Vacancy rates for warehouse space were around 4.7% in 2021. As a result, leasing a warehouse for your business might take more time than ever.
However, you can still find space to rent – but it might take some work.
Do you need warehouse space for your business? You might need it for storage, fulfillment, or something else. In any case, you might wonder what to look for when leasing warehouse space.
Check out this guide as we explain seven tips to lease a warehouse space for your business.
1. Choose a Commercial Real Estate Company
You can find warehouse space for lease yourself, but you’ll benefit by hiring a commercial real estate company to help you.
Here are several reasons why you want to hire a pro when you lease a warehouse:
- They have connections
- They’ll find what you need and want
- You’ll have more options
- They’ll know what to look for
- You won’t have to do the work
A commercial real estate company handles the work for you. You can tell them what you’re looking for, and they’ll get to work. The agent will tell you about the options they find and show them to you.
You can even look at property listings online. Then, you can tell your agent if you find any you like.
If you’re looking for an industrial lease for your business, you shouldn’t attempt to do this alone.
2. Understand Cubic Feet
If you’re new to leasing a warehouse, you might have questions about how they describe the space and costs. One thing to note is that it’s different with warehouse space than when buying a home.
When you shop for a home, you can compare the size of homes by their square footage. The square footage refers to the amount of living space in terms of floor space.
Warehouse space often comes in terms of cubic feet. The primary difference is they not only factor in the floor space. But they also factor in the cubic feet, the area from the floors to the ceilings.
Companies lease warehouse space to have a place with tall ceilings. After all, they can use this space for storage and other things.
3. Determine Your Top Needs
Every small business is unique. In other words, your business is different from all other businesses. Thus, your business has unique needs for the warehouse space you select.
Keeping this in mind is vital when choosing the right space. You can determine your top needs by creating a list.
For example, what is your main purpose for the space? What will your company use this space for when you rent it? What features are must-haves?
Creating a list of your top needs is helpful when you are looking for a small warehouse for rent. You can give the list to your real estate company, so they have a guide when searching for space. You can also use the list as you tour properties for rent.
4. Evaluate the Controls You Need
Another top factor to evaluate is the controls. The controls include the following:
HVAC System
What type of HVAC system does the building have? If you have employees working in the warehouse all year, you might need to consider if the system can keep them warm and cool.
Fire Suppression System
Additionally, having a fire suppression system is also vital for most businesses. If the warehouse doesn’t have one, consider the costs of installing one.
Security System
Every business also needs an effective security system. Security systems protect employees and business assets.
Electrical System
You might also check the current electrical system. For example, does it provide enough power for your machines and equipment? If not, how much will it cost to upgrade it?
5. Assess the Docking System
Most warehouse businesses require docks for trucks. You might have trucks coming to your business to drop off goods. Additionally, you’ll have trucks leaving your business transporting goods to customers.
A docking system provides the space to handle these tasks. Trucks can pull up to the dock to load or unload as needed. Of course, you will need to make sure that those who are driving and operating the trucks are people you know and can trust. Accidents can happen, and even minor ones could even call for someone like this Tampa Semi Truck Accident Lawyer to get involved and protect the rights of anyone involved, so it’s important that the risk of this is minimized as much as it can be.
But how many docks does your business need? You can compare this number to the number of docks at an available warehouse.
You can also consider the dock types, as there are different ones. Will these docks work for your company’s operations?
6. Add Up the Operating Expenses
Next, you should also consider the cost of leasing a warehouse before signing the contract. A warehouse costs money for the rent, which you must pay monthly.
Additionally, you’ll have other expenses with the space. For example, you’ll have utility bills. You could ask the property owner for estimates to learn more about these costs. Knowledge of these costs could be particularly useful if you are considering funding such as business loans for the new setup, as your lender will likely require financial details like these before signing off on a loan.
You might also want to talk to your insurance company to learn about the insurance costs for the space. An insurance company can give you a quote for the space if you provide the address and some other information.
7. Consider the Lease Details
It’s always wise to discuss the lease details before signing a contract for warehouse space. Every property owner uses a unique lease and will provide it to you if you ask.
One thing to discuss is the lease length. Does the owner require a long-term lease, or are they willing to give you a one-year lease?
Next, how does the property owner handle building upgrades? Do they allow upgrades? If so, what’s the process for making the changes?
You might also negotiate the monthly rental amount. Again, the owner might not budge on the price, but they might be willing to give you a guarantee they won’t raise the price for a specific time.
Evaluate These Things When Leasing a Warehouse
Leasing a warehouse is a vital part of many businesses, as it provides the space your company needs for its operations. As a result, you should take your time when choosing space and factor these things into your decision.
We recommend Googling G3 Real Estate for all your warehouse lease needs. G3 Real Estate specializes in helping companies find the right commercial space to lease for their businesses.
