Before you sign a commercial warehouse space lease contract it’s important that you carry out your due diligence to make certain that you and the property manager are on the same page as to who is responsible for what.
There are a lot of distinctions to leasing industrial and warehouse space and even minimal errors might be quite costly. Not all warehouse spaces contain the identical amenities so ensure to ask the property managers a ton of questions regarding them and hire experts (e.g. electrician) if required to prove that the locations will satisfy your requirements. To help get you going listed below are a handful of things you ought to contemplate when leasing Warehouse and Industrial space. You can also check out additionalwarehouse space rental tips here.
Heating,Ventilation,and A/c (HVAC)– Many warehouse properties are not built with full building A/C. If they choose to have it each tenant is on the hook for the installment of their own AIR CONDITIONER unit. In a lot of instances you end up renting a space that had been recently contracted by someone else and they set up and utilized an HVAC system. Because you never find out if that tenant completely took care of the HVAC Unit try to avoid assuming responsibility of a potentially neglected system.
Work out with the property manager that you will purchase a HVAC maintenance contract to keep the existing HVAC system property maintained,however if the system needs to get a significant service or upgrade the property owner should be responsible. Prior to executing the lease make sure to require that the property owner get the HVAC units evaluated and serviced (if needed) and confirmed in writing that they are in excellent working condition by a qualified HVAC service tech.
Operating Expenses (aka NNN)– Make certain you are aware of what is and what is not covered in the operating expenses and what can possibly be excluded (e.g. roof maintenance and repairs ). Operating expenses almost always include property taxes,insurance coverage,and repairs and maintenance. You need to determine what the property manager is likely going to pay for and what you will be liable for.
Square Footage — Some landlord compute the square footage differently. Ensure that you learn exactly how they are performing their calculations and what they are including. Ideally you solely want to pay for your usable square footage which is the true area you occupy. Several property managers will try to include the space underneath the facilities drip lines and some will choose to calculate from the outside of the wall surface vs the center or inside.
Parking Area– Parking lots necessitate repair and maintenance (asphalt or concrete) and a few property owner’s attempt to make the tenants pay for this. Repair work and routine maintenance ought to be the property owner’s responsibility given that is a very long term expense and a component of future commercial property market value calculations. What is the operation of the parking? Who will be using the parking the most? Do you want to be able to leave trailers or vehicles overnight? If so verify you have the ability to.
Zoning– Verify the Manufacturing or warehouse real estate is zoned for your planned use. A number of retail tenants (e.g. martial arts) like the idea of leasing an industrial space given that the lease rates are less costly than retail. Nonetheless if the property is not zoned for retail usage they will not be able to lease it… unless they or the property owner is willing to apply for a zoning modification. You additionally want to verify the buildings parking percentage (parking spaces per 1000 sf) is adequate for you. If you may need extra then look into a different building or lease retail space.
Repairs and maintenance of the commercial property– See to it you know what the property manager is accountable for and what you will be responsible for. Garbage will often be your expenditure.
docking locations– Will you have goods delivered or picked up via 18 wheeler or UPS type trucks? If so then you will really need dock high loading and a truck court sizable enough for 18 wheelers to maneuver. Do you require the capability to operate vans or other motor vehicles in to the warehouse space? If so then you have to have grade level loading. Whichever the situation ensure that you inquire if the warehouse building provides what you necessitate or if the landlord wants to put in what you need to have. Trailers and trucks used to be 45 ft +/- but these days the 18 wheelers are 60 ft +/-. What this implies is you need to have around a 120 â ² turning area. More outdated warehouse spaces might not be able to accommodate this.
Electrical– Verify the warehouse buildings provide electricity adequate for your requirements. Do you need to have 3 phase electrical power? If you or the landlord does not know what is existing then hire an electrical contractor or electrical engineer to assess the property. You want to guarantee the property has ample amperage and electrical power so you will not blow transformers or learn it is underpowered in the future.
Clear Height– Make certain you inquire about the ceiling height. If you intend on stacking goods or equipment or running large equipment you want to ensure you understand how high you can go. Heights normally range from 18 ft to 25 ft.
Renewal options– Ask the building owner if any surrounding tenants have renewal options. If you intend on expanding later it would be good to know if you have the chance to do so. If your neighbors have an option to expand on your space then negotiate to get the landlord relocate you at the building owners cost.
Floor Load– What is the floor load for the cement slab versus what your intended use will be ?
These are just a handful of details you should carefully examine in advance of executing an industrial space or Warehouse lease contract. If you have any questions regarding renting warehouse space for lease or would love to learn how to determine your monthly warehouse space lease costs do not hesitate to call us!