Starting a new business or trying to expand an existing one is scary. Especially with statistics revealing that 18% of businesses fail within the first year.
We are not just talking about how the market will receive your product. There is the worry of raising funds and hiring the right team. Of course, there is also the stress of dealing with property managers and their endless clauses.
After the pandemic, you may even be wondering if you need to find an industrial space for rent. People are embracing remote work after all.
We have answers for you below. This article will cover what you need to know about renting industrial space, including the types of leases to consider and how to work your lease into your budget.
Why Should You Consider Renting an Industrial Space?
If you are looking to grow your business or even expand, working from a factory or even renting a warehouse will give you the space you need for your growing enterprise.
You won’t have to worry about property tax, maintenance, or even repairs depending on the type of lease agreement you enter into. You can leave all this in the hands of your property managers while you concentrate on your business.
Types of Leases to Consider When Looking for an Industrial Space for Rent
Gross lease leaves the running expenses of the industrial space in the hands of the landlord and not the tenant. It could be maintenance services, insurance, or even property tax; they all become the responsibility of the landlord while yours is to concentrate on your business.
The base rent associated with a gross lease is often higher than the rent in other types of leases. But it may well be worth it. You will worry about building utilities and the rent.
A net lease is categorized by the sharing of financial responsibility between the landlord and the tenant. In this type of agreement, both the landlord and tenant share payment on building tax, maintenance, and insurance.
Your rent will be lower in this type of lease and offer you some financial flexibility. You will, however, have to find a budget to take care of janitorial services and other building responsibilities.
Modified Gross Lease
A modified gross lease brings together the gross lease and the net lease, particularly the triple net lease. Modified gross lease agreements vary. However, in all agreements, the landlord and tenant share operational costs like maintenance and janitorial fees.
The percentage at which they share the costs will depend on the lease agreement.
Also, Check – Why Are People Buying Their Second Home and Renting the First?
How to Choose an Industrial Space for Rent?
Once you have decided to rent an industrial space, there are some questions you and your business partners need to answer. We have a few suggestions below:
What Is Your Capacity?
Before you decide on a property to lease, decide on what you need it for. Will it be primarily for storage or are you expecting to have some offices on the grounds as well?
What Is Your Budget?
How much are you willing to splurge on your rent? This will help you narrow down your search for property.
What Is Your Prime Location?
Location is a very important aspect to consider when seeking an industrial space rent. How far from the sphere of influence do you want to be? Or is your prime location within the CBD?
G3 Real Estate has a plethora of properties across California, which will have you only minutes from your customers.
Settle into Your New Space
Finding an industrial space for rent shouldn’t be rocket science. But it can be difficult without the right property management.
At G3 Real Estate, we can help you find your next industrial space for rent. Contact us to hear how we can help.