Have you ever been in a position where you were looking for an industrial space to rent? If so, you know how much the landlord will want to charge. They’ll be asking for at least several thousand dollars monthly and that can take a toll on your business’s finances. It would be best if you were prepared before signing any contracts because it could end up being less expensive than expected. That said, here are some questions to ask before renting an industrial rental space:
1) How Much Will It Cost?
The price of renting an industrial rental space will vary from place to place. If you have a few places in mind, it would be best if you got quotes from each one to compare them and choose the cheaper option.
It’s also a good idea to ask for discounts or freebies. Sometimes, you can get a month of free rent if you’re signing for a more extended period or even if you agree to sign their non-compete clause. Furthermore, some landlords provide discounts for long-term tenants, so keep that in mind!
Utilities can be expensive in an industrial rental space, so it would be best to find out which ones are included in the price. The landlord might consist of water and sewage, or they may require you to pay for your utilities. Either way, know the total cost of rent before signing any contracts!
3) How Long Can My Lease Be?
There are two kinds of leases: the gross lease and the net lease. The gross lease is where you pay for everything (e.g., water, sewage, etc.), while the net lease only requires that you pay for your space and nothing more. Therefore, it’s best to know which lease is offered before choosing an industrial rental space.
4) What’s the Deposit?
The deposit can also vary depending on where you’re leasing the property. The average deposit is usually one month’s rent (sometimes more), but it all depends on what you and your landlord agree to. It would be best to know how much the deposit will cost before making any final decisions.
5) What’s the Signing Process?
Some landlords require that you sign a non-compete clause, while others do not. Typically, signing this document means that you cannot run businesses similar to the one in the industrial space, but it all depends on what your property is used for.
The landlord might require you to give six months’ notice if you want to cancel your contract, or they may require that you pay the entire year in advance. It’s best to know this before you begin negotiating because it can affect your finances and how long you’re allowed to keep that property.
7) Who Is Responsible for the Repairs?
Typically, the landlord is responsible for maintaining the exterior of a property in an industrial rental space, while you are responsible for your space inside. That said, make sure to ask who will pay for what before choosing an industrial rental space that requires extensive renovations.
Have More Questions?
Industrial properties are usually expensive to rent, but these questions can help you understand how much they will cost. Furthermore, knowing the answers beforehand can give you an upper edge in negotiations because you’ll know what’s expected of each party. If you’re looking for industrial rental space, there are many options available, so do your research and ask plenty of questions before signing any contracts.