Before you execute a commercial manufacturing space lease contract it’s critical that you carry out your due diligence to be certain that you and the property owner are on the exact same page as to who is liable for what.
There are countless subtleties to leasing industrial and warehouse space and even minimal misjudgments might be quite costly. Not all warehouse spaces provide the equivalent features so be sure to ask the property managers a ton of questions regarding them and work with experts (e.g. electrical installer) if required to confirm that the properties will meet your necessities. To help get you going listed here are a few facts you ought to consider when leasing Warehouse and Industrial space.
These are only a few things you must carefully assess prior to executing an industrial space or Warehouse contract. In the event that you think of any questions about leasing warehouse space for rent or wish to find out how to figure out your monthly warehouse leasing payments do not hesitate to check with a warehouse space rental agency such as Austin Tenant Advisors.
Heating systems,Ventilation,and Air Conditioning (HVAC)– Many Industrial buildings aren’t delivered with total building HVAC. In the case that they choose to obtain it each tenant is responsible for the installment of their own HVAC unit. In a great deal of cases you end up renting out a space that was previously used by another company and they had installed and used an HVAC unit. Given that you tend not to find out if that occupant fully serviced the HVAC system try to avoid assuming liability of a potentially not cared for unit.
Make a deal with the property owner that you will purchase a HEATING AND COOLING routine maintenance contract to keep the existing Heating and Cooling System property serviced,however if the unit necessitates a significant repair job or replacement the landlord must be responsible. Before executing the lease contract always require that the landlord have the HEATING AND COOLING systems inspected and repaired (if necessary) and certified in writing that they are in excellent working condition by a licensed HVAC tech.
Operating Expenses (also known as NNN)– Ensure you find out what is and what is not included in the operating expenses and what could be excluded (e.g. roof maintenance and repairs ). Operating charges almost always include taxes,insurance,and maintenance. You need to understand what the property owner is likely going to pay for and what you will be responsible for.
Square Footage — Some landlord determine the square footage in different ways. Make sure you find out how they are performing their estimations and what they are including. Ultimately you only want to pay for your usable square footage which is the actual space you occupy. A few property managers will try to include the area beneath the facilities drip lines and some will make a decision to to calculate from the outside of the wall vs the middle or inside.
Parking Area– Parking lots require routine maintenance (asphalt or concrete) and a few building owner’s attempt to make the lessees pay for this. Repair services and routine maintenance should really be the landlord’s obligation considering is a very long term expenditure and part of future commercial real estate value estimations. What is the utilization of the parking? Who will be using the parking the most? Do you require to be able to park 18 wheelers or cars over night? If so see to it that you possess the opportunity to.
Zoning– Make sure the Industrial or warehouse property is zoned for your expected use. Some retail lessees (e.g. martial arts) love the thought of leasing an industrial property given that the rental rates are less expensive than retail space. If the space is not zoned for retail space use the tenants will not be able to rent it… unless the tenant or the landlord desires to apply for a zoning modification. You also want to be sure the buildings parking ratio (parking spaces per 1000 sf) is enough for you. In the event that you may need extra then consider one more building or look into retail space.
Maintenance of the property– See to it you what the property owner is accountable for and what you will be responsible for. Trash will often be your expenditure.
docking areas– Will you have food products delivered or picked up by using 18 wheeler or UPS style trucks? If so then you will want to have dock high loading and a truck court big enough for 18 wheelers to maneuver. Do you need the capability to drive vans or other motor vehicles within the warehouse space? If so then you require grade level loading. Whatever the situation see to it you ask if the Industrial property provides what you really need or if the property owner is willing to install what you require. Trailers and trucks used to be 45 ft +/- however nowadays they are 60 ft +/-. What this means is you need approximately a 120 ′ turning area. More outdated Industrial properties might not be able to accommodate this.
Electrical– Ensure that the Industrial buildings come with electrical power adequate for your requirements. Do you require 3 phase electrical power? If you or the property owner does not have an idea what is available then get an electrical contractor or electrical engineer to assess the building. You should guarantee the building has adequate amperage and electrical power so you do not blow transformers or figure out it is underpowered later.
Ceiling Height– Ensure that you ask how high the ceilings are. If you anticipate stacking materials or equipment or using large machines you want to make certain you understand how high you can go. Clear heights normally vary from 18 ft to 25 ft.
Expansion options– Ask the lessor if any adjacent lessees possess renewal options. If you plan on growing later on it will be nice to know if you possess the capability to do so. If your neighbors negotiated an option to expand on your space then negotiate to have the property owner relocate you at the building owners cost.
Flooring Load– What is the flooring load for the cement slab vs what your anticipated use will be ?