Industrial leasing is not like leasing space in an office complex, as an industrial facility may have some very unique needs that are not seen in an office. Not only might you need a larger space than you would when leasing an office, but you may need to accommodate delivery vehicles, certain materials that are brought onsite, and the like. Before you lease any space in an industrial complex, note a few important questions to ask the owner or leasing agent.
1. Note if they allow and can manage waste products generated by your company
Depending on your production facility, you may need to store and then eventually dispose of used motor oil, sludge, and the like. Some facilities may not allow such materials to be stored onsite, and this would mean having to pay for a separate facility just to store waste. On the other hand, some complexes may have a common area for this storage and may even handle the disposal of it for you. This can be very convenient for you and may be worth any extra fees you might pay for such storage and disposal.
2. Ask about a rent review schedule
Industrial facilities may offer a rent review schedule. This is a review of your rent costs on a regular basis, with the aim of offering an adjustment based on current market conditions for your industry, and the like.
This means that, as an example, if you sign a five-year lease, you may have an annual rent review schedule so that you can negotiate new lease terms every year rather than at the end of those five years. If costs have significantly risen in your industry or your business has dropped decidedly for other reasons, your lessor may work with you to adjust the rent accordingly, as a way of ensuring you stay on the premises. Ask about this schedule, especially when considering a long-term lease contract.
3. Note if tenant improvements can include the outside of the facility
A lessor may be willing to make improvements or changes to their location in order to accommodate your needs, but note if this includes the outside of the facility. You may prefer more entryways if you have trucks constantly moving in and out of the lot, the ability to add a weigh station to weigh your trucks before they leave, and so on. The owner may make these changes for you if you ask about them before signing the lease.