Before you sign a commercial warehouse space lease contract it’s essential that you conduct your due diligence to be sure that you and the property manager are on the same page as to who is responsible for what.
There are numerous distinctions to renting industrial and warehouse properties and even minute errors could be extremely pricey. Not all industrial properties come with the same features so make sure to ask the property managers a ton of questions regarding them and work with experts (e.g. electrical contractor) if required to prove that the spaces will satisfy your requirements. To help get you going listed below are a handful of points you should take into consideration when renting Warehouse and Industrial properties.
These are merely a handful of points you need to carefully review prior to executing an Industrial or warehouse space contract. In case you think of any questions regarding renting industrial space for lease or wish to find out how to compute your monthly warehouse space leasing payments do not be reluctant to check with a warehouse space rental agency such as Austin Tenant Advisors.
Heating,Ventilation,and Air Conditioning (HVAC)– Most industrial warehouse properties are not supplied with total building COOLING AND HEATING. Whenever they choose to have it each tenant is responsible for the installation of their own AIR CONDITIONING unit. In a bunch of instances you wind up renting a space that was formerly contracted by another occupant else and they had set up and used an HVAC system. Because you don’t know if that company adequately took care of the HVAC Unit try to avoid assuming responsibility of a possibly not cared for system.
Talk terms with the property manager that you will buy a COOLING AND HEATING routine service contract to keep the existing HVAC system property maintained,however if the system is in need of a significant repair job or replacement unit the lessor must be responsible. Before executing the lease contract make sure you require that the lessor get the HEATING AND COOLING units inspected and fixed (if necessary) and verified in writing that they are in good working condition by a qualified HVAC specialist.
Operating Expenses (also known as NNN)– Make sure you understand what is and what is not covered in the triple nets and what maybe omitted (e.g. roof repairs ). Operating expenses almost always consist of taxes,property insurance,and repairs and maintenance. You need to understand what the property manager is 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 exactly how they are performing their computations and what they are also including. Ideally you merely want to pay for your usable square footage which is the true area you occupy. A few property managers will certainly make an effort to incorporate the space beneath the properties drip lines and some will decide to calculate from the exterior of the wall surface vs the center or inside.
Parking Area– Parking lots require maintenance (asphalt or concrete) and a number of property owner’s try to make the tenants pay for that. Repairs and maintenance needs to be the lessor’s obligation for the reason that is a long term expense and a portion of future commercial real estate value computations. What is the purpose of the parking? Exactly who will be utilizing it the most? Do you need to be able to leave trailers or motor vehicles overnite? If so make certain you possess the option to.
Zoning– See to it that the Manufacturing or warehouse real estate is zoned for your intended use. Many retail tenants (e.g. martial arts) love the idea of renting an industrial property considering the lease rates are cheaper than retail space. If the space is not zoned for retail space use they will not be able to lease it… except if the renters or the lessor is willing to apply for a zoning update. You also need to make sure the facilities parking percentage (parking spaces per 1000 sf) is good enough for you. In case you need to have more then look into a different facility or rent retail space.
Routine maintenance of the property– See to it you have knowledge of what the property manager is responsible for and what you will be responsible for. Trash will typically be at your cost.
docking areas– Will you have items delivered or picked up via 18 wheeler or UPS style vehicles? If so then you will have to have dock high loading and a truck court sizable enough for 18 wheelers to navigate. Do you want to have the ability to operate vans or other types of vehicles in to the warehouse? If so then you have to have grade level loading. Whatever the situation make certain you inquire if the warehouse building has what you necessitate or if the building owner is willing to build what you require. Trailers and eighteen-wheelers used to be 45 ft +/- although nowadays they are 60 ft +/-. What that implies is you have to have at minimum a 120 ′ turning area. More outdated industrial warehouse spaces might not have the ability to support this.
Electricity– Ensure the warehouse buildings come with power adequate for your needs. Do you require 3 phase electrical power? If you or the building owner does not know what is existing then hire an electrician or electrical engineer to evaluate the location. You should be sure the building has enough amperage and electrical power so you will not blow transformers or find out it is underpowered in the future.
Clear Height– Make certain you inquire about the ceiling height. If you plan on stacking products or equipment or using large equipment you need to ensure you understand how high you can go. Ceiling heights generally range from 18 feet to 25 ft.
Extension options– Ask the landlord if any surrounding tenants possess extension options. If you plan on growing later it might be great to know if you possess the option to do so. If your neighbors have an option to expand on your space then negotiate to get the building owner move you at the building owners expense.
Floor Load– What is the flooring load with regard to the cement slab vs what your proposed use will be ?