Renting a warehouse space may be necessary for a company that is about to scale up. An industrial property landowner can also decide to lease the warehouse.
Whether you are a lessor or the lessee in warehouse leasing, you are in the right article. Read on and learn the basics of warehouse leasing.
The first question you need to ask is about the zoning of the warehouse. Is it relevant for the intended use? If not, then you cannot lease the warehouse in the first place.
Lower retail rates typically interest retail tenants to lease an industrial property. But local laws prohibit them from using it unless the landlord agrees to apply for a zoning change.
A particular warehouse might interest you because of its strategic location. But, you must also consider the size of the vehicles and the parking area.
Consider the floor load if you are planning to accommodate heavy vehicles. Do not forget about the parking area if several employees need to work on-site.
You might have maximized your warehouse space without physical expansion. You might also encounter it when you are leasing. Better ask the possible landlord about an agreement for future development.
Warehouses need appropriate zoning and enough parking area, but the purpose of leasing a warehouse is to rent a storage space.
That is why you need to compute cubic footage before making a decision. It will give you insight into the storage capacity of the warehouse you’re planning to rent.
Floor area and ceiling height are vital factors that contribute to the cubic footage. Do not aim for specific cubic footage without knowing these factors first. For example, a high ceiling might be a waste for your boxes if they are impossible or difficult to stack.
Real estate will charge you dollars per square foot. Find a long-term commitment to saving you money on your warehouse lease if possible. It might be different in your place, but lease lengths range between six months and 30 years. One year is the most common for commercial leases because it is the best for business forecasts.
Safety And Climate Control
Your immediate priority as a warehouse owner should be the safety of your employees. Your investment comes next, so ensure you have reliable safety and climate controls.
Make sure that the warehouse can protect them all from the elements. Consider summer heat, winter conditions, and human-made hazards to keep your warehouse safe.
Lighting And Other Electrical Features
Not all electrical systems are the same, and warehouses are not exemptions. Ensure the wirings inside the warehouse to accommodate all your equipment system requirements.
Your business grows, too, so you may need electrical modifications in the future. You will need to consult the landlord before agreeing to the lease. An electrical engineer is a handy companion to make sure that everything works.
NNN (Triple Net Rent)
Understand every component of the warehouse’s triple net rent. Operating costs may include building maintenance, property insurance, and taxes. Clarifying every term with the landlord will help you analyze and decide.
Maintaining a property may need you to take care of the trash cleaning safety checks and repairs. You may need ongoing or emergency maintenance, so follow local laws that include safety and regular inspections. Lastly, understand all your responsibilities for maintaining a warehouse.
Every real estate transaction requires you to wrap your head around all the terms of the lease. There must not be a fine line on the lease between you and your landlord’s responsibilities. You should get everything sorted with your team before deciding on warehouse leasing.
Getting Help When Leasing A Warehouse
These primary considerations will help you check and decide on a warehouse lease. This list might seem simple for some, but business owners may find it time-consuming.
Getting help from experts before renting a commercial space can be a wise decision. It may save you money, time, and effort in finding the best warehouse.
Contact us for help finding the perfect industrial property for lease or purchase! Schwarz Properties specializes 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. Please contact Schwarz Properties at 336-895-1336 or visit our website.