Before you sign a commercial warehouse space lease contract it’s critical that you do your due diligence to verify that you and the lessor are on the same page as to who is responsible for what.
There are numerous subtleties to renting industrial and warehouse properties and even minute oversights maybe extremely pricey. Not all warehouse spaces have the same amenities so ensure to ask the landlords a ton of questions regarding them and work with experts (e.g. electrical expert) if required to warrant that the locations will satisfy your needs. To help get you started listed here are a few things you need to contemplate when renting Warehouse or Industrial properties.
These are simply a few details you should very carefully examine prior to executing an Industrial or Warehouse contract. In case you think of any questions regarding renting warehouse property for rent or would like to understand how to figure out your monthly industrial space lease costs don’t hesitate to contacta warehouse space leasing agency such as Austin Tenant Advisors.
Heating systems,Ventilation,and A/c (HVAC)– The majority of Industrial properties are not built with full building HVAC SYSTEM. If the tenant chooses to obtain it each tenant is on the hook for the installation of their own HVAC unit. In a lot of instances you end up leasing a space that had been formerly used by another person and they set up and operated an HVAC system. Considering you don’t learn if that company properly maintained the unit try to avoid assuming obligation of a possibly neglected system.
Negotiate with the lessor that you will pay for a COOLING AND HEATING repair and maintenance contract to keep the existing HVAC unit property cared for,however if the system may need a significant repair or replacement unit the landlord should be accountable. Prior to executing the lease make sure you require that the landlord get the HEATING AND COOLING units examined and serviced (if needed) and guaranteed in writing that they are in good working condition by a licensed HVAC service tech.
Operating Expenses (aka NNN)– Ensure you are aware of what is and what is not included in the triple nets and what maybe left out (e.g. roof repairs ). Operating costs generally include taxes,insurance,and repair and maintenance. You need to understand what the lessor is going to pay for and what you will be responsible for.
Square Footage — Some landlord compute the square footage in different ways. Make certain you understand exactly how they are performing their computations and what they are including. Ideally you just desire to pay for your usable square footage which is the actual space you occupy. A few landlords will try to incorporate the area under the buildings drip lines and some will decide to calculate from the outside of the wall surface vs the middle or inside.
Parking Area– Parking lots need maintenance (asphalt or concrete) and some building owner’s try to make the tenants pay for this. Repair services and routine maintenance should be the landlord’s responsibility due to the fact that is a very long term expenditure and a component of future property market value computations. What is the operation of the parking? Who will be utilizing it the most? Do you require to be able to park box trucks or vehicles over night? If so ensure that you possess the opportunity to.
Zoning– See to it the Manufacturing or warehouse property is zoned for your intended use. Some retail tenants (e.g. martial arts) love the idea of renting an industrial space given that the rental rates are less costly than retail. Nevertheless if the space is not zoned for retail usage tenants will not be able to rent it… except if the renters or the landlord desires to apply for a zoning revision. You likewise need to make sure the facilities parking percentage (spaces per 1000 sf) is adequate for you. In case you want to have more then look at one more property or look at retail space.
Repairs and maintenance of the commercial property– See to it you have knowledge of what the lessor is responsible for and what you will be accountable for. Garbage will ordinarily be your expense.
docking locations– Will you have items delivered or picked up by means of 18 wheeler or UPS style vans? If so then you will need dock high loading and a truck court sizable enough for 18 wheelers to maneuver. Do you have to have the ability to operate box trucks or other motor vehicles in to the warehouse space? If so then you require grade level loading. What ever the situation make sure you ask if the Industrial building comes with what you require or if the landlord is willing to install what you need. Trailers and trucks used to be 45 ft +/- however, nowadays the trucks and trailers are 60 ft +/-. What this suggests is you need approximately a 120 ′ turning radius. Much older Industrial buildings may not be able to support this.
Electric– Make certain the Industrial properties come with power adequate for your requirements. Do you need 3 phase electrical power? If you or the landlord does not have an idea what is existing then enlist the services of an electrical contractor or electrical engineer to look at the location. You should guarantee the property has plenty of amperage and electrical power so you do not blow transformers or discover it is underpowered later.
Clear Height– See to it that you ask about the clear height. If you intend on stacking items or equipment or operating large machines you need to ensure that you know how high you can go. Ceiling heights usually range from 18 ft to 25 ft.
Renewal options– Ask the building owner if any adjacent tenants possess renewal options. If you plan on growing in the future it may be good to know if you get the potential to do so. If your neighbors have an option to expand on your space then negotiate to get the landlord move you at the building owners expense.
Floor Load– What is the flooring load for the concrete slab versus what your proposed use will be ?