We already shared seven factors that you have ton consider when leasing industrial space, especially if you are used to leasing office space. Here are six more that you are likely either not used to considering or that you may need to look at differently than you usually would.
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1. Building Square Footage
As we already discussed, a space's
cubic footage might be a more
important metric than its square
footage. It is also important to
understand exactly how the space is
measured. While the rectangular
spaces in these buildings are typically
simpler to measure than complicated
offices, landlords can still find ways to
make errors in their own favor.
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In industrial space, it can be important to ensure that the
nearby tenants are compatible. As in offices, having an
adjacent space with an incompatible business can be
challenging. In addition, because suitable space that meets all
of your company's exact needs can be hard to find, leasing a
location where neighbors have the option to expand over you
could leave you looking for a replacement space in the future
when your lease rolls over or, even worse, leave you without
any suitable replacement.
2. Nearby Tenants
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It goes without saying that industrial space is usually much
less expensive to operate than office or retail space.
Furthermore, services like utilities that are frequently billed in
common in offices are usually billed separately in industrial
space. Another important difference is that certain expense
items -- like repairs -- can have a more significant impact on
your total occupancy cost in warehouse and similar space.
As such, understanding what your exposure can be and how
it is calculated is very important.
3. Operating Expenses
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While you might be used to calculating whether or not a
building has enough parking spaces, the standard for
industrial properties is different. Typically, the employee-to-
space ratio is relatively low, but you may need room for large
trucks and trailers to maneuver around the space. If your
company receives shipments in 54 to 60 foot trailers, your lot
needs to have at least 120 feet of clear space for those trucks
to turn around. It should also be configured so that all of the
dock doors that you will be using are fully accessible.
4. Maneuvering Space
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Another expense that can come into play with
these spaces is the cost of maintaining and
repairing the parking lot. Industrial lots are
frequently much larger than office lots and
subject to much heavier use, due to the
presence of trucks. While it isn't unreasonable to
expect that you would bear at least some of your
pro-rata share of a building's total cost, buildings
with lots in disrepair could come out to be much
more expensive than they seem once the repair
bills get applied to your OpEx reimbursements.
5. Parking
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6. ZONING AND LOCAL LAWS
Just because you find a building that suits
your needs does not mean that your have
the right to conduct your business in that
space. While most general office zoning
allows just about any type of office-using
business to operate from that zone, industrial
zoning laws are much more complicated.
Inquiring as to permitted uses before you go
too far down the line with a given property
can save you time and money.