America has a lot of warehouse space. Since 2000, the amount of occupied space for distribution and warehouse use has gone up by 86.2%, and with the enormous growth of e-commerce a lot of companies, even small ones, are looking into commercial leases of distribution warehouse space. The future only seems to be getting brighter for this industry, too, as e-commerce is looking to grow at a compounded average of 10% a year for the next five years. That means every year there’s a lot more choice. If you?re considering leasing a warehouse, here are five important things to know as you consider commercial leases:
- Make sure you?re clear on the operating expenses. You want to know exactly what is and is not included right from the beginning. Many commercial leases will include taxes and insurance, but it?s best to find out before signing. And while some maintenance is usually included, make sure you know what isn?t.
- Be clear about the zoning regulations before you begin. Some retail tenants want to use warehouse space for things other than storage, and that?s fine. But before you go signing any commercial leases, make sure you know what activities that area is and is not zoned for.
- Make sure you and landlord are on the same page with square footage. Different warehouse storage will calculate the square footage in different ways. Make sure you know whether the calculations are from the outside of the wall or the inside, and whether they include any areas that you can?t actually occupy. That?s not necessarily a deal breaker, depending on price, but you want to know exactly how much space is yours to utilize.
- What are your options for length and weight? If you?re going to have really big trucks taking your stuff in and out, you need to be finding a warehouse to rent that can accommodate the turning radius for the size vehicles you?ll be using. You?ll also probably need to check on the floor load for your space if you?re signing commercial leases for storing very heavy things.
- What are your climate control options? Does the space you?re considering come with full HVAC? Some places will have minimal ventilation, heating, and cooling systems. Others will make each individual tenant responsible to install their now units. Some will have comprehensive, site wide HVAC systems already installed. If your goods need excellent climate control, this is definitely worth paying a bit more for.
There are plenty of other things you?ll need to consider before you sign any commercial leases on warehouse space for industrial, retail, or storage use. These are just a few of the most important. Make sure you research options in your area before you sign!