Why does a business need a warehouse and industrial space? When business operations expand, it naturally gives rise to storage requirements, leading to the demand for warehouses and industrial space. Are you in need of warehouse/industrial space for rent? But unsure of how to rent warehouse and industrial space? In this article, we provide you with detailed information that will help you understand the basic terms of the lease, how to analyze the space requirements, and how to lease warehouses and industrial space.

Identify the space needs for warehouse and industrial operations

With numerous businesses operating differently, the definition of spacing solutions varies for each business. For certain businesses, it might be just storing goods, while for others, it could be a combination of storage and producing goods. Whatever the case might be, it is imperative to be clear about the type of warehouse space your business requires. Depending upon the nature of the business, you can consider the requirement of warehouse and industrial space for rent to satisfy the logistics operations. Usually, the industrial properties fall under these three categories, each of them differs in functionality:

1. Warehouse space?
   Warehouse space is generally used for the storage and distribution of goods. In warehouses, no major activities are conducted other than certain minor functions like packing or labeling. Warehouse space is also used as a distribution center.
2. Industrial space
   On the contrary, Industrial space is utilized for manufacturing, assembling, production, conduct meetings, helpful for businesses with unique requirements. Based on your distinct needs, you may require specific construction to ensure smooth business activities. Light industries and heavy manufacturing industries need industrial space to carry out their business activities.
3. Flex space
   Flex space is termed as the combination of both the above-mentioned spaces. A warehouse of this kind can serve both the purposes of warehousing and manufacturing. Datacentres, R&D buildings, and showrooms require flex space.
4. Built-to-suit(BTS) facility
   BTS facilities are developed for businesses with specific requirements to perform business activities. Such facilities are designed especially for businesses having specific demands concerning the warehouse/ industrial space. Depending upon the nature of your business, you can either go for warehouse space, manufacturing/factory space, or a mixture of all three, which https://primeassociatess.com/ is fully capable of providing.

Locating the right place for renting commercial/industrial property

For any business and industry, location plays a crucial role in the advancement of business. But how to rent warehouse and industrial space at the best location? How can you settle on the perfect location for operating the business? For an importer/ exporter, renting an industrial space near airports and seaports might be more beneficial, facilitating business productivity and profitability. Similarly, a company dealing directly with consumers might want to lease a warehouse closer to the city areas. Depending upon the nature and type of business, you might want to ascertain how to rent warehouse and industrial space at a desirable location to maximize the business operations. Consider these factors before zeroing in on the location of the warehouse and industrial space:

• Consider the rent, rates, and taxes
• Type of the business operation
• Location’s proximity to conveyances such as airport, highway, and highway
• Availability of workforce and skilled labor
• Proximity to other businesses
• Zoning of the land
• Accessibility to the location

These factors will enable you to select the optimum location for your warehouse and industrial space. Prime Associates offer warehouse and industrial spaces on lease at the most accessible and convenient locations of Kheda, and Surat in Gujarat.

Where to look for the commercial and industrial properties?

With numerous options for warehouse and industrial spaces available in the market for lease, there are different ways to look out for commercial and industrial properties. You can either contact the landlord directly, hire a real estate agent, or use an online database to find the most suitable space to fit your requirements. However, as a lot of data can be misleading or inaccurate online, appointing a professional might be the more realistic choice, though the agent might not always provide an unbiased opinion. On the other hand, if you are well aware of the market, you can contact the landlord directly to inquire about the available industrial property for lease. Presently, numerous landlords handle the negotiations directly and provide relevant information regarding the warehouse and industrial space(well, who knows the property better than the owner himself.)

Determine the property features needed for the logistics operations

Before you initiate the search and shortlist the properties, be mindful of all the requirements of your business. Consider all the factors and measures, such as:

• Determine the monthly rental budget you can afford to pay.
• Calculate the space required to operate the business seamlessly.
• Consider the possibility of more space requirements in the future.
• Ascertain the ideal location for your logistics business- do you need to be closer to a specific mode of transport, i.e., airports, highways, seaports, railways, or maybe suppliers, customers?
• Which specific features do you want in your warehouse/industrial space? It could be a reinforced ceiling, particular floor height, loading/unloading docks, high power supply, extra security measures, and so forth.
• Will you need additional parking or an added yard area?
• Do you have any special requirements other than the basic needs and amenities?

Determine the zoning of the land

If land-zoning is an issue for any of the shortlisted properties, be sure to inquire whether the warehouse/industrial space can be used for the intended purpose. Commercial and industrial properties are governed by different rules and regulations depending on the zone in which they are located. Business activities that involve hazardous chemicals cannot be carried out in commercial zones. In contrast, heavy industries like mining industries, manufacturing companies, machinery-equipment industries are generally located in the industrial zone. Be sure to consider the land zoning before you rent a warehouse or industrial space. You might want to verify if the landlord permits the business you want to conduct in the property.

Site Visits Of Warehouse And Industrial Spaces

The next step is to visit the commercial/industrial properties once you have shortlisted the space that fits your criteria. The industrial space may seem perfect online, but touring the site will provide a clearer picture of the actuality. Be clear of all your logistics requirements, note down all the criteria, and compare each property with the list of jotted down conditions mandatory for the business operations. Compare each property with the factors mentioned below:

• Size of the property
• Rental rate per square foot
• Availability of the basic amenities
• Ample parking facilities
• Specific power supply(three-phase)
• Safety measures like fire hydrants, water sprinklers, and so on.
• Security measures such as CCTV cameras, security cabins, etc.
• Responsibility for the additional costs
• Minimum lease term of the property
• Potential future expansion options

Make sure to inspect two to three properties to get a clear picture of the warehouse/industrial space that would be the perfect fit for enhancing the logistics operations of the business.

Finalizing the commercial and industrial space

Once the site inspection is done, do not hasten to rent the warehouse and industrial space. Consider 2 to 3 options before finalizing the contract. Having other options available gives you an upper hand, beneficial for negotiating and securing the best arrangement. Ask the landlord if you are permitted to renovate or remodel the space to suit your requirements. The answer may not always be positive, though it’s worth trying. Ask for the contracts and start the negotiating process, sign the lease with the property that serves your interest, making sure the industrial space meets your needs.

Understand The Basics Of Commercial/Industrial Lease

A commercial/industrial lease is more extensive and complicated as compared to a residential lease. Each lease is tailor-made for the business. It involves more negotiations as the terms vary for each business. The two most popular types of lease are Gross lease and Net lease.

• What is a gross lease ?
  This lease is termed as tenant-friendly as it covers all the expenses in one payment in the form of rent. It is considered an all-inclusive lease since the landlord pays for insurance, maintenance and service charges, and janitorial services, from the rent received from the tenant. However, the tenant must be clear about the additional charges liable if any utility is consumed beyond the limit. The tenant may be charged extra for such consumption. In the gross lease, the landowner is responsible for the building, whereas the tenant can focus on the growth of the business.
• What Is a Net lease ?
  In the net lease, apart from the basic rent, the tenant is liable for all other types of operating expenses such as taxes, insurance, repairs, maintenance charges, and janitorial services. Triple net lease(NNN) is the most popular commercial lease. Also known as the NNN lease, the tenant is responsible for all the charges. There is no fixed amount of rent since it changes according to variations in the overhead expenses. Triple Net lease is considered a landlord-friendly lease, hence the tenant should carefully examine the terms and legalities. The rent amount fluctuates each month depending upon the changes in the operating expenses. Though the tenant may save up on the operating expenses, it may be a tedious task to keep track of the overhead expenses each month, sometimes it may go over the budget.

Tenure of the lease

Industries operating on a large scale usually rent warehouse and industrial space for at least 3 years, while the maximum term has no upper limit. For instance, a BTS facility developed for a particular client would have a longer lease term as compared to a warehouse rented by a business for general purposes. While different locations may have varying minimum lease terms, some may impose maximum term restrictions on warehouse and industrial space leasing. It is therefore imperative that you understand the lease term before letting the commercial/industrial property. Consider the space requirement as you determine the lease term. Keep in mind how long you will require the warehouse or industrial space on lease. If the business will upgrade or downsize in the future, rent the commercial/industrial space accordingly. If you break the lease before the expiration, you might have to pay a hefty amount as compensation. Likewise, the landlord may not increase the lease term once it expires.

Evaluate the lease terms carefully

Upon finalizing the industrial property, and drawing a lease, be sure to carefully examine all the terms of the lease. Take into account all the factors mentioned in the lease, such as operating expenses and contingencies, ensuring you understand all the terms and conditions. Keep these things in mind while reviewing the lease contract:

• Understand the calculation of base rent and the operating costs
• How much will be the security deposit?
• Will the landlord provide heating or cooling equipment, if required?
• Which party will be liable for service and maintenance charges?
• What will be additional charges for over-consumption of utility?
• Who will pay for utilities and garbage disposal?
• Which party will be responsible for repairs and additional expenses?
• Can the tenant sublet the property?
• Which utilities will the landlord provide? (gas, electricity, water supply)
• The yearly increase in the base rent and operating expenses. (if any)
• Options to renew the contract
• What will be the provisions for breaking the contract before the end of the term?

Once all the terms are evaluated carefully, clear all the queries with the landlord to avoid potential conflicts in the future. With Prime Associates, you get a fair and transparent lease, benefiting both parties.

Negotiate the terms of the lease

Once you have analyzed the lease, compare the leases of the shortlisted properties and negotiate regarding the fields other than the rent and lease term. The lease clearly dictates the terms of both parties. Leases are negotiable, therefore, strive to create a lease beneficial for both the parties, advantageous to the investment and logistics operations of the tenant. Consider asking for additional certainty on the operating costs and flexibility for renewal of the lease or breaking the lease. Before renting industrial or warehouse space, it is recommended to consider all logistics factors ensuring the security of your logistics business.

Documentation and signing the lease

Examine and perceive all the terms carefully to understand what you are signing up for. If the lease is complex, do not hesitate to ask for a professional’s help. Make sure all the conditions agreed upon are mentioned in the contract. Furthermore, you might be asked for proof such as passport or utility bills to confirm your identity. Before you can move in, you will need to sign the lease or contract, as well as present all the related documents, such as permits, identity proofs, company seals, and so forth. You will need to pay/ transfer the security deposit and payable rent as agreed in the lease by both parties. As the mode and regularity of payment differ for each contract, you will be required to make the payments as mentioned in the contract. Sign the dotted line only when you are assured of all the legal and technical aspects of renting a warehouse and industrial space.

Move-in and commence the business operation

Once the lease is signed and the deed is done, you are all set to move into your new warehouse/industrial space to start the logistics operations. Upon receiving the keys to the property, you can begin operating the business right away.

Wrapping up

Though renting a warehouse and industrial space is a complex process, it doesn't always have to be that way. Prime Associates makes sure our clients experience a smooth process for renting the warehouse and industrial property. We ensure to find the perfect warehouse space for your logistics business. Do you have any other queries on how to rent warehouse and industrial space? Feel free to get in touch at +91 70461 09001 or mail us at info@primeassociatess.com. Our team will assist you with all your queries and help you find the perfect warehouse and industrial space.