Before you execute a commercial industrial space lease contract it’s very important that you conduct your due diligence to make sure that you and the property manager are on the same page as to who is liable for what.
There are many subtleties to renting industrial and warehouse properties and even little errors might be quite costly. Not all warehouse properties possess the same features so make certain to ask the property owners a bunch of questions about them and hire experts (e.g. electrical contractor) if required to validate that the spaces will comply with your requirements. To help get you started listed here are a few aspects you should really contemplate when renting Warehouse as well as Industrial properties.
These are merely a few points you should very carefully consider prior to signing an Industrial or warehouse space lease. In the event that you think of any questions with regards to renting warehouse space for rent or wish to understand how to calculate your monthly warehouse space leasing cost do not hesitate to reach out toyour warehouse leasing company such as Austin Tenant Advisors.
Heating,Ventilation,and A/c (HVAC)– Most warehouse properties aren’t delivered with whole building A/C. If they choose to obtain it each tenant is responsible for the set up of their own HEATING AND AIR unit. In a lot of instances you wind up renting a space that had been already contracted by another tenant and they had installed and utilized an HVAC system. Considering you tend not to find out if that occupant appropriately cared for the HVAC Unit make an attempt to avoid assuming liability of a potentially not cared for system.
Work out with the property manager that you will pay for a COOLING AND HEATING repairs and maintenance contract to keep the existing HVAC unit property serviced,however if the system needs to get a major repair or replacement unit the landlord should be responsible. Before signing the rental contract be sure to require that the landlord get the COOLING AND HEATING systems evaluated and repaired (if necessary) and guaranteed in writing that they are in good working condition by a professional HVAC service tech.
Operating Expenses (also known as NNN)– Make sure you find out what is and what is not covered in the operating expenses and what can possibly be left out (e.g. roof maintenance and repairs ). Operating expenditures normally consist of taxes,insurance,and repairs and maintenance. You need to know what the property manager is going to pay for and what you will be accountable for.
Square Footage — Some landlord calculate the square footage in different ways. Make sure you understand exactly how they are performing their computations and what they are also including. Preferably you just prefer to pay for your usable square footage which is the actual space you occupy. Several property owners will certainly try to include the space under the facilities drip lines and some will decide to calculate from the outside of the wall surface vs the middle or inside.
Parking Area– Parking lots need repair and maintenance (asphalt or concrete) and many building owner’s try to make the tenants pay for this. Repair work and routine maintenance should be the landlord’s responsibility for the reason that is a long term expenditure and a component of future commercial property market value computations. What is the use of the parking? Exactly who will be making use of it the most? Do you need to be able to leave trailers or automobiles overnite? If so see to it you have the capability to.
Zoning– Confirm the Manufacturing or warehouse property is zoned for your planned use. A few retail tenants (e.g. martial arts) like the thought of renting an industrial property because the rental costs are cheaper than retail. Nevertheless if the space is not zoned for retail use renters will not have the ability to rent it… unless the renters or the landlord wants to apply for a zoning change. You also need to make certain the facilities parking percentage (parking spaces per 1000 sf) is enough for you. In the event that you have to have extra then look into one more facility or rent retail space.
Repair and maintenance of the property– Make certain you determine what the property manager is responsible for and what you will be responsible for. Trash will ordinarily be at your expense.
Loading locations– Will you have goods delivered or picked up by using 18 wheeler or UPS type vehicles? If so then you will need to have dock high loading and a truck court large enough for 18 wheelers to maneuver. Do you require the ability to operate box trucks or other motor vehicles within the warehouse space? If so then you require grade level loading. What ever the case make certain you ask if the warehouse space provides what you need or if the building owner is willing to build what you want. Trailers and trucks used to be 45 ft +/- however, nowadays the 18 wheelers are 60 ft +/-. What this means is you need at least a 120 ′ turning radius. Much older warehouse spaces may not have the ability to support this.
Electricity– Confirm the warehouse buildings possess power adequate for your requirements. Do you want 3 phase power? If you or the building owner does not have an idea what is available then tap the services of an electrician or electrical engineer to evaluate the location. You want to guarantee the property has adequate amperage and power so you do not blow transformers or discover it is underpowered later.
Clear Height– Ensure that you ask about the clear height. If you intend on stacking materials or equipment or running large machines you need to make sure you understand how high you can go. Ceiling heights generally vary from 18 ft to 25 ft.
Renewal options– Ask the property manager if any surrounding tenants have extension options. If you count on growing later it would be good to know if you have the potential to do so. If your neighbors have an expansion option on your space then negotiate to get the building owner move you at the lessors cost.
Floor Load– What is the floor load for the cement slab vs what your intended use will be ?