subject: Questions To Ask When Renting An Industrial Space [print this page] Renting an industrial space is one of the major decisions that you will make in your professional life. Therefore, just because you think the space may be ideal, it does not mean that you should place an offer because you think it fits your needs. There are many excellent questions that you need to ask before placing you bid for an industrial space. Everything from the space lease terms to other random fees, all of your questions need to be answered. A quick tip is that if the person you are asking cannot answer your questions, then this industrial space is not for you. Not only do you want a great space but you also want a great person to buy from who is reliable and trustworthy.
What makes the difference between leasing a space and not? The answer is simple, the rent. The price of rent is often the deciding factor. Some companies generally know how much they are able to spend on their renting budget. If the buildings lease is higher than the companys budget, the company will not sign the lease. Watch out for hidden fees. Just because the rent fits into your budget, the additional costs that you did not anticipate, may not. So there are various questions you need to ask. Begin with the following:
Rates are often increased by fees called CAM and Loads fees. Therefore, the first question you need to ask is how much is the base rent? The base rent is also known as the useable square footage of space.
Look for negotiable leases. With a negotiable lease, you will be able to discuss options like the base rent, free rent, the length of the lease, increased annual rent and fee rates, security deposits and renewal options for the lease. Ask the seller if the terms of the lease can be negotiable.
Sellers always go over the rent rates but they may not talk about the additional costs. Ask if there are any property fees, CAM fees or special taxes that you may have to pay in addition to the rent. Each of these fees should be identified with a price that you have to pay and when you have to pay it.
The rent rate can be increased every year as well as the fees. You should definitely inquire about how much (percentage wise) the fees can increase per year.
There may be certain utilities that are included in the rent so ask about them. Are the utilities included, security, landscaping fees and taxes included in the lease or are they additional fees on top of the rent rate? If the seller says certain utilities are included, then you should make sure that everything that is said to be included is written on the lease for your security.
Any question that comes across your mind should be clarified. Never sign a lease without having all of your questions clearly answered because they are important. You should never be left with a doubt before signing an important industrial lease. If the seller cannot answer these questions then it is time to find a new industrial space.
