subject: Understanding Warehouse Leasing and Expenses [print this page] Understanding Warehouse Leasing and Expenses
What is involved in a commercial warehouse lease regarding expenses? When you lease a warehouse or industrial property you will come across the basic lease terms of rate and expenses.
A lot of clients wish that they could be told the total monthly lease rate rather than fancy terms like rate + NNN (called triple net). So here is an easy reference to understand what triple net expenses consist of and how it affects your lease rate when you are looking to occupy a warehouse in the Austin area.
Triple net expenses are defined as follows: the tenant pays all of the operating expenses of the warehouse property which are passed thru to you from the landlord. Landlords are responsible for the roof and structure of the warehouse.
So what do these triple net expenses include? Operating expenses consist of Common area maintenance, taxes and insurance. Within that, you will have to pay for:
Utilities, Janitorial and trash removal, Insurance, HVAC issues once you have moved in along with normal repairs and maintenance.
There are also Full service leases that consist of all of the expenses incorporated into your monthly rent, Yeah! , so much easier that way, isn't it? However, not every property is marketed this way.
Can your expenses increase year to year, the answer is yes. If you have a property tax rate increase or insurance increase, those increases would be passed onto you as part of your lease.
Shire Commercial provides support to our clients throughout the whole leasing process to make sure you understand what is involved before you sign and approve a lease. Contact us today to get started on finding you best warehouse property in Austin for your needs!
Whether you need an office or a warehouse, you can get the help you need with great follow up and tools that structure the whole process for you.
