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Renting warehouse space for the most part is pretty straight forward however there are some things that should not be overlooked as they could cost you thousands later on. Below are a few of these considerations:
- Start searching for warehouse space early. If you are leasing less than 10,000 sf then 4-8 months should be fine. Larger than that then 8-12 months should be minimum. In some markets it’s harder to find space so make sure to discuss with your broker.
- Who pays for what? Don’t assume that the landlord is paying for the warehouse maintenance. You need to ASK and get in writing before signing a lease who is responsible for what costs. Costs such as NNN, electric, HVAC repair/replacement, Roof, parking lot, building, etc must be discussed and agreed to in writing. Make sure you completely understand your total monthly costs.
- How much space? Make sure you don’t lease more warehouse space than you need. It’s important to account for future growth however don’t over do it. Engaging an architect or space planner can help. They would be able to layout your racks and other equipment to make sure you use the space as efficiently as possible.
- Best Location? Take into consideration how you do business. Fuel is expensive. Where do your deliveries come from? Do you need to be close to an airport, major highway, or train? The closer to downtown you are the more expensive the warehouse space will be. Don’t always assume the best warehouse is the cheapest. Where you save in rent you end up paying more in fuel and time.
- Dock high or grade level? Do you receive deliveries by 18 wheeler or box truck? If you rely on 18 wheelers make sure you have dock high and the warehouse property has enough room for large trucks
- What Power? Not every warehouse property has 3 phase power. So if you need it make sure you ASK for it upfront. Nothing worse than leasing warehouse space only to find out after you move in it does not have enough power. Check all your equipment power needs and make sure you lease space that can accommodate.
- Create some competition. Make sure to consider more than one option when selection warehouse space. If one landlord decides to back out you still have others to fall back on. Also, when the LL’s know you are considering multiple warehouses they will put their best foot forward.
- Think about vertical height. Taller ceilings mean you can stack higher. Know how you plan to store. The higher you can go the less square footage you need.
Have questions about leasing warehouse space? Feel free to give us a buzz.
