Key Questions to Ask Before Signing an Industrial Warehouse Lease

commercial warehousing

commercial warehousingThe U.S. storage and warehouse leasing industry is huge, and has an estimated worth of $26 billion. In 2014, the U.S. market absorbed a total of 70.2 million square feet of office space, which added to the four billion square feet of warehouse space built between 1990 and 2003. With retailers online and offline asking for a combined 25 million square meters in additional space over the next five years, the demand for warehousing is the highest it’s been since 2006. But many business owners looking to sign a commercial warehouse lease don’t know what it takes to find the best warehousing and distribution locations for their company. Here are a few questions business owners should ask before leasing a warehouse.

Is the lease negotiable?
Commercial leases should always have some room for negation. If a landlord is unwilling to negotiate terms with you, it’s likely a sign to look elsewhere. Terms that can be considered negotiable are the base rent, security deposit, length of the lease, renewal options, and any increase in rent.

Are there any additional costs other than rent?
Before signing a lease, talk to your landlord about the exact terms that are included in your lease. In many cases, a business will have to pay additional costs on top of their monthly rent. These costs can include utilities, taxes, property fees, or other services such as landscaping and security.

Does my company need insurance?
Many commercial warehousing landlords require companies to have an insurance policy on the warehouse space they are leasing. Even if your landlord doesn’t require insurance, experts recommend that all companies who are leasing commercial property should have at least some form of insurance to protect their assets.

How long does the lease last?
When renting a warehouse, be sure you know exactly how long the lease is in affect. Most short-term commercial warehousing leases last about three to five years, while long-term leases typically range from seven to ten years. When renting a warehouse, you’ll want to ensure the space will be able to accompany any growth that your company may experience over the course of your lease. 

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