With the many industrial parks available, it’s easy to locate the right business space. Letting an industrial space is a great way to start your business’s success. However, it’s critical to choose the right industrial premises and business location. There are many considerations to make when leasing industrial facilities and these include proximity to main roads, access to supplies, availability of parking space, and more.
Here are considerations to make when renting an industrial structure:
1. The structure’s condition
The condition of the facility is a major consideration in any decision-making. For instance, if leasing the facility under a triple net lease, you’ll be responsible for most of the property’s expenses. These may be, for instance, taxes, maintenance, repairs, and insurance.
If you rent a structure in poor condition, you may have to spend a lot on repairs and maintenance. You should thoroughly examine the condition of the roof, plumbing system, electrical system and address any issues before signing the lease agreement.
2. The amount of space required.
A business or warehouse space can be expensive, and you want to rent what you can afford. The amount of space determines the cost, and you should think of the industrial space you need. If you want a big space and think that the cost is quite high, consider sharing it.
3. Proximity to competitors, suppliers& vendors
Location is key when renting an industrial property. For instance, the industrial property Guadalajara is strategically located and offers high-end facilities and competitive rates. It offers easy access to suppliers and customers and is an ideal business facility for many.
Therefore, think of your type of business and review the location carefully. If you’re a manufacturing company requiring materials to be delivered regularly, location is a vital consideration. The facility should also be easily accessible and convenient to ship products to clients.
4. Potential risks
Is the industrial park strategically located for your needs? Are there risks of natural disasters like earthquakes, hurricanes, or tornadoes? If the building is located in a flood-prone area or other natural hazards, ensure that the building’s insurance plan covers water-related damages. This avoids losses in the case of floods and earthquakes.
5. The type of lease
Most industrial facilities are leased under triple net leases, and you’ll be responsible for most of the property’s expenses. Therefore, think of the property maintenance, upkeep, and repairs and budget for that. However, rent rates are lower with NNN lease agreements, and you can always get the best facility for your needs.
Other lease options for industrial facilities are;
- Full-service lease
In this type of lease agreement, you pay the full rent amount, and the landlord caters to most of the property’s expenses. These include taxes, insurance, and repairs.
- Modified gross lease
A modified gross lease resembles a full-service lease but includes certain negotiated expenses.
Wrapping up
Renting industrial premises is an excellent way to take your business a notch higher. These facilities are great choices for business, and there are multiple considerations to make when renting. Therefore, understand the lease terms ad seek clarifications before making a decision.
