Well before you execute a commercial warehouse space lease contract it’s very important that you conduct your due diligence to make certain that you and the property owner are on the same page as to who is liable for what.
There are countless distinctions to leasing industrial and warehouse properties and even minimal errors could be very pricey. Not all warehouse properties contain the comparable amenities so make sure to ask the landlords a lot of questions regarding them and work with experts (e.g. electrical installer) if needed to validate that the properties will comply with your requirements. To help get you going listed below are a few things you should really think about when leasing Warehouse as well as Industrial properties.
These are only a few details you should thoroughly examine prior to signing an Industrial or Warehouse contract. In the event that you think of any questions with regards to leasing warehouse property for lease or want to learn how to calculate your monthly industrial space leasing cost don’t be reluctant to check witha warehouse space leasing agency such as Austin Tenant Advisors.
Heating,Ventilation,and A/c (HVAC)– Many industrial warehouse properties aren’t supplied with whole building HVAC. Whenever they choose to have it each tenant is responsible for the install of their own AIR CONDITIONING unit. In a lot of instances you end up renting a space that had been previously contracted by another tenant and they installed and used an HVAC unit. Because you never know if that company fully cared for the unit make an effort to refrain from assuming liability of a potentially neglected unit.
Negotiate with the property owner that you will pay for a HEATING AND COOLING routine maintenance contract to keep the existing Heating and Cooling System property cared for,however if the unit needs to have a significant service or upgrade the lessor should be responsible. Prior to signing the rental contract make sure to require that the lessor get the COOLING AND HEATING systems examined and replaced (if needed) and certified in writing that they are in excellent working condition by a certified HVAC specialist.
Operating Expenses (also known as NNN)– Make sure you learn what is and what is not included in the operating expenses and what may possibly be ignored (e.g. roof maintenance and repairs ). Operating expenses generally consist of taxes,property insurance,and repairs and maintenance. You need to know what the property owner is likely going to pay for and what you will be responsible for.
Square Footage — Some landlord calculate the square footage differently. Make sure you learn how they are performing their estimations and what they are including. Preferably you solely want to pay for your usable square footage which is the true space you occupy. A few landlords will certainly try to include the area under the properties drip lines and some will make a decision to to calculate from the outside of the wall surface vs the center or inside.
Parking Area– Parking lots require repair and maintenance (asphalt or concrete) and a few building owner’s try to make the occupants pay for that. Repairs and routine maintenance really should be the lessor’s obligation given that is a lengthy term expense and a portion of future property market value estimations. What is the use of the parking? Who will be making use of the parking the most? Do you require to be able to leave trailers or cars overnite? If so see to it you have the opportunity to.
Zoning– Ensure that the Industrial or warehouse property is zoned for your intended use. Some retail occupants (e.g. martial arts) like the concept of leasing an industrial space since the rental rates are less costly than retail. However if the commercial property is not zoned for retail usage renters will not be able to lease it… except if the renters or the lessor desires to apply for a zoning update. You also want to confirm the buildings parking ratio (spaces per 1000 sf) is enough for you. In the event that you need to get more then look into a different facility or consider retail space.
Repairs and maintenance of the commercial property– Make sure you have knowledge of what the property owner is accountable for and what you are going to be responsible for. Trash will usually be your expense.
Loading areas– Will you have food products delivered or picked up via 18 wheeler or UPS type trucks? If so then you will need dock high loading and a truck court sizable enough for 18 wheelers to maneuver. Do you need to have the ability to operate trucks or other types of vehicles inside the warehouse? If so then you may need grade level loading. Whatever the case make certain you ask if the Industrial space has what you necessitate or if the property owner is willing to install what you need. Trailers and eighteen-wheelers used to be 45 ft +/- but nowadays the trucks and trailers are 60 ft +/-. What that implies is you need to have approximately a 120 ′ turning area. More outdated industrial warehouse commercial properties might not be able to accommodate this.
Electrical– Confirm the Industrial properties have electrical power acceptable for your requirements. Do you need 3 phase power? If you or the property owner does not know what is existing then get an electrical contractor or electrical engineer to look at the property. You should make certain the premises has adequate amperage and power so you don’t blow transformers or determine it’s underpowered later on.
Clear Height– See to it that you ask about the clear height. If you plan on stacking products or equipment or running large equipment you want to make certain you know how high you can go. Heights usually vary between from 18 feet to 25 ft.
Renewal options– Ask the property manager if any surrounding occupants have renewal options. If you plan on growing eventually it will be great to know if you have the potential to do so. If your neighbors have an expansion option on your space then negotiate to get the property owner relocate you at the building owners cost.
Flooring Load– What is the floor load for the concrete slab vs what your designated use will be ?