Well before you sign a commercial industrial space lease contract it’s essential that you carry out your due diligence to make certain that you and the property owner are on the same page as to who is on the hook for what.
There are countless distinctions to renting industrial and warehouse space and even minimal mistakes maybe quite pricey. Not all industrial properties have the same amenities so make sure to ask the landlords a lot of questions about them and work with experts (e.g. electrician) if necessary to validate that the locations will meet your requirements. To help get you going listed here are a few things you should really take into consideration when renting Warehouse and Industrial space. If you would like more info about this check out AustinTenantAdvisors
Heating,Ventilation,and Air Conditioning (HVAC)– The majority of industrial warehouse buildings are not built with whole building A/C. Whenever they choose to obtain it each tenant is responsible for the installation of their own AIR CONDITIONER unit. In a great deal of situations you wind up renting out a space that had been already contracted by another occupant else and they had installed and operated an HVAC unit. Considering you usually do not know if that company fully took care of the unit make an attempt to refrain from assuming obligation of a possibly neglected unit.
Discuss with the property owner that you will purchase a HEATING AND COOLING repair and maintenance contract to keep the existing HVAC unit property serviced,however if the unit necessitates a significant service or replacement unit the property owner should be responsible. Prior to executing the lease contract you should always require that the property owner get the COOLING AND HEATING systems inspected and replaced (if needed) and guaranteed in writing that they are in good working condition by a professional HVAC specialist.
Operating Expenses (also known as NNN)– Ensure you learn what is and what is not included in the triple nets and what can be left out (e.g. roof maintenance and repairs ). Operating expenditures usually consist of property taxes,insurance,and maintenance. You need to determine what the property owner is 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 find out exactly how they are doing their calculations and what they are incorporating. Preferably you solely wish to pay for your usable square footage which is the actual space you occupy. Several landlords will certainly make an effort to include the space underneath the buildings drip lines and some will make a decision to to calculate from the exterior of the wall surface vs the middle or inside.
Parking Area– Parking lots necessitate routine maintenance (asphalt or concrete) and a number of building owner’s try to make the lessees pay for this. Repair services and routine maintenance ought to be the property owner’s obligation for the reason that is a long term expenditure and part of future commercial property market value calculations. What is the use of the parking? Exactly who will be making use of it the most? Do you require to be able to park 18 wheelers or cars overnight? If so see to it you possess the option to.
Zoning– Ensure the Industrial or warehouse property is zoned for your intended use. A number of retail lessees (e.g. martial arts) love the idea of renting an industrial property because the lease costs are less expensive than retail. If the commercial space is not zoned for retail use they will not be able to rent it… except if the tenant or the property owner wants to apply for a zoning change. You additionally need to make certain the property’s parking ratio (spaces per 1000 sf) is good enough for you. In case you necessitate more then look at one more building or look at retail space.
Routine maintenance of the property– See to it you find out what the property owner is responsible for and what you will be responsible for. Garbage will generally be your expenditure.
docking areas– Will you have items delivered or picked up via 18 wheeler or UPS type trucks? If so then you will want to have dock high loading and a truck court large enough for 18 wheelers to navigate. Do you need the capability to operate vans or other types of motor vehicles into the warehouse? If so then you need grade level loading. Whatever the situation see to it you ask if the warehouse property has what you necessitate or if the property owner agrees to install what you need. Trailers and eighteen-wheelers used to be 45 ft +/- however, these days the 18 wheelers are 60 ft +/-. What this means is you need at minimum a 120 â ² turning radius. Some older industrial warehouse commercial properties probably won’t have the ability to accommodate this.
Electricity– Make certain the warehouse buildings come with power adequate for your requirements. Do you need 3 phase power? If you or the property owner does not have knowledge of what is existing then employ the services of an electrical contractor or electrical engineer to look at the building. You should make sure the building has ample amperage and power so you don’t blow transformers or learn it’s underpowered later on.
Ceiling Height– Ensure that you ask about the clear height. If you anticipate stacking goods or equipment or operating large equipment you need to ensure that you know how high you can go. Clear heights typically vary from 18 ft to 25 ft.
Renewal options– Ask the property owner if any contiguous lessees possess renewal options. If you intend on expanding in the future it would certainly be great to know if you possess the opportunity to do so. If your neighbors negotiated an option to expand on your space then negotiate to get the property owner relocate you at the building owners cost.
Floor Load– What is the floor load with regard to the cement slab versus what your anticipated use will be ?
These are only a few details you ought to very carefully review prior to executing an Industrial or warehouse space lease contract. In case you have any questions about renting industrial property for rent or want to find out how to determine your monthly warehouse rent costs don’t be reluctant to get in touch with us!