Industrial property leasing: what you should know before signing
Category Newpoint Property
Leasing industrial property can be challenging, given the amount of paperwork and complex agreements. However, the process can be navigated easily with the appropriate guidance on key considerations.
Knowing the most important things to look for in a lease gives you the power to make smart choices, whether you're a new business trying to make a mark or an established one looking to grow. If you want your leasing experience to go smoothly, make sure your lease includes everything you need.
1. Get to know the location you're leasing
The location of a property should be thoroughly researched before entering into a lease agreement. For instance, leasing industrial property in an area with inadequate transportation networks can negatively affect your business's operational efficiency.
Things to look for:
- The location must be close to the target market: Choose an area near your target market to ensure easy access and attract potential clients.
- Able to reach transport routes: Transporting goods and travelling to work should be easy for your employees.
- Safety and security of the area: Make sure the property's location is safe to move goods and for employees to work there safely.
2. Check for suitability for business operations
When selecting a property, it's essential to consider its size, layout, amenities, and regulations. Thoroughly evaluating a property will enable you to determine whether it can effectively support your business activities and contribute to its success.
The industries and facilities needed:
- Manufacturing company: This industry requires large warehouses and factories for raw materials storage and production lines.
- A company dealing with food: Property with commercial kitchens, cold storage areas, and clean production areas.
- Automotive business: You'll need a lot of open space for vehicle storage and repair bays.
- Warehousing and logistics: It will be necessary for your property to have ample storage space, loading docks, and easy access to transportation routes so that goods can be moved efficiently.
- Utilities: A large amount of storage, as well as distribution infrastructure, is needed.
3. Consider lease terms for your business
There are several things to consider while negotiating your company's lease conditions. First, consider the lease's duration to be sure it will provide you with the stability or flexibility you need to run your company. Look at the price to see if it is competitive and within your budget. You can ensure that the lease agreement's terms and conditions are reasonable, fair, and in line with your company's needs by reviewing them in great detail.
4. The frequency of lease payments
Tenants and landlords often have different payment terms based on their agreements. During the lease period, it is essential to clearly define the payment conditions, including the frequency of payments (such as quarterly or yearly).
5. Property maintenance responsibilities
Most often, landlord-tenant disputes revolve around the state of repair of the property and ongoing maintenance and repair problems that occur during a tenancy. The contract should clearly define who's responsible for property maintenance, repairs, and improvements, whether the landlord or the tenant.
Landlords are often responsible for repairs and upkeep, whereas renters are responsible for minor repairs and maintenance. In some lease agreements, landlords would be responsible for roof repairs or major property improvements, while tenants are responsible for routine cleaning, landscaping, and minor plumbing work.
6. Consider the potential for expansion on your lease
As your business grows, finding out if the lease allows expansion or renegotiation is imperative. Lease extensions, renewals, and first-refusal rights for nearby properties are necessary provisions for the lease. Incorporating this will ensure a seamless process without relocation.
Whether you're looking for an industrial park or warehouse property, Newpoint Property has excellent options. Browse the available industrial properties to let, and find the ideal space for your company. Get in touch with our property practitioners today for more information.
Author: Newpoint Property