Complete Guide To Renting Warehouse Space

Before you begin looking for an excellent warehouse space for rent for your startup, you should to get educated about the commercial space leasing process. Being ready should keep you from making hasty decisions and costly mistakes thatyou will come to regret in the future. Below are some insider suggestions to help make an informed choice when letting a commercial warehouse space your company

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

Thoroughly research your company’s present and future needs. Consult with the various department heads for input as well as some key employees.

Get acquainted with allthe commercial space terms and definitions. Various landlords state and quote things otherwise. If you are unsure about what they mean do not be afraid to ask them to get more information.

If you are not knowledgeable about the commercial property leasing process or the present market conditions then consider engaging the assistance of a tenant rep. Their services do not cost anything since landlords pay all the leasing commissions. The landlord representative will have an knowledgable listing agent representing them so it would be a great idea for you to have one also.

Personally visit all the properties that meet your requirements so thatyou can make a brief list. Keep in mind that the layouts can be reconfigured so don’t get stuck on that. Ask the landlord representatives a lot of questions regarding the ownership, property amenities, required lease duration, how much the landlord is prepared to give in tenant construction allowances, etc..

Do not settle for the first commercial space you believe is acceptable for your requirements: continue looking until you have at least 2 to 3 other options. These additional options will work to your advantage because you will know what to expect throughout the lease negotiations and you’ll gain more leverage with multiple landlords competing for your tenancy. They also give you something to fall back to if 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 needs to be in writing.

To help you decide what property is best suited for your company, 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 dimensions of the space, the asking base rental rates, the necessary lease duration, and the incremental costs (taxes, insurance, maintenance, etc). You can also take note about the pros and cons of each property. If you are budget conscious then you can quickly narrow down the list by calculating the monthly base rents for each property then removing 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 and any operating expenses then dividing by 12.

If some of the commercial buildings need tenant improvements then it is crucial that you determine what improvements you want on each and get construction bids. This way if the landlord is offering a tenant improvement allowance you will learn how much out of pocket you’ll have to pay above and beyond what the landlord is prepared to give.

Carefully analyze and compare the terms of each proposal. Consider whether it makes sense to return to each landlord to negotiate additional concessions. Make sure you completely understand the total expenses you are expected to cover. Do not get emotionally attached to a specific property until the negotiations are over. Emotional attachment might lead to you signing a contract thatyour business can’t live up to.

After negotiations are finalized and you’ve made your selection now it is time to have the landlord offer you the first draft of the commercial lease contract.

Now it is time to review the commercial lease contract. It would be wise 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 certain lease items or would like to propose new language today is the time to do so.

Once the end of lease contract negotiations has ended the landlord will give you a draft of the lease to review and sign.

There are many more things to think about when leasing commercial space however these tips will help get you going. If you are a new company leasing commercial space for the first time or an current company who has only leased 1 or 2 spaces then consider getting help from a tenant representative. Their services don’t cost you anything and you’ll save a great deal of money and time.