Are you planning to rent business warehouse space? As organisations expand, many of them need a larger space to store their products and inventory.
Warehouses provide the necessary space and conditions for storing various types of products. Nevertheless, there are multiple factors to take into account when choosing such a unit, including square footage, property features, accessibility, lease type and length of tenancy etc.
If planning to rent a warehouse near you, follow the tips below to make the best choice.
Consider the square footage
The initial point of consideration when renting a business warehouse is square footage. Business owners should calculate the amount of room they need for their products and whether it’s feasible to stack them. Additionally, if there is no forklift access, you should reconsider the space you’ll need to stock all products at ground level.
Moreover, it’s important to determine if the current square footage amount will be enough after several months or a year. Make sure to ask the landlord whether you’ll be able to rent more space on short notice. Also, it’s important to determine the way in which the landlord calculates the square footage, as you should only pay for the space you use. It’s important for the walls not to be considered as part of the price per square foot.
Check the property features
Another important factor to take into account is property features. It’s essential for the landlord to provide parking spaces in order for employees to have where to park when they arrive at the location. Some lessees require a storefront with more visibility, such as having glass doors and windows, whereas others need the traditional one.
Air conditioning is of vital importance for warehouses, as some products require such a system to keep the products in optimal condition. If your stock is likely to be affected by cold, heat or humidity, there should be a HVAC system. Not many landlords offer climate-controlled storage units, meaning you should discuss the installation of the system with the agent. Find out more about the way in which HVAC systems work.
Furthermore, warehouses usually come with overhead doors, which is convenient for lessees planning to use machinery and trucks to go inside and out of the unit. Therefore, make sure to get informed on the height and width clearance of the unit. If your business involves constant loading and unloading of materials, you would need a loading dock.
Additionally, it’s paramount to check whether the warehouse has energy-efficient lighting, as it can reduce your costs significantly. Each unit should be equipped with a fire-prevention system, such as alarms and sprinklers. These systems are essential for preventing fire damage to your stock.
Consider the lease type and length
The lease type should be tailored to fit your business, which is why business owners need to go through a process of negotiation. There are two types of commercial leases, gross and net leases. For instance, gross leases require tenants to pay a higher monthly rent, including taxes, maintenance, insurance, utilities and other costs.
In the case of gross leases, lessees are required to make a single payment, while the landlord will be in charge of dealing with the building. Nevertheless, you should ask which types of maintenance and janitorial services are provided, as well as check whether you will be responsible for paying for utility consumption over a given limit. Follow this URL https://www.investopedia.com/terms/g/gross-lease.asp#:~:text=A%20gross%20lease%20is%20a,office%20buildings%20and%20retail%20spaces., to learn more about the types of gross lease.
Conversely, net leases require tenants to pay a base rent on a monthly basis and a pro-rata share of the other costs related to the building, depending on the amount of space they occupy. Nevertheless, you should also pay for your own utilities and janitorial services. In theory, net leases are less expensive due to the savings in operating expenses. The monthly rate, however, is prone to fluctuating and more difficult to budget.
Potential tenants should also keep the lease length in mind by making forecasts. For example, if you need the space just for a couple of months, there is no need for a long-term commitment. Anyhow, if you plan to use the warehouse space for years, you can negotiate a longer term of five to ten years and take the price down. Business owners who aren’t looking for commitment should find a landlord that offers month-to-month renting.
After deciding on a lease, you should request the landlord to provide you with a copy of the document. Make sure to examine it closely by looking at all expenses and hidden fee provisions. Tenants are advised to review the document with a commercial real estate attorney prior to signing anything.
Final word
Make sure the space is designed for maximum efficiency and has 24/7 security. Don’t make unnecessary commitments!
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