Signing a commercial real estate lease for industrial space can be a complex process, and it’s important to understand the terms and conditions involved before you sign. Here’s what you need to know:
- Review the lease agreement: Make sure you thoroughly review and understand the lease agreement before you sign it. This should include the term of the lease, the rent amount, and any additional costs or fees that may be associated with the lease.
- Negotiate the terms: If there are any terms of the lease that you’re not comfortable with, try to negotiate them with the landlord. This may include the rent amount, the length of the lease, or the terms of renewal.
- Consider the location: Make sure the location of the industrial space meets your business needs. Consider factors such as accessibility, proximity to suppliers or customers, and the local zoning laws.
- Building and facility specifications: Make sure you understand the building and facility specifications, including the size and layout of the space, the type of loading docks and drive-in doors, and the ceiling height.
- Maintenance and repairs: The lease agreement should specify who is responsible for maintenance and repairs. Make sure you understand who is responsible for repairs and maintenance, and what the process is for making repairs.
- Utilities and services: Make sure you understand the utility and service costs associated with the space, and who is responsible for paying these costs.
- Renewal options: Make sure you understand the options for renewing the lease, and what the terms and conditions are for renewal.
- Legal representation: Consider seeking legal representation to review the lease agreement and advise you on the terms and conditions involved.
- Finalize and sign the lease: Once you have reviewed and negotiated the lease agreement and are comfortable with the terms and conditions, sign the lease to finalize the agreement.
Remember, a commercial real estate lease for industrial space is a binding legal agreement, so it’s important to take the time to understand the terms and conditions before you sign.