Industrial Property Leases 101

When you’re looking to lease an industrial property, you’re dealing with a process entirely different from that which is used to lease, rent, or purchase a property for residential, retail, or office space purposes. Industrial properties tend to have a lot going on in them, including the use of expensive machinery and individuals performing risky tasks. This means that industrial leases are subject to many restrictions and regulations of which you must be aware.

The Space Must Suit Your Needs

When looking for a space to lease for your industrial needs, the first thing you need to consider is the size of the space. Ideally, you’ll want a space that can accommodate your present needs as well as your future growth. That said, don’t go overboard and lease a place much larger than you truly need, or you’ll be paying higher fees for no purpose. Remember that successful companies like Google often get started in garages, so be conservative.

You’ll also need to be sure that the site can accommodate your specific needs. The property needs to have access to sufficient electricity, water, phone service, data service, gas, and more, in order to carry out your operations. Know how you’ll take deliver and ensure that there’s space for the trucks. Know where your employees will park and that there will be room for all of them. Leasing an industrial property unsuited for your particular needs will do you no good, no matter how premium the property.

Visiting the Site and Drafting a Plan

Once you’ve identified a likely site, the next step is to physically visit the site and draft a business plan that includes a tentative layout for how your industrial operation will be structured within the space. Include estimations of where foot traffic will go, how truck traffic will be directed, and so on.

Negotiate with the Help of an Attorney

Industrial leases are unusually complex and lengthy. There’s a temptation to want to go ahead and sign them and get down to business, but this temptation must be resisted. Before you sign any lease, consult a qualified attorney with experience in the area of handling industrial leases. He or she will be able to help you negotiate for the most favorable terms each step of the way, thus enabling you to get the absolute most out of your industrial space.