In the real estate market, renting out a property for use as a warehouse is a significant investment option for commercial property owners. The trend of warehousing is rapidly expanding the real estate market, mainly due to the growth of the e-commerce industry over the last decade. Thanks to their extensive warehouse for lease networks, companies like Amazon and eBay have become household names in the country. However, these big companies rely on their warehouse operation to ensure that products reach customers on time; without them, such businesses cannot operate.
That said, warehouse owners may be wondering how to prepare and lease their warehouses to other companies. On that note, this article will provide such individuals with the necessary steps to prepare a warehouse for lease and earn a considerable amount of money in the process.
Plan Ahead Before Leasing
Exploring other available spaces within or near the same warehouse is recommended when leasing commercial space, as such commitments are typically long-term. This will allow the company you are in business with to easily expand if they outgrow the square footage specified in the lease agreement without relocating entirely. After all, minimizing the possibility of switching storage and fulfillment centers is important as it can disrupt both you and the business you have leased your warehouse to.
Furthermore, it’s important to consider any necessary capital expenditures to enhance the space. This could include installing an HVAC unit or adding extra shelving to increase storage capacity. Making these upgrades as soon as possible is recommended to prevent any disagreements.
After all, it’s common for a warehouse for lease to be tailored to the specific tenant, so it’s typically the responsibility of the landlord to cover the cost of any necessary improvements. However, if you choose to be generous and cover the cost as a gesture of goodwill, you can also increase the rent when the time comes to renew the lease.
Ensure Your Warehouse for Lease has the Necessary Amenities
Running a warehouse requires different considerations than running a standard office space, but some similarities remain. Basic facilities such as gender-specific bathrooms, employee break areas, and parking or transportation access are important factors that most tenants look for. Additionally, it’s important to ensure that high-speed internet is available at the location to support any necessary warehouse management software.
Specific to warehouses, it’s important to consider how the space can accommodate different products and the nature of the business. If someone leases your warehouse and deals in consumable products that require refrigeration, ensure that you provide them with ample safe storage.
Lastly, you would also want to have plans in place to maintain the road and surrounding areas of your warehouse, particularly during bad weather conditions. For instance, during snowfall, it is typically the warehouse owner’s responsibility to ensure the uninterrupted functioning of a warehouse.
Ensure You Give a Good Price
it’s advisable to provide your tenant with the option to renew the rent at either a similar or slightly higher price to ensure the competitiveness of the rental rate. This renewal option is beneficial as it allows for a shorter lease period and prevents overextension. It also allows you to retain your tenant for an extended period, especially if the location suits them.
For added assurance, it’s also possible to give your tenant the option of a buyout that could cover a shorter lease period, such as three months, with a lump sum payment instead of having to pay the full remaining lease period if they need to move out. Ultimately, the happier your tenant, the better it will be to manage your warehouse for lease.
Find the Right Warehouse Space for Your Business with Schwarz Properties Today
Whether your company is looking for a warehouse for rent or lease, the right space can make a huge difference. This is where Schwarz Properties can be your go-to for finding the right warehouse for your business needs. Visit our website to learn more about renting a warehouse, or call us at (336) 625-6076 today.