Well before you sign a commercial warehouse space lease it’s essential that you carry out your due diligence to be certain that you and the property owner are on the exact same page as to who is accountable for what.
There are lots of subtleties to leasing industrial and warehouse properties and even minimal oversights could be quite pricey. Not all industrial spaces come with the identical features so ensure to ask the landlords a ton of questions about them and enlist the services of experts (e.g. electrical expert) if necessary to certify that the locations will accommodate your requirements. To help get you going listed here are a handful of points you should really keep in mind when leasing Warehouse as well as Industrial properties.
These are merely a handful of details you have to carefully review in advance of signing an Industrial or Warehouse lease. If you have any questions about renting industrial property for lease or would love to know how to figure out your monthly industrial space rental payments don’t hesitate to get in touch witha warehouse space rental agency such as Austin Tenant Advisors.
Heating,Ventilation,and Air Conditioning (HVAC)– Most warehouse properties aren’t delivered with whole building HEATING AND AIR. Whenever the tenant chooses to have it each tenant is responsible for the set up of their own AIR CONDITIONING unit. In a lot of circumstances you wind up leasing a space that was previously leased by another company and they had installed and utilized an HVAC system. Considering that you don’t know if that company adequately maintained the HVAC Unit make an attempt to avoid assuming obligation of a potentially not cared for system.
Negotiate with the property owner that you will buy a HVAC maintenance contract to keep the existing HVAC system property maintained,however if the system needs a major repair job or replacement the property owner must be accountable. Prior to signing the contract always require that the property owner have the COOLING AND HEATING systems evaluated and fixed (if necessary) and confirmed in writing that they are in excellent working condition by a professional HVAC expert.
Operating Expenses (aka NNN)– Ensure that you find out what is and what is not included in the triple nets and what maybe omitted (e.g. roof repairs ). Operating expenditures usually include property taxes,property insurance,and repairs and maintenance. You need to learn what the property owner is going to pay for and what you will be liable for.
Square Footage — Some landlord compute the square footage differently. Make sure you know 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 actual area you occupy. Several landlords will certainly attempt to include the area beneath the properties drip lines and some will choose to calculate from the exterior of the wall surface vs the middle or inside.
Parking Area– Parking lots need routine maintenance (asphalt or concrete) and a number of building owner’s try to make the renters pay for that. Repairs and maintenance really should be the property owner’s obligation because is a very long term expense and a component of future commercial property market value computations. What is the purpose of the parking? Who will be utilizing it the most? Do you require to be able to leave 18 wheelers or motor vehicles overnight? If so be sure you possess the ability to.
Zoning– Make sure the Industrial or warehouse commercial property is zoned for your intended use. A few retail renters (e.g. martial arts) like the concept of leasing an industrial property considering the lease rates are much cheaper than retail. Nevertheless if the property is not zoned for retail use renters will not be able to lease it… except if the tenant or the property owner wants to apply for a zoning update. You also need to make certain the buildings parking percentage (spaces per 1000 sf) is enough for you. If you want to have extra then think about another space or look at retail space.
Routine maintenance of the property– Ensure you learn what the property owner is responsible for and what you will be accountable for. Trash will generally be at your expenditure.
docking locations– Will you have products delivered or picked up by means of 18 wheeler or UPS type vehicles? If so then you will want to have dock high loading and a truck court sizable enough for 18 wheelers to navigate. Do you want to have the ability to drive trucks or other types of vehicles within the warehouse space? If so then you need grade level loading. Whichever the case make certain you inquire if the warehouse property has what you need or if the lessor wants to install what you want. Trailers and trucks used to be 45 ft +/- however these days the trucks and trailers are 60 ft +/-. What that suggests is you have to have at the very least a 120 ′ turning area. More outdated warehouse commercial properties may not be able to accommodate this.
Electrical– Verify the warehouse properties come with power acceptable for your needs. Do you want 3 phase electrical power? If you or the lessor does not have an idea what is existing then get an electrical contractor or electrical engineer to assess the property. You should guarantee the premises has adequate amperage and electrical power so you will not blow transformers or learn it’s underpowered in the future.
Clear Height– Ensure that you inquire about the clear height. If you plan on stacking products or equipment or using large machines you need to ensure you know how high you can go. Ceiling heights normally range from 18 ft to 25 ft.
Expansion options– Ask the lessor if any nearby renters possess expansion options. If you count on expanding later it would be good to know if you possess the option to do so. If your neighbors negotiated an option to expand on your space then negotiate to have the lessor relocate you at the landlords expense.
Flooring Load– What is the flooring load for the concrete slab vs what your designated use will be ?