Don’t Settle When it Comes to Industrial Real Estate
Warehousing and distribution can be an incredibly integral part of running your business. You need to make sure you have the right location, size and space to ensure that you can run your business smoothly.
While many people negotiate for their office space and certain inclusions, sometimes people don’t take the time to negotiate for a better deal on their industrial warehouse lease!
You don’t want to settle when it comes to an industrial property, and you should be putting just as much effort into getting the best deal as you would for any other commercial real estate.
Here are some of our tips for when you are renting a warehouse!
Aim for broad lease conditions
Some leases come with conditions on what you can and can’t do with this property. It can be a good idea to consider trying to make these conditions as broad as possible.
This way, if you decide to change how your supply chain works and branch out into other ventures, you have the space in your lease to do this.
Otherwise, you may be restricted in how your business can grow.
There are also some things you should keep in mind when leasing property.
First, is the lease term. It’s a good idea to choose a term that is long enough for you to grow into and out of the space, but not too long so that it puts you in an uncomfortable financial position.
Second, is what your business will look like when you move in. If your business is a startup, you probably don’t need a lot of space. If you are looking for additional kitchen spaces or conference rooms, then it might be better to choose a larger space with more options.
Third, is your monthly cost. You should always check the location and size of the units available before looking at the monthly cost of rent.
Fourth, how much security are you willing to give up? Some people find that they like the idea of renting, but can’t commit to the level of security that owning provides. Others may think they have a more secure place already and don’t want to step up their game in terms of safety and insurance.
When you sign your lease, make sure your long-term goals for your business are well defined. Who knows, maybe one day you’ll have a bigger office and need more employees to work with. So if expansion and growth are in your future it might be a good idea to look for space that has ample room and commercial zoning so you can take advantage of potential opportunities as they arise.
This will affect both the size of the commercial property you choose, as well as the duration of your lease. With a commercial lease the length of time differs, so it can be difficult to say whether or not it’s a good idea.
Some common lengths are 10,15 and 20 years. The longer the lease, the higher your rent will be. However, that doesn’t necessarily mean that the length of your lease is always set in stone.
Industrial real estate and warehouses offer the best combination of value, location and flexible lease terms. In fact, if you’re looking for a warehouse or distribution centre, industrial real estate is the place to be.
The right industrial building can increase your business’s bottom line by providing you with more cost-effective space for your inventory. But not all buildings are created equal. So it’s important to do your research before picking a location.
You should always make sure that the building is in a location that makes sense for your business so that you can stay nimble and remain competitive in the marketplace.
Finding the perfect industrial property can be a difficult task. But it’s worth it when you find the right one.
Industrial properties are used for a wide variety of purposes such as factories, warehouses, distribution centres and even light industrial or office buildings. It’s essential to find a property that meets your specific needs and can suit the intended use of the space.
Industrial properties have evolved quite a bit over the years. It used to be that a warehouse was just a warehouse, and an office was just an office. Nowadays, there are warehouses with offices built into them, and offices with warehouses inside.
It’s extremely useful to have someone able to source and negotiate lease terms and rental prices for you.
We work on a No Win, No Fee basis, meaning there is no risk when you work with us.
We charge a 15% commission on a successful case, meaning if we win, and for example negotiate a 12 month rent free period worth $80,000, you save $68,000.
If that sounds like a good deal, then book your FREE consultation here, and get ready to save money on your next commercial lease agreement.