Ultimate Guide To Renting Industrial Warehouse Properties

Before you start looking for the perfect warehouse space for rent for your small company, you will need to get educated about the commercial space leasing procedure. Being prepared will keep you from making rapid decisions and costly mistakes thatyou will end up regretting later on. Below are some insider tips to help make an informed decision when renting a commercial real estate your business

Start the process of locating commercial space for rent at least 6-12 months before your current lease terminates or before your perfect move-in-date. Locating the right space and negotiating the deal alonewill require 1-2 months depending on the size area and current market conditions. In most cases the spaces you like will require some sort of tenant improvements that the time required will depend on the scope of work.

completely analyze your business’s current and future needs. Consult with the different department heads for input as well as some key employees.

Get familiar with the commercial real estate terms and definitions. Different landlords state and quote things differently. If you’re in doubt about what they mean do not be afraid to ask them to supply more info.

If you’re not knowledgeable about the commercial rental process or the current market conditions then consider engaging the assistance of a tenant agent. Their services do not cost anything since building owners compensate all the rental commissions. The landlord agent will have an knowledgable listing agent helping them so it would be a great idea for you to have one also.

Physically tour all the spaces that meet your needs so thatyou can make a short list. Keep in mind that the designs can be reconfigured so don’t get stuck on that. Ask the landlord reps a great deal of questions regarding who owns the property, property amenities, required lease duration, how much the landlord is willing to give in tenant construction allowances, etc..

Don’t settle for the first commercial space you believe is suitable for your needs: continue searching until you have at least 2 to 3 alternative options. These extra options will work to your advantage since you will know what to expect throughout the lease negotiations and you’ll gain more leverage with multiple building owners competing for your company. They also give you something to fall back to whether the discussions for your first choice go sideways.

Send out proposals to your top three to five options. These aren’t legally binding. You never need to take a landlord representative’s verbal word. Everything should be in writing.

To help you decide what property is best suited for your business, prepare a spreadsheet to do an apples to apples comparison of each property. A few of the things you need to put into consideration include the size of this space, the asking base rental rates, the necessary lease duration, and the incremental expenses (taxes, insurance, maintenance, etc). You can also take note about the advantages and disadvantages of each property. If you’re budget conscious then you can quickly narrow down the list by calculating the monthly base rents for each property then removing those that are way above your budget. The monthly base rent is calculated by multiplying the industrial space square feet from the asking base rate plus any operating expenses then dividing by 12.

If some of the commercial spaces require tenant improvements then it’s important that you figure out what improvements you want on each and get preliminary bids. This way if the landlord is offering a tenant improvement allowance you will know how much out of pocket you’ll have to pay above and beyond what the landlord is willing to give.

Carefully examine and compare the terms of each proposal. Consider whether it is logical to go back to each landlord to negotiate extra concessions. Make sure you completely understand the total expenses you’re expected to cover. Don’t get emotionally attached to a certain property until the discussions are over. Emotional attachment might result in you signing a contract thatyour business can’t live up to.

After discussions are finalized and you’ve made your selection now it’s time to have the landlord offer you the first draft of this commercial rental contract.

Now it’s time to reassess the commercial rental contract. It would be wise for you to hire an attorney to review the lease. For those who have a tenant agent then they can review the lease with you also. Industrial lease language can be negotiated. If you do not like particular lease items or want to propose new language now is the time to do so.

When the end of rental contract negotiations has finished the landlord will supply you a copy of the lease to sign.

There are several more things to consider when renting commercial space however these suggestions will help get you started. If you’re a new business renting commercial space for the first time or an current business who has just rented one or 2 spaces then consider getting help from a tenant agent. Their services don’t cost you anything and you’ll save a great deal of time and money.