Before you sign a commercial warehouse space lease it’s crucial that you carry out your due diligence to verify that you and the property manager are on the exact same page as to who is responsible for what.
There are many nuances to renting industrial and warehouse space and even minute errors maybe extremely expensive. Not all warehouse properties provide the identical amenities so be sure to ask the property managers a bunch of questions concerning them and enlist the services of experts (e.g. electrical expert) if necessary to warrant that the properties will accommodate your requirements. To help get you started below are a few facts you ought to take into consideration when renting Warehouse as well as Industrial space.
These are just a few points you have to diligently consider prior to executing an industrial space or warehouse space lease contract. In the event that you have any questions regarding renting out warehouse space for rent or would like to learn how to compute your monthly warehouse space rental cost do not be reluctant to connect with your warehouse leasing company such as Austin Tenant Advisors.
Heating,Ventilation,and Air Conditioning (HVAC)– Many warehouse buildings aren’t built with full building COOLING AND HEATING. Whenever the tenant chooses to have it each tenant is on the hook for the installation of their own HVAC unit. In a great deal of instances you end up leasing a space that had been formerly contracted by another tenant and they had set up and used an HVAC unit. Because you don’t know if that tenant properly preserved the HVAC Unit make an effort to refrain from assuming responsibility of a potentially not cared for unit.
Work out with the property manager that you will buy a HVAC SYSTEM routine maintenance contract to keep the existing HVAC unit property maintained,however if the unit is in need of a major repair job or replacement unit the landlord ought to be responsible. Before executing the contract make sure you require that the landlord get the COOLING AND HEATING units examined and fixed (if necessary) and verified in writing that they are in excellent working condition by a certified HVAC service tech.
Operating Expenses (aka NNN)– Ensure you find out what is and what is not included in the operating costs and what could be left out (e.g. roof repairs ). Operating costs typically consist of property taxes,insurance,and repairs and maintenance. You need to realize what the property manager is going to pay for and what you will be accountable for.
Square Footage — Some landlord compute the square footage in different ways. Make certain you learn precisely how they are performing their calculations and what they are including. Preferably you simply wish to pay for your usable square footage which is the actual space you occupy. Some property managers will make an effort to include the space beneath the properties drip lines and some will make a decision to to calculate from the outside of the wall surface vs the middle or inside.
Parking Area– Parking lots necessitate routine maintenance (asphalt or concrete) and a number of landlord’s attempt to make the renters pay for that. Repair work and routine maintenance needs to be the landlord’s obligation considering is a lengthy term expenditure and a component of future property market value calculations. What is the operation of the parking? Exactly who will be utilizing the parking the most? Do you want to be able to leave box trucks or motor vehicles overnight? If so be sure you possess the capability to.
Zoning– Ensure that the Industrial or warehouse property is zoned for your planned use. Many retail renters (e.g. martial arts) love the concept of renting an industrial space considering that the lease prices are cheaper than retail space. If the property is not zoned for retail space use they will not be able to rent it… except if they or the landlord wants to apply for a zoning update. You likewise need to ensure that the property’s parking ratio (spaces per 1000 sf) is enough for you. In the event that you want more then look at a different facility or lease retail space.
Routine maintenance of the commercial property– Make sure you learn what the property manager is responsible for and what you will be responsible for. Trash will usually be at your expenditure.
Loading areas– Will you have food products delivered or picked up by 18 wheeler or UPS style trucks? If so then you will really need dock high loading and a truck court big enough for 18 wheelers to maneuver. Do you have to have the ability to operate box trucks or other types of vehicles in to the warehouse? If so then you may need grade level loading. Whatever the situation see to it you ask if the Industrial property comes with what you require or if the landlord agrees to build what you require. Trailers and eighteen-wheelers used to be 45 ft +/- however these days the trucks and trailers are 60 ft +/-. What that means is you are in need of approximately a 120 ′ turning area. Some older warehouse spaces might not be able to support this.
Electricity– Ensure that the Industrial buildings provide power sufficient for your needs. Do you require 3 phase power? If you or the landlord does not have an idea what is existing then work with an electrician or electrical engineer to look at the building. You want to ensure the property has enough amperage and power so you don’t blow transformers or determine it is underpowered later on.
Ceiling Height– Make certain you ask about the ceiling height. If you plan on stacking items or equipment or operating large equipment you need to ensure that you understand how high you can go. Ceiling heights in most cases vary from 18 ft to 25 ft.
Extension options– Ask the landlord if any surrounding renters possess expansion options. If you count on expanding in the future it would certainly be great to know if you get the capability to do so. If your neighbors possess an option to expand on your space then negotiate to get the landlord move you at the building owners cost.
Flooring Load– What is the flooring load for the cement slab versus what your intended use will be ?