what they are also including. Ideally you simply want to pay for your usable square footage which is the true space you occupy. Some landlords will try to incorporate the space underneath the buildings drip lines and some will make a decision to to compute from the outside of the wall vs the center or inside.
Parking Area– Parking lots need routine maintenance (asphalt or concrete) and many landlord’s attempt to make the lessees pay for that. Repair work and routine maintenance should really be the lessor’s responsibility given that is a very long term expenditure and a portion of future commercial property market value estimations. What is the use of the parking? Who will be making use of the parking the most? Do you want to be able to park trailers or automobiles over night? If so see to it you possess the ability to.
Zoning– Confirm the Manufacturing or warehouse commercial property is zoned for your expected use. A few retail lessees (e.g. martial arts) like the idea of leasing an industrial property considering that the rental costs are less expensive than retail. If the commercial space is not zoned for retail use the tenants will not be able to lease it… unless they or the lessor is willing to apply for a zoning change. You additionally need to verify the facilities parking ratio (parking spaces per 1000 sf) is sufficient for you. If you need to get more then look at one more space or rent retail space.
Repair and maintenance of the property– Make certain you know what the landlord is accountable for and what you are going to be responsible for. Trash will typically be your cost.
Loading locations– Will you have goods delivered or picked up via 18 wheeler or UPS style trucks? If so then you will want dock high loading and a truck court sizable enough for 18 wheelers to navigate. Do you want the ability to operate box trucks or other vehicles in to the warehouse? If so then you need grade level loading. What ever the case make certain you ask if the Industrial space provides what you necessitate or if the building owner agrees to build what you need to have. Trailers and trucks used to be 45 ft +/- however these days the 18 wheelers are 60 ft +/-. What that implies is you have to have at minimum a 120 â² turning area. More outdated Industrial commercial properties might not have the ability to support this.
Electricity– Ensure that the Industrial buildings have electricity sufficient for your needs. Do you need to have 3 phase power? If you or the building owner does not have an idea what is existing then employ the services of an electrical contractor or electrical engineer to examine the location. You should guarantee the property has ample amperage and power so you do not blow transformers or discover it is underpowered later on.
Clear Height– Make certain you ask about the clear height. If you plan on stacking goods or equipment or running large machines you need to ensure you know how high you’re able to go. Clear heights normally vary from 18 ft to 25 ft.
Extension options– Ask the property manager if any adjacent lessees possess expansion options. If you intend on expanding later it would be good to know if you have the potential to do so. If your neighbors have an expansion option on your space then negotiate to get the building owner move you at the landlords expense.
Flooring Load– What is the flooring load for the concrete slab versus what your designated use will be ?
These are only a few things you must carefully review before signing an industrial space or Warehouse lease contract. If you have any questions concerning renting warehouse property for lease or would love to find out how to figure out your monthly warehouse space leasing cost don’t hesitate to call us!