Before you execute a commercial industrial space lease it’s important that you conduct your due diligence to confirm that you and the property manager are on the exact same page as to who is liable for what.
There are many distinctions to renting industrial and warehouse space and even minimal errors are quite pricey. Not all industrial spaces have the identical amenities so ensure to ask the property managers a lot of questions concerning them and enlist the services of experts (e.g. electrical expert) if needed to validate that the locations will fulfill your needs. To help get you going listed here are a few points you ought to keep in mind when renting Warehouse or Industrial space. You can also check out additionalwarehouse rental tips here.
Heating systems,Ventilation,and Air Conditioning (HVAC)– The majority of warehouse properties are not delivered with full building HVAC. In the case that the tenant chooses to obtain it each tenant is responsible for the install of their own AIR CONDITIONER unit. In a lot of situations you end up renting a space that had been recently leased by another company and they set up and operated an HVAC unit. Considering that you do not learn if that tenant fully took care of the HVAC Unit make an effort to avoid assuming obligation of a possibly neglected unit.
Work out with the property manager that you will purchase a COOLING AND HEATING servicing contract to keep the existing HVAC unit property serviced,however if the unit requires a major repair job or replacement unit the property owner ought to be accountable. Before signing the rental contract make sure you require that the property owner have the COOLING AND HEATING units evaluated and fixed (if necessary) and guaranteed in writing that they are in great working condition by a qualified HVAC technician.
Operating Expenses (aka NNN)– Ensure that you are aware what is and what is not covered in the operating expenses and what could be ignored (e.g. roof repairs ). Operating costs generally consist of property taxes,property insurance,and repair and maintenance. You need to understand what the property manager is likely going to pay for and what you will be accountable for.
Square Footage — Some landlord determine the square footage differently. Ensure that you find out how they are doing their computations and what they are incorporating. Ultimately you just want to pay for your usable square footage which is the actual space you occupy. Some property managers will make an effort to incorporate the area under the buildings drip lines and some will decide to calculate from the exterior of the wall vs the middle or inside.
Parking Area– Parking lots need routine maintenance (asphalt or concrete) and a number of landlord’s try to make the tenants pay for that. Repair services and routine maintenance should really be the property owner’s responsibility because is a very long term expenditure and part of future commercial property value computations. What is the utilization of the parking? Who will be utilizing it the most? Do you require to be able to park box trucks or vehicles overnight? If so make certain you have the capability to.
Zoning– Guarantee the Industrial or warehouse commercial property is zoned for your expected use. Some retail tenants (e.g. martial arts) like the idea of renting an industrial property since the rental rates are cheaper than retail. If the property is not zoned for retail use the tenants will not be able to lease it… unless the renters or the property owner wants to apply for a zoning change. You likewise need to ensure the facilities parking percentage (spaces per 1000 sf) is good enough for you. In the event that you are in need of extra then consider some other space or consider retail space.
Maintenance of the property– See to it you find out what the property manager is accountable for and what you are going to be accountable for. Trash will ordinarily be at your expenditure.
docking areas– Will you have goods delivered or picked up by means of 18 wheeler or UPS type vans? If so then you will have to have dock high loading and a truck court large enough for 18 wheelers to maneuver. Do you want to have the capability to drive box trucks or other motor vehicles inside the warehouse? If so then you may need grade level loading. Whatever the case make sure you ask if the warehouse property provides what you require or if the lessor is willing to install what you want. Trailers and eighteen-wheelers used to be 45 ft +/- however nowadays they are 60 ft +/-. What that means is you need at the very least a 120 â ² turning area. More outdated warehouse properties probably won’t be able to accommodate this.
Electrical– Confirm the warehouse properties provide power adequate for your requirements. Do you want 3 phase electrical power? If you or the lessor does not have knowledge of what is available then enlist the services of an electrician or electrical engineer to look at the property. You want to ensure that the premises has ample amperage and electrical power so you will not blow transformers or find out it’s underpowered in the future.
Ceiling Height– Ensure you ask about the clear height. If you intend on stacking materials or equipment or running large machines you need to make certain you understand how high you’re able to go. Clear heights typically range from 18 ft to 25 ft.
Expansion options– Ask the property owner if any contiguous tenants have extension options. If you intend on expanding in the future it would be great to know if you have the capability to do so. If your neighbors negotiated an option to expand on your space then negotiate to have the lessor relocate you at the property owners expense.
Flooring Load– What is the flooring load with regard to the cement slab vs what your designated use will be ?
These are just a few points you ought to diligently review prior to signing an industrial space or warehouse space contract. In the event that you think of any questions pertaining to leasing industrial property for lease or want to find out how to calculate your monthly industrial space leasing costs do not hesitate to get in touch with us!