Before you execute a commercial manufacturing space lease contract it’s critical that you conduct your due diligence to be certain that you and the property owner are on the same page as to who is responsible for what.
There are a lot of distinctions to renting industrial and warehouse properties and even minute misjudgments maybe extremely costly. Not all industrial spaces have the same amenities so be sure to ask the property owners a bunch of questions concerning them and enlist the services of experts (e.g. electrician) if needed to verify that the properties will comply with your requirements. To help get you started listed here are a handful of facts you need to keep in mind when renting Warehouse as well as Industrial properties. If you would like more info about this check out AustinTenantAdvisors
Heating systems,Ventilation,and Air Conditioning (HVAC)– Many Industrial properties aren’t built with whole building HEATING AND AIR. Whenever they choose to have it each tenant is responsible for the set up of their own HEATING AND AIR unit. In a ton of circumstances you wind up leasing a space that had been recently rented by someone else and they had installed and used an HVAC system. Because you tend not to learn if that company adequately serviced the HVAC Unit make an effort to refrain from assuming responsibility of a potentially neglected system.
Discuss with the property owner that you will pay for a COOLING AND HEATING routine maintenance contract to keep the existing HVAC unit property serviced,however if the system needs a significant repair job or upgrade the landlord must be accountable. Before executing the lease contract be sure to require that the landlord get the HVAC units examined and serviced (if necessary) and verified in writing that they are in excellent working condition by a licensed HVAC service tech.
Operating Expenses (also known as NNN)– Ensure that you are aware of what is and what is not included in the operating expenses and what can possibly be excluded (e.g. roof repairs ). Operating charges typically include taxes,property insurance,and repair and maintenance. You need to understand what the property owner is likely going to pay for and what you will be responsible for.
Square Footage — Some landlord calculate the square footage differently. Ensure that you know how they are doing their estimations and what they are also including. Ideally you only prefer to pay for your usable square footage which is the actual area you occupy. A few property owners will make an effort to incorporate the area under the buildings drip lines and some will make a decision to to calculate from the outside of the wall vs the center or inside.
Parking Area– Parking lots need maintenance (asphalt or concrete) and a few landlord’s try to make the occupants pay for that. Repair work and routine maintenance should really be the landlord’s responsibility given that is a lengthy term expenditure and a component of future commercial real estate market value estimations. What is the usage of the parking? Who will be using it the most? Do you need to be able to leave trucks or automobiles overnight? If so ensure you possess the opportunity to.
Zoning– Confirm the Industrial or warehouse real estate is zoned for your expected use. A few retail occupants (e.g. martial arts) like the thought of renting an industrial property due to the fact that the lease prices are much cheaper than retail space. However if the space is not zoned for retail space use they will not be able to lease it… unless they or the landlord is willing to apply for a zoning modification. You also want to ensure that the buildings parking ratio (parking spaces per 1000 sf) is enough for you. If you require extra then look at another building or look into retail space.
Maintenance of the property– Make certain you find out what the property owner is accountable for and what you are going to be accountable for. Garbage will usually be your expense.
docking areas– Will you have goods delivered or picked up by using 18 wheeler or UPS style vans? If so then you will be in need of dock high loading and a truck court big enough for 18 wheelers to navigate. Do you require the capability to drive vans or other types of vehicles into the warehouse? If so then you require grade level loading. Whichever the case see to it you ask if the warehouse property provides what you really need or if the building owner agrees to build what you want. Trailers and eighteen-wheelers used to be 45 ft +/- although these days the trucks and trailers are 60 ft +/-. What that implies is you need to have at least a 120 â ² turning radius. Older Industrial commercial properties probably won’t be able to support this.
Electricity– Verify the warehouse buildings come with power adequate for your requirements. Do you want 3 phase power? If you or the building owner does not know what is available then employ the services of an electrician or electrical engineer to evaluate the property. You should make sure the building has plenty of amperage and power so you do not blow transformers or determine it is underpowered later.
Ceiling Height– Ensure you ask about the clear height. If you anticipate stacking products or equipment or using large machines you want to ensure you know how high you can go. Heights typically vary between from 18 feet to 25 ft.
Expansion options– Ask the property owner if any surrounding occupants possess renewal options. If you count on expanding in the future it might be nice to know if you get the option to do so. If your neighbors negotiated an option to expand on your space then negotiate to get the building owner relocate you at the building owners expense.
Floor Load– What is the flooring load for the concrete slab vs what your proposed use will be ?
These are merely a handful of details you must thoroughly consider in advance of executing an Industrial or Warehouse lease. If you have any questions pertaining to leasing industrial space for lease or would like to know how to calculate your monthly warehouse lease cost do not be reluctant to check with us!