Just because you need to upgrade your space, this does not necessarily mean you're ready to buy. For these situations, finding an industrial property that is available for lease can meet your needs. When negotiating this type of contract, there are several key points you want to address. Learn what these factors are to ensure you're protected and entering into an agreement that benefits you.
Perform Market Research
Sometimes property owners see other businesses who are seeking a lease as being in need. They assume that if you're in desperate need, you're more likely to over pay simply to get what you're looking for as quickly as possible. No matter how perfect the property seems, it's imperative that you perform some level of market research. This effort is the only way you will know that you're getting the property at the greatest value.
Discuss CAM Requirements
In addition to the base lease cost, many industrial properties will also include CAM expenses. CAM, common area maintenance costs, typically include things like insurance, utilities, property taxes, waste collection, and other facility needs. Again, this is a separate expense. While it's custom that the lessee pays some portion of these costs, many property owners leave this area open to negotiation, so don't be afraid to ask the owner to include some of these expenses in the lease payment.
Just because a facility is industrial approved, it does not mean that it's zoned for your particular usage. It can be a complete waste of time to go through contract negotiations only to discover that your business isn't approved for the specific location. Contact the local zoning department to find out the details for any property you are considering in the very beginning of the process.
Talk about the Build-Out
Buying an industrial property is not the only time you can have a building designed to suit your needs. Many commercial lease agreements also leave leeway for build-out negotiations. Whether it's new flooring, an upgraded ventilation system, or something else, always discuss this topic. Even if you're unable to get the property owner to pay for these improvements, you'll still have an idea what you'll be allowed to do to the property.
In addition to these tips, it's always helpful to pair with a real estate professional from a company like The Schueler Group who has experience with industrial properties. Your efforts combined with theirs can help ensure you find the space you need, with the terms and costs right for your company.Share