There’s a lot to keep in mind when you start to consider leasing an industrial rental property – costs and contracts, locations and lease terms. It can seem daunting, especially if this is your first time looking at industrial rental properties. Taking things one step at a time and keeping your information organized can make the process easier.
Determine Your Needs
Start by figuring out what kind of industrial rental property you are looking for – are you leasing a warehouse for storage, do you need manufacturing space, or are you looking for a mixed-use space where you can do both?
How much space do you need? If you intend to find an industrial rental property for storage or if you have large manufacturing equipment, you have to know how much space you actually have. Calculate the cubic square footage of the space by multiplying the square footage of the floor by the ceiling height, then remove any space that cant be used, such as pillars or office areas. Remember to allow room for your business to grow, too. Leases often span multiple years, and you don’t want to be stuck in a space that is too small. A good rule of thumb is to aim for 20% more space than you need right now. It’s also a smart idea to research adjacent and nearby industrial rental properties and find out if they might be available for lease in the future.
Where are you looking to rent a property? Keep in mind what you need to be closest to – customers, suppliers, methods of transportation, or something else. The location of your property can simplify some logistical issues in your business.
What features do you need? Do you need office space, truck loading docks, certain lighting and electrical systems, parking space for employees, security, or other features?
You need to determine your budget as well. That budget should include not just rent, but utilities, insurance, taxes, maintenance, and more. You should also consider the up-front expenses of moving into a new space, like transportation, equipment, renovations, and signage.
Research Properties
Does your budget match your needs? You may have to compromise on some features to fit a space into your budget or raise your budget to get everything you need. Research the cost of industrial rental properties in your target area to determine if your budget is realistic.
Start searching online. There are websites that can help you find industrial rental properties in a particular area.
Visit properties that seem like a good fit and talk to the real estate agent. A property may sound good when it’s reduced to a list of features, but visiting in person is the best way to determine if it’s really what you need. Don’t hesitate to talk to the real estate agent about what you need, as they can be very helpful at pointing out potential issues and can give you information that might not be included in the listing.
Compare Lease Terms
Use your research and in-person viewings to narrow down the list to your top three options for an industrial rental property. Once you’ve done that you can start comparing the lease terms of each property.
Leasing contracts can be incredibly complex. Start with the simple pieces of the lease, like the length of the lease, when payments are due, and how much the security deposit is.
Then look into how responsibilities will be divided between you and the landlord. Who deals with and pays for repairs? Can you renew the lease, and what happens if one of you breaks the lease? Can you sublease the property?
Read the leases carefully, and get the details worked out before you sign so there are less likely to be disputes after you sign.
Are You Ready to Find an Industrial Rental Property?
Contact Schwarz Properties! We specialize in commercial and residential property management in Virginia, South Carolina, and North Carolina. We lead the market for industrial and warehouse spaces for lease, and our portfolio also includes retail space, restaurant space, residential, office space, and many more. Call us at 336-625-6076 or visit our website.
