When leasing industrial space you will typically be responsible for more of the repairs and maintenance then when renting office space. For example one of the big items is that you will be responsible for are the repairs, maintenance, and replacement (if needed) of the HVAC systems, especially if you are considering industrial space for rent Austin Tx.
Because of that it’s important that you do your due diligence before leasing industrial space. Also everything is negotiable so make sure to keep the tips below in mind to ensure that you keep your industrial space costs low.
Do an Industrial Lease Audit
Before signing on the dotted line do your own math. Don’t just take the landlords word for it. Try to have the space measured to ensure the square footage is what the landlord says it is. Also, run the numbers on your pro rata share and calculate the month rent based of the base rents and operating expenses that were previously negotiated. Make sure you know how the landlord arrived at their numbers.
Energy Consumption in Warehouse Spaces
There are ways to lower your energy bills by replacing the existing light fixtures with Energy Saving ones such as LEDs. Installing motion activating lights in the bathrooms, break areas, and offices can also help to decrease your energy footprint. Looking into energy tracking software that can help you identify where the majority of your energy consumption originates.
Industrial Property Taxes
Work with the landlord to ensure that the industrial property rental is properly assessed. City tax reassessments don’t always keep up with the depreciation of an industrial property. Also research the possibility of economic tax breaks for your industry and any possible freeport tax breaks
Reduce Unused Warehouse Space
Some studies suggest that warehouse facilities are only 48% used by tenants. If you fall within this range then you are paying for more industrial space than you need. Get creative and see how you can make better use of your space and reduce wasted cubic footage. If you cannot find a use for the unused or wasted space then consider subleasing it or renegotiate with the landlord to reduce the size space your paying for or relocate to a smaller space.
Industrial Space Maintenance Technology
If work orders are completed onsite by your team consider a mobile work order dispatch application. This could decrease your need for personnel costs. One or 2 people could simply manage and input all the work orders and increase their response time
Consider Commercial Warehouse Renegotiation
Find out how the Industrial market is doing and what others are paying per sf for their space that is similar to yours. In exchange for extending your lease you may be able to negotiate a lower rate. Or maybe the landlord will throw in some tenant improvement dollars to help cover the cost of energy saving improvements that will lower your overall operating costs.