9 Things to Think About Before Leasing a Warehouse

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9 Things to Think About Before Leasing a
Warehouse
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• If you are a business owner looking to rent
  warehouse space, you must understand that not all
  warehouse spaces are created equal. Preliminary
  research will save you time, money, and
  disappointment if you choose a warehouse space
  that does not work for you and your company.
• Warehouse and industrial space can be used for a
  variety of purposes, such as storage,
  manufacturing, and distribution. Each Industrial
  property you consider will have its own set of
  specifications and responsibilities, so make sure
  you understand the facilitys intended use and
  ask pertinent questions to the landlord and
  listing agent to ensure space meets your needs.

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1. Examine Your Storage Consumption.

• Some landlords use a specific method for
  calculating square footage. Check to see if they
  are calculating and what they are including.
  Ideally, you should only pay for the available
  square feet, which is the actual room you occupy.
  Some landlords will try to include the area
  beneath the drip lines of the building, while
  others will measure from the outside of the
  warehouse.
• In addition to considering available square
  footage in a factory, you should also consider
  cubic square footage. The ceiling height comes
  into play here. Make sure you have enough
  vertical space if you need to stack items, boxes,
  or pallets. Theres no reason to pay to rent
  space with a high ceiling if you dont need
  stacking space.

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2. Planning and Zoning

• To ensure urban growth and development, land in a
  municipality is divided into zones. Zones specify
  which types of businesses and properties are
  permitted. They can be commercial, industrial, or
  residential in nature.
• It is critical to consider the location of your
  prospective property as well as its assigned
  zone. Industrial lease rates can be lower, but if
  the warehouse space is to be used for retail, the
  landlord must be able to apply for zoning changes.

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3. Parking Area

• Some landlords try to charge tenants for parking
  lot maintenance (asphalt or concrete). Employee
  parking, deliveries and pickups, overnight
  parking, and regular use are all possible uses
  for a parking lot. Repairs to the parking lot
  should be the landlords responsibility because
  they are a long-term expense and part of
  determining potential property value.
• The parking lot must be sufficiently large to
  accommodate your company. If your business relies
  on tractor-trailer deliveries, your parking lot
  must be large enough to accommodate these
  vehicles. If necessary, confirm that trucks and
  other vehicles are permitted to park in the lot
  overnight.

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4. Heating, Ventilation, and Air Conditioning
(HVAC)

• The majority of warehouses do not have
  full-building HVAC. Each tenant is responsible
  for installing their own HVAC unit if they choose
  to have it. In many cases, you will be leasing a
  space that was previously leased by someone else,
  and they will have installed and used an HVAC
  unit. Because you dont know if the previous
  tenant maintained the unit properly, try to avoid
  taking on the responsibility of a potentially
  neglected unit.
• Negotiate with the landlord to pay for an HVAC
  maintenance contract in order to keep the
  existing HVAC unit in good working order.
  However, if the unit requires extensive repairs
  or replacement, the landlord should be held
  accountable. Before signing the contract, always
  demand that the landlord have the HVAC units
  inspected, repaired (if necessary), and certified
  in writing by a certified HVAC technician that
  they are in good working order.

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5. Operating Costs

• The operating costs and whether they will be
  included in the lease are critical components of
  regular warehousing operations. Consider what
  your contract covers and what it does not cover,
  such as roof repairs, taxes, insurance, and
  maintenance. As the tenant, you may be liable for
  some or all of these expenses. You can inquire
  about day-to-day maintenance costs, such as who
  will be in charge of the lawn and garbage
  collection.Your primary goal should be to
  identify potential warehouses that can handle
  your volume while keeping the products secure in
  the interim. Price should not be the first
  priority, but it will be eventually. When youve
  narrowed your options down to a couple or three,
  compare prices for the services you require.

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6. Electrical Power

• Make sure to inquire about the buildings power
  supply with the landlord to ensure that it meets
  your electrical requirements. Before leasing out
  the warehouse, make sure it has enough electrical
  outlets. If you plan to use heavy electric
  vehicles inside the factory, ensure that there is
  enough power for charging and day-to-day
  operations. It is recommended that you hire an
  electrical engineer or electrician to inspect and
  evaluate any warehouse property for lease. They
  would know if the building has enough amperage
  and power to prevent extreme events like a
  transformer blowing up.

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7. Loading Docks

• Make sure to inquire about the buildings power
  supply with the landlord to ensure that it meets
  your electrical requirements. Before leasing out
  the warehouse, make sure it has enough electrical
  outlets. If you plan to use heavy electric
  vehicles inside the factory, ensure that there is
  enough power for charging and day-to-day
  operations. It is recommended that you hire an
  electrical engineer or electrician to inspect and
  evaluate any warehouse property for lease. They
  would know if the building has enough amperage
  and power to prevent extreme events like a
  transformer blowing up.

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• Open- The truck is parked in front of an exposed
  open dock area. They are also more difficult to
  manage in bad weather.
• Depressed- These docks have an inclined driveway,
  which necessitates extra caution on the part of
  the driver in order to avoid damaging the house.
• Flush- These seem to be the most popular docks,
  with the loading dock opening flush with the
  structure. Ensure that there is a dock bumper
  outside to protect the building from damage
  during docking.
• Enclosed- A shell protects these docks from the
  elements. These typically require ventilation to
  prevent dangerous levels of automotive fumes from
  accumulating.
• Sawtooth pattern- In buildings with limited road
  space, trucks may be required to park at a
  45-degree angle to the dock, resulting in a
  sawtooth pattern. This usually necessitates
  additional warehouse space but has the added
  benefit of aligning the trucks for easy exit.

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8. Place(Location)

• Keep your location in mind when deciding where to
  lease warehouse space. Before signing a warehouse
  contract, conduct a thorough investigation of the
  surrounding area. Is the warehouse easily
  accessible from major highways? Are there any
  restaurants or service businesses nearby that
  your employees could visit? Is it legal for your
  company to operate a warehouse in the area? You
  should also consider how your employees will get
  to the new location, whether by public
  transportation or accessible parking.
  Understanding the existing commercial real estate
  market dynamics in the area will help you
  determine whether proposed rents are reasonable.

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9. Safety

• This may be the most important factor to consider
  when renting warehouse space. If youre storing a
  lot of valuable items in the warehouse, make sure
  theyre secure. You will lose a lot of money if
  your warehouse is broken into and your goods are
  stolen. Is the area around the warehouse fenced
  in, and do you need a code to enter? This is an
  important first step in security because a fence
  would deter many thieves from attempting to enter
  the warehouse. You can also consult with your
  landlord about installing electrical fencing for
  your warehouse if necessary. Is there any
  oversight? Guard patrols on a daily basis will
  also be a significant deterrent to criminals.

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Conclusion Plan ahead of time before leasing a
warehouse space.

• Although operating a warehouse differs from
  operating a standard warehouse and office for
  rent Dubai, there is some overlap. Simple
  amenities such as mens and womens restrooms,
  break areas, employee parking, and access to
  public transportation are all important
  considerations. You should also look into the
  availability of high-speed internet at that
  location, in case your warehouse management
  software (WMS) or inventory management system
  (such as Digital Warehouse) requires it.Then
  there are warehouse-specific factors to consider,
  such as the spaces ability to handle a wide
  range of goods and your business type. If your
  company manufactures perishable goods that
  require refrigeration or generates hazardous
  waste, you can raise these concerns before
  signing the lease contract. Youll need a plan in
  place for safely storing and disposing of any raw
  materials or byproducts.
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