Well before you sign a commercial industrial space lease contract it’s crucial that you conduct your due diligence to ensure that you and the landlord are on the same page as to who is accountable for what.
There are many subtleties to renting industrial and warehouse property and even small misjudgments are very pricey. Not all industrial spaces come with the same amenities so be sure to ask the lessors a bunch of questions about them and enlist the services of experts (e.g. electrical expert) if necessary to certify that the spaces will accommodate your needs. To help get you going listed below are a handful of facts you should keep in mind when renting Warehouse as well as Industrial property. If you would like more info about this check out AustinTenantAdvisors
Heating,Ventilation,and A/c (HVAC)– The majority of Industrial buildings are not delivered with full building HVAC SYSTEM. If they choose to have it each tenant is on the hook for the install of their own HVAC unit. In a bunch of instances you wind up leasing a space that had been recently used by someone else and they installed and used an HVAC system. Because you do not know if that occupant completely maintained the HVAC system make an attempt to avoid assuming responsibility of a possibly neglected system.
Make a deal with the landlord that you will buy a HVAC SYSTEM repair and maintenance contract to keep the existing HVAC unit property cared for,however if the system needs to get a significant repair or upgrade the property owner ought to be responsible. Prior to executing the rental contract you should always require that the property owner have the HVAC systems inspected and repaired (if needed) and verified in writing that they are in good working condition by a certified HVAC contractor.
Operating Expenses (also known as NNN)– Make sure you know what is and what is not covered in the triple nets and what maybe ignored (e.g. roof repairs ). Operating costs in most cases consist of taxes,insurance coverage,and repair and maintenance. You need to figure out what the landlord is going to pay for and what you will be accountable for.
Square Footage — Some landlord calculate the square footage in different ways. Make certain you understand how they are doing their computations and what they are including. Preferably you only want to pay for your usable square footage which is the true area you occupy. Some lessors will certainly try to incorporate the space under the facilities drip lines and some will choose to compute from the exterior of the wall vs the middle or inside.
Parking Area– Parking lots require maintenance (asphalt or concrete) and a number of landlord’s attempt to make the lessees pay for this. Repairs and maintenance should be the property owner’s obligation because is a lengthy term expense and part of future property market value computations. What is the purpose of the parking? Exactly who will be utilizing it the most? Do you require to be able to park trucks or motor vehicles overnight? If so confirm you have the ability to.
Zoning– Verify the Industrial or warehouse commercial property is zoned for your intended use. Many retail lessees (e.g. martial arts) like the idea of renting an industrial property because the rental rates are less costly than retail space. Nevertheless if the space is not zoned for retail space usage tenants will not be able to lease it… except if the tenant or the property owner desires to apply for a zoning update. You additionally want to make certain the property’s parking ratio (spaces per 1000 sf) is sufficient for you. If you necessitate more then think about some other property or rent retail space.
Repairs and maintenance of the commercial property– Make certain you find out what the landlord is responsible for and what you are going to be responsible for. Garbage will normally be at your expenditure.
Loading locations– Will you have materials delivered or picked up by 18 wheeler or UPS style vehicles? If so then you will need dock high loading and a truck court sizable enough for 18 wheelers to maneuver. Do you require the capability to drive vans or other types of motor vehicles within the warehouse space? If so then you need grade level loading. What ever the situation ensure that you ask if the Industrial building comes with what you really need or if the property owner wants to install what you want. Trailers and trucks used to be 45 ft +/- but nowadays the 18 wheelers are 60 ft +/-. What this means is you need to have at the very least a 120 â ² turning area. Some older Industrial properties may not be able to support this.
Electricity– Ensure that the Industrial buildings have electrical power appropriate for your needs. Do you want 3 phase power? If you or the property owner does not have knowledge of what is existing then hire an electrician or electrical engineer to assess the property. You want to make sure the property has enough amperage and power so you will not blow transformers or figure out it’s underpowered in the future.
Ceiling Height– Make certain you ask how high the ceilings are. If you intend on stacking items or equipment or running large equipment you want to make certain you know how high you can go. Heights normally range from 18 feet to 25 ft.
Extension options– Ask the landlord if any contiguous lessees have extension options. If you count on growing later it will be nice to know if you possess the capability to do so. If your neighbors possess an option to expand on your space then negotiate to have the property owner relocate you at the property owners cost.
Floor Load– What is the flooring load for the concrete slab versus what your proposed use will be ?
These are simply a handful of points you have to thoroughly consider in advance of executing an industrial space or Warehouse contract. If you have any questions regarding renting out industrial property for lease or want to understand how to determine your monthly warehouse space leasing cost do not be reluctant to check with us!