Well before you execute a commercial warehouse space lease it’s very important that you do your due diligence to make sure that you and the lessor are on the same page as to who is responsible for what.
There are countless nuances to leasing industrial and warehouse properties and even little mistakes maybe very pricey. Not all warehouse properties contain the comparable amenities so ensure to ask the lessors a bunch of questions concerning them and hire experts (e.g. electrical expert) if needed to make sure that the locations will satisfy your necessities. To help get you started listed here are a few things you need to think about when leasing Warehouse and Industrial properties. If you would like more info about this check out Austin Tenant Advisors
Heating systems,Ventilation,and Air Conditioning (HVAC)– Many warehouse buildings are not built with whole building HEATING AND AIR. In the case that the tenant chooses to obtain it each tenant is on the hook for the installment of their own AIR CONDITIONER unit. In a bunch of circumstances you end up leasing a space that was formerly rented by another company and they set up and operated an HVAC unit. Given that you don’t learn if that company fully took care of the unit make an effort to keep from assuming obligation of a potentially not cared for unit.
Make a deal with the lessor that you will pay for a HEATING AND COOLING repairs and maintenance contract to keep the existing HVAC unit property maintained,however if the unit requires a major repair or upgrade the property owner must be responsible. Before executing the rental contract you should always require that the property owner have the COOLING AND HEATING systems examined and repaired (if needed) and confirmed in writing that they are in great working condition by a licensed HVAC service technician.
Operating Expenses (also known as NNN)– Make sure you are aware what is and what is not included in the operating expenses and what can possibly be excluded (e.g. roof maintenance and repairs ). Operating expenses usually consist of property taxes,property insurance,and repair and maintenance. You need to understand what the lessor is likely going to pay for and what you will be liable for.
Square Footage — Some landlord calculate the square footage in different ways. Make certain you know how they are doing their calculations and what they are incorporating. Ideally you merely prefer to pay for your usable square footage which is the actual area you occupy. Several lessors will certainly attempt to include the area under the properties drip lines and some will make a decision to to calculate from the exterior of the wall vs the middle or inside.
Parking Area– Parking lots require routine maintenance (asphalt or concrete) and some building owner’s try to make the renters pay for that. Repair services and maintenance should really be the property owner’s responsibility because is a very long term expense and a portion of future property market value calculations. What is the utilization of the parking? Who exactly will be using the parking the most? Do you want to be able to leave trucks or automobiles overnite? If so confirm you possess the opportunity to.
Zoning– Make sure the Industrial or warehouse property is zoned for your expected use. A number of retail renters (e.g. martial arts) like the concept of leasing an industrial property due to the fact that the lease rates are less expensive than retail. Nonetheless if the commercial property is not zoned for retail use they will not be able to lease it… except if they or the property owner wants to apply for a zoning revision. You additionally need to verify the property’s parking percentage (spaces per 1000 sf) is sufficient for you. If you require more then look into one more property or look at retail space.
Repairs and maintenance of the property– Make certain you learn what the lessor is accountable for and what you will be responsible for. Garbage will usually be at your cost.
Loading areas– Will you have items delivered or picked up by using 18 wheeler or UPS type trucks? If so then you will want dock high loading and a truck court big enough for 18 wheelers to navigate. Do you need the capability to drive vans or other types of vehicles into the warehouse? If so then you may need grade level loading. What ever the case make sure you ask if the Industrial space has what you really need or if the landlord wants to build what you need to have. Trailers and trucks used to be 45 ft +/- however, nowadays the trucks and trailers are 60 ft +/-. What that means is you have to have at least a 120 â² turning radius. Some older warehouse buildings probably won’t be able to accommodate this.
Electric– Verify the Industrial properties possess electricity sufficient for your needs. Do you need to have 3 phase power? If you or the landlord does not have an idea what is available then hire an electrician or electrical engineer to look at the building. You want to guarantee the premises has plenty of amperage and power so you will not blow transformers or determine it is underpowered in the future.
Ceiling Height– Ensure you ask about the clear height. If you plan on stacking goods or equipment or using large machines you need to make sure you know how high you can go. Clear heights in most cases range from 18 feet to 25 ft.
Expansion options– Ask the lessor if any contiguous renters possess renewal options. If you count on growing eventually it might be great to know if you possess the chance to do so. If your neighbors negotiated an expansion option on your space then negotiate to have the landlord relocate you at the building owners cost.
Floor Load– What is the flooring load with regard to the concrete slab versus what your anticipated use will be ?
These are just a few details you ought to diligently consider in advance of executing an Industrial or Warehouse lease contract. If you have any questions pertaining to renting out warehouse space for lease or want to know how to determine your monthly warehouse space lease costs do not hesitate to connect with us!
