Tips on how to Lease Warehouse Space
Well before you sign a commercial industrial space lease it’s essential that you carry out your due diligence to confirm that you and the property manager are on the same page as to who is on the hook for what.
There are numerous distinctions to renting industrial and warehouse properties and even minute misjudgments might be very pricey. Not all warehouse spaces come with the same features so make certain to ask the landlords a bunch of questions regarding them and enlist the services of experts (e.g. electrical installer) if required to certify that the spaces will fulfill your necessities. To help get you going below are a handful of things you must take into consideration when renting Warehouse or Industrial properties.
These are simply a handful of things you need to very carefully evaluate in advance of executing an industrial space or warehouse space lease. If you think of any questions pertaining to leasing warehouse property for lease or want to find out how to compute your monthly warehouse leasing cost do not be reluctant to get in touch withyour warehouse leasing company such as Austin Tenant Advisors.
Heating,Ventilation,and Air Conditioning (HVAC)– Many warehouse buildings aren’t supplied with full building A/C. In the case that the tenant chooses to obtain it each tenant is responsible for the install of their own HEATING AND AIR unit. In a lot of circumstances you wind up renting out a space that had been formerly contracted by another tenant and they had set up and utilized an HVAC system. Considering that you never know if that occupant fully took care of the unit make an effort to keep from assuming liability of a possibly neglected system.
Discuss with the property manager that you will pay for a COOLING AND HEATING routine service contract to keep the existing HVAC unit property serviced,however if the system needs to get a major service or replacement the landlord must be responsible. Prior to executing the rental contract make sure to require that the landlord get the HEATING AND COOLING systems evaluated and restored (if needed) and verified in writing that they are in great working condition by a certified HVAC professional.
Operating Expenses (also known as NNN)– Make certain you are aware of what is and what is not covered in the operating costs and what may be left out (e.g. roof repairs ). Operating expenses usually include property taxes,insurance coverage,and repairs and maintenance. You need to figure out what the property manager is going to pay for and what you will be responsible for.
Square Footage — Some landlord determine the square footage differently. Make sure you find out precisely how they are performing their estimations and what they are including. Ideally you only prefer to pay for your usable square footage which is the actual space you occupy. Several landlords will certainly try to include the area under the buildings drip lines and some will decide to calculate from the exterior of the wall vs the center or inside.
Parking Area– Parking lots require maintenance (asphalt or concrete) and some property owner’s try to make the occupants pay for this. Repairs and maintenance really should be the landlord’s obligation for the reason that is a long term expense and a component of future commercial property value estimations. What is the use of the parking? Exactly who will be using it the most? Do you want to be able to leave trucks or cars overnite? If so see to it that you possess the option to.
Zoning– Verify the Manufacturing or warehouse commercial property is zoned for your planned use. Some retail occupants (e.g. martial arts) like the concept of renting an industrial space considering that the lease prices are less costly than retail. If the commercial space is not zoned for retail use they will not be able to lease it… unless they or the landlord is willing to apply for a zoning update. You also want to make certain the property’s parking ratio (parking spaces per 1000 sf) is sufficient for you. If you want extra then look into some other property or lease retail space.
Routine maintenance of the commercial property– Make certain you learn what the property manager is accountable for and what you are going to be responsible for. Trash will ordinarily be at your expense.
Loading areas– Will you have goods delivered or picked up by means of 18 wheeler or UPS style vans? If so then you will really need dock high loading and a truck court big enough for 18 wheelers to navigate. Do you need to have the capability to operate box trucks or other vehicles within the warehouse? If so then you have to have grade level loading. What ever the case see to it you ask if the warehouse building has what you require or if the lessor wants to install what you want. Trailers and eighteen-wheelers used to be 45 ft +/- but these days they are 60 ft +/-. What this suggests is you have to have at least a 120 ′ turning area. Much older warehouse properties probably won’t be able to accommodate this.
Electrical– Make sure the warehouse properties come with electrical power acceptable for your requirements. Do you want 3 phase power? If you or the lessor does not know what is available then employ an electrician or electrical engineer to look at the location. You should guarantee the building has adequate amperage and power so you will not blow transformers or learn it’s underpowered in the future.
Ceiling Height– Make sure you ask about the ceiling height. If you intend on stacking goods or equipment or running large equipment you want to make sure you know how high you’re able to go. Ceiling heights in most cases range from 18 ft to 25 ft.
Expansion options– Ask the property owner if any surrounding occupants possess expansion options. If you count on expanding later it would certainly be nice to know if you get the option to do so. If your neighbors have an expansion option on your space then negotiate to get the lessor move you at the landlords expense.
Floor Load– What is the flooring load for the concrete slab versus what your designated use will be ?
