Property is one of the fundamental aspects of business and its growth. If you can get the right property, other aspects become more fluid. But getting that perfect property is full of nuances. You’ll need to check several factors before getting that perfect industrial property at a perfect location for your business. There are several factors to consider while leasing industrial properties. It may seem surprising to you which aspects of the property will influence your final decision, and even signing the lease agreement could be tricky.
This guide will make your research more productive and your decision more informed.
Service and Amenities
When you examine the property before signing a lease, determine if the service and amenities meet your requirements.
For example, do your business operations require gas for heating, or is everything electrical? If so, do you need three-phase power, which is a preference for industrial buildings, especially if you’d use heavy machinery? Plus, there’s air conditioning, ventilation, and heating to think about. So having the proper services in place is a crucial factor to consider for your leasing decision.
Tenant Covenants
Closely read through the lease to find any extra clauses relating to the type of insurance coverage you will need to carry as opposed to the owner. Also, you will need to look for language that lines out your responsibility for any refurbishment during the lease term. Get a clear understanding of what is expected of you. The lessee versus the property owner or manager’s expectations plays a significant role in leasing industrial property.
Assess the Location
Along with the facility, also check out the surrounding streets.
Do you have any competitors’ property close by?
Will your business have visibility in a high-traffic area?
Does the vicinity pose any issues that may affect your business?
Also, make sure there is adequate parking for your customers and enough space for loading and unloading. After all, business location holds utmost significance.
Net Effective Rent
The gross amount of the rent for the whole term of the lease is the net effective rent divided by every month of the rent period, including free months. One important aspect to remember is that the net effective rent will be lower than your actual rent, excluding any application or broker’s fees. So, you may need to keep this information in mind when the property owner offers you a free month or two. Your rent stays the same, but you simply pay it fewer times..
Outgoing and Maintenance Responsibilities
particularly for utilities, land tax, insurance, corporate fees, property management fees, and more. Whether you will be responsible for the building’s maintenance and to what extent also factors into your outgoings. These criteria will also be stated in your lease.
Still, have questions about what to watch for while leasing industrial property? Or need an experienced professional broker to help you with industrial real estate leasing? Allen Mayer can help you get the perfect property that meets your requirements and budget. As a professional broker with years of experience in industrial real estate Allen Mayer can also speak on your behalf, which means that you won’t have to settle for a long-term lease for a space that doesn’t meet your expectations. Plus, he will keep you apprised of any clauses during the negotiating phase. Contact Allen Mayer today for listings of available industrial properties.