Well before you execute a commercial industrial space lease it’s crucial that you conduct your due diligence to verify that you and the property manager are on the exact same page as to who is on the hook for what.
There are lots of subtleties to renting industrial and warehouse property and even little mistakes might be quite pricey. Not all industrial spaces come with the comparable amenities so ensure to ask the lessors a lot of questions concerning them and hire experts (e.g. electrical contractor) if required to prove that the properties will comply with your needs. To help get you started listed here are a handful of facts you should think about when renting Warehouse as well as Industrial property.
These are only a handful of things you must thoroughly consider prior to executing an Industrial or Warehouse lease contract. In case you have any questions about renting industrial space for rent or want to know how to determine your monthly warehouse leasing costs do not hesitate to contact an Austin warehouse rental agency such as Austin Tenant Advisors.
Heating,Ventilation,and Air Conditioning (HVAC)– Many Industrial buildings are not delivered with whole building AIR CONDITIONING. If they choose to get it each tenant is on the hook for the install of their own HEATING AND COOLING unit. In a ton of circumstances you end up leasing a space that had been recently leased by another person and they set up and operated an HVAC unit. Given that you usually do not know if that occupant fully cared for the unit make an attempt to avoid assuming obligation of a potentially neglected unit.
Negotiate with the property manager that you will purchase a COOLING AND HEATING servicing contract to keep the existing Heating and Cooling System property cared for,however if the unit requires a significant repair or replacement unit the lessor must be accountable. Before executing the lease contract make sure to require that the lessor get the HEATING AND COOLING units examined and replaced (if needed) and guaranteed in writing that they are in great working condition by a certified HVAC technician.
Operating Expenses (also known as NNN)– Make sure you are aware what is and what is not included in the operating expenses and what can be excluded (e.g. roof repairs ). Operating costs generally include taxes,insurance,and repairs and maintenance. You need to understand what the property manager is going to pay for and what you will be liable for.
Square Footage — Some landlord determine the square footage differently. Make sure you know precisely how they are doing their calculations and what they are also including. Ideally you only want to pay for your usable square footage which is the actual space you occupy. A few lessors will certainly try to include the space beneath the buildings drip lines and some will choose to compute from the outside of the wall surface vs the center or inside.
Parking Area– Parking lots require repair and maintenance (asphalt or concrete) and a number of property owner’s attempt to make the lessees pay for this. Repair services and maintenance needs to be the lessor’s responsibility for the reason that is a long term expenditure and a portion of future commercial property market value calculations. What is the use of the parking? Who exactly will be making use of it the most? Do you require to be able to park box trucks or motor vehicles overnite? If so ensure that you have the option to.
Zoning– Confirm the Industrial or warehouse property is zoned for your planned use. Many retail lessees (e.g. martial arts) like the concept of renting an industrial property due to the fact that the rental costs are much cheaper than retail. Nonetheless if the commercial property is not zoned for retail usage tenants will not have the ability to rent it… unless the tenant or the lessor desires to apply for a zoning change. You also want to make certain the facilities parking percentage (spaces per 1000 sf) is good enough for you. In case you want to have more then look into a different building or look into retail space.
Maintenance of the commercial property– See to it you find out what the property manager is responsible for and what you will be accountable for. Garbage will in most cases be your cost.
Loading areas– Will you have materials delivered or picked up by means of 18 wheeler or UPS type vans? If so then you will need to have dock high loading and a truck court large enough for 18 wheelers to navigate. Do you require the ability to operate vans or other types of motor vehicles in to the warehouse space? If so then you may need grade level loading. Whichever the situation see to it you inquire if the Industrial space provides what you require or if the building owner wants to install what you require. Trailers and trucks used to be 45 ft +/- although these days the 18 wheelers are 60 ft +/-. What this suggests is you are in need of at the very least a 120 ′ turning area. Older Industrial buildings probably won’t have the ability to accommodate this.
Electrical– Make certain the Industrial properties have electricity appropriate for your requirements. Do you require 3 phase electrical power? If you or the building owner does not have knowledge of what is available then work with an electrician or electrical engineer to look at the property. You should ensure the building has ample amperage and electrical power so you will not blow transformers or find out it’s underpowered later.
Clear Height– Ensure that you inquire about the clear height. If you anticipate stacking products or equipment or operating large machines you want to make sure you understand how high you’re able to go. Heights generally vary from 18 feet to 25 ft.
Expansion options– Ask the building owner if any adjacent lessees have extension options. If you count on growing eventually it will be great to know if you possess the chance 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 landlords expense.
Floor Load– What is the floor load for the concrete slab vs what your intended use will be ?