Sometimes it is what you do not know that can hurt you the most. This is true in any circumstance, but industrial leasing is only for the well informed. This business transaction is not as simple as renting for residential purposes. Regardless of the location of the business, some expenses may not be self evident. Boca Raton, FL, which has many properties built for manufacturing, will be used as the basis of this discussion.
Industrial leases are listed at the annual cost per square foot. For example, there are many buildings in Boca Raton listed at twelve dollars per square foot. If the building has ten thousand square feet, the annual cost would be one hundred twenty thousand dollars. Divide that by twelve to get your monthly cost of twelve thousand dollars. The size of the space to be leased will greatly impact the ultimate cost.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Other costs also need to be known and identified clearly before committing to any contract. Property taxes, utilities and insurance represent added costs to the building owner. In some instances, the owner passes all or a portion of these costs onto the business leasing the property.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
The term industrial usually means the leasing business manufactures some type of product. Manufacturing may also involve the storage of manufactured products and the goods used in production. In case of a fire, the property owner may suffer damages to the property, and the leasing business may suffer loss of inventory. Insurance is an absolute necessity for both parties.
Nature affects geographic areas differently. The daily weather and the threat of extreme weather may impact decisions regarding location and insurance. Florida is subject to humidity, storms and in the worst case hurricanes. Verify that the building has been designed to withstand hazardous weather conditions. Building security is also important. Industrial areas may be prone to criminal activity, especially during the night time. Identify the responsible party and the costs of a paid security service to patrol the area.
In order to create and adhere to a realistic budget, a manufacturer needs to identify all the costs before committing to a lease. Take the time for careful review and research to accurately calculate the aggregate cost of leasing the property. An informed decision will help your business make the best decision.
If you are searching for information about industrial leasing, go to our web pages online here today. Additional details are available at http://www.danburg.com now.