The Simplest Way To Rent Commercial Warehouse PropertyThe Simplest Way To Rent Commercial Warehouse Property
Before you start searching for the perfect warehouse space for rent for your small business, you should to get educated about the commercial warehouse leasing procedure. Being ready should prevent you from making hasty decisions and costly mistakes thatyou will regret later on. The following are some insider tips to help make an informed decision when leasing a commercial property your business
Start the process of finding commercial real estate for lease at least 6-12 months before your existing lease terminates or before your ideal move-in-date. Finding the right space and negotiating the deal alonewill take 1-2 months depending upon the size space and current market conditions. In most cases the spaces you like will need some sort of improvements which the time required will depend on the scope of work.
Thoroughly examine your business’s current and future needs. Consult with the various department heads for input in addition to some key employees.
Get acquainted with allthe commercial space terms and meanings. 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 familiar with the commercial real estate leasing process or the current market conditions then consider engaging the help of a tenant rep. Their services do not cost you anything since landlords compensate all the rental fees. The landlord rep will have an knowledgable listing agent advising them so it would be a great idea for you to have one as well.
Physically see all the properties that meet your requirements so thatyou can make a short list. Bear in mind that the layouts can be reconfigured so don’t get stuck on that. Ask the landlord agents a great deal of questions about the ownership, property amenities, required lease term length, how much the landlord is prepared to give in tenant improvement allowances, etc..
Don’t settle for the first commercial space you believe is acceptable for your requirements: continue searching until you have at least two to 3 alternative options. These additional options will work to your benefit because you will know what to expect during the lease negotiations and you’ll gain more leverage with numerous landlords competing for your business. They also give you something to fall back to whether the negotiations to your first choice go sideways.
Send out proposals to your top three to five options. These aren’t legally binding. You never need to have a landlord representative’s verbal note. 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. Some of the things you should consider include the size of the space, the inquiring foundation rental rates, the required lease term, and the incremental expenses (taxes, insurance, maintenance, etc). It is also possible to 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 eliminating those which are way above your budget. The monthly base rent is calculated by multiplying the industrial space square feet by the asking base rate plus any operating expenses then dividing by 12.
If some of the commercial properties need tenant finish-outs then it’s essential that you determine what improvements you want on each and get preliminary bids. That way if the landlord is offering a tenant improvement allowance you will know just how much out of pocket you’ll need to pay above and beyond what the landlord is prepared to give.
Carefully examine and compare the terms of each proposal. Consider whether it is logical to return to each landlord to negotiate extra concessions. Be sure you fully understand the total expenses you’re expected to cover. Don’t get emotionally attached to a specific property until the negotiations are over. Emotional attachment might lead to you signing a contract thatyour business cannot live up to.
After negotiations are finalized and you have made your selection now it’s time to have the landlord offer you the first draft of the commercial rental contract.
Now it’s time to review the commercial rental contract. It would be advisable for you to hire an attorney to review the lease. For those who have a tenant representative then they can review the lease with you as well. 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.
Once the end of rental contract negotiations has finished the building owner will supply you a draft of the lease to sign.
There are many more things to think about when renting commercial space however these ideas will help get you going. If you’re a new business renting space for the first time or an existing business who has just leased one or two spaces then consider getting help from a tenant rep. Their services don’t cost you anything and you’ll save a great deal of time and money.