Well before you sign a commercial manufacturing space lease it’s crucial that you do your due diligence to be sure that you and the landlord are on the exact same page as to who is accountable for what.
There are numerous nuances to renting industrial and warehouse properties and even minute oversights are extremely costly. Not all warehouse spaces contain the identical features so make sure to ask the property owners a bunch of questions regarding them and enlist the services of experts (e.g. electrical installer) if needed to make sure that the properties will comply with your requirements. To help get you started listed below are a handful of aspects you should really keep in mind when renting Warehouse or Industrial properties.
These are simply a handful of points you ought to thoroughly review prior to executing an Industrial or warehouse space contract. In the event that you have any questions with regards to leasing warehouse property for rent or would love to learn how to determine your monthly industrial space rental costs don’t be reluctant to get in touch with an Austin warehouse space rental agency such as Austin Tenant Advisors.
Heating,Ventilation,and A/c (HVAC)– The majority of Industrial properties are not supplied with full building AIR CONDITIONING. If the tenant chooses to have it each tenant is responsible for the set up of their own AIR CONDITIONING unit. In a great deal of cases you end up renting out a space that was previously rented by another tenant and they put in and operated an HVAC unit. Because you do not find out if that tenant completely preserved the HVAC Unit make an attempt to avoid assuming liability of a potentially not cared for unit.
Work out with the landlord that you will buy a HVAC SYSTEM maintenance contract to keep the existing HVAC unit property maintained,however if the unit needs to get a significant repair or replacement unit the property owner should be accountable. Before executing the rental contract always require that the property owner get the HVAC units examined and replaced (if needed) and certified in writing that they are in great working condition by a licensed HVAC service tech.
Operating Expenses (aka NNN)– Make certain you know what is and what is not covered in the NNN’s and what could be excluded (e.g. roof maintenance and repairs ). Operating expenses in most cases include property taxes,property insurance,and repairs and maintenance. You need to determine what the landlord is likely going to pay for and what you will be responsible for.
Square Footage — Some landlord determine the square footage in different ways. Be sure you learn how they are performing their estimations and what they are including. Ultimately you just prefer to pay for your usable square footage which is the actual space you occupy. A few property owners will attempt to include the space underneath the facilities drip lines and some will choose to calculate from the outside of the wall surface vs the middle or inside.
Parking Area– Parking lots require repair and maintenance (asphalt or concrete) and a number of building owner’s attempt to make the tenants pay for this. Repair work and maintenance should be the property owner’s responsibility due to the fact that is a lengthy term expense and part of future commercial real estate value estimations. What is the purpose of the parking? Exactly who will be utilizing it the most? Do you need to be able to park trailers or cars over night? If so ensure you have the option to.
Zoning– See to it the Manufacturing or warehouse real estate is zoned for your intended use. A number of retail tenants (e.g. martial arts) like the idea of renting an industrial property due to the fact that the lease prices are much cheaper than retail space. If the property is not zoned for retail space use they will not be able to rent it… unless the renters or the property owner wants to apply for a zoning update. You likewise want to verify the property’s parking percentage (spaces per 1000 sf) is good enough for you. In the event that you need to get more then think about another space or consider retail space.
Repairs and maintenance of the property– See to it you what the landlord is responsible for and what you are going to be accountable for. Trash will normally be at your cost.
docking areas– Will you have food products delivered or picked up by means of 18 wheeler or UPS style vehicles? If so then you will be in need of dock high loading and a truck court large enough for 18 wheelers to maneuver. Do you want the capability to drive vans or some other motor vehicles into the warehouse space? If so then you really need grade level loading. What ever the situation ensure that you ask if the Industrial property comes with what you necessitate or if the landlord agrees to put in what you require. Trailers and trucks used to be 45 ft +/- but nowadays they are 60 ft +/-. What this implies is you have to have at the very least a 120 ′ turning radius. Much older Industrial spaces probably won’t have the ability to accommodate this.
Electrical– Ensure that the Industrial buildings have power acceptable for your needs. Do you require 3 phase electrical power? If you or the landlord does not know what is available then employ the services of an electrical contractor or electrical engineer to examine the location. You want to ensure the building has ample amperage and electrical power so you don’t blow transformers or determine it is underpowered in the future.
Clear Height– Make certain you ask how high the ceilings are. If you anticipate stacking goods or equipment or using large equipment you want to ensure that you understand how high you’re able to go. Heights typically vary from 18 feet to 25 ft.
Extension options– Ask the lessor if any surrounding tenants have extension options. If you plan on expanding eventually it may be nice to know if you have the option to do so. If your neighbors negotiated an option to expand on your space then negotiate to get the landlord relocate you at the building owners cost.
Flooring Load– What is the flooring load for the concrete slab versus what your planned use will be ? Continue Reading....Continue Reading....