When looking for a warehouse on rent, it’s important to not only consider the location and amenities, but also the terms of the lease. Negotiating certain aspects of the lease can save your business money and provide added flexibility in the long run. In this article, we will discuss the top 5 things to negotiate when renting a warehouse.
- Rent
The most obvious thing to negotiate when renting a warehouse is the rent. It’s important to research the going market rate for warehouse rental in the area and use that as a basis for negotiation. Don’t be afraid to ask for a lower rent, especially if the warehouse has been vacant for a while or if you plan on leasing for a long term.
- Lease Length
The length of the lease can also be a point of negotiation. Many landlords prefer longer leases as it provides them with a steady stream of income, but a shorter lease may be more beneficial for your business in case your needs change. Negotiate for a lease length that works for both parties.
- Maintenance and Repairs
Another important aspect to negotiate is who is responsible for maintenance and repairs. Some landlords may include this in the rent, while others may require the tenant to cover these costs. Clearly defining who is responsible for what can save your business money in the long run.
- Subleasing
If your business plans on subleasing a portion of the warehouse, it’s important to negotiate this in the lease. Landlords may have restrictions on subleasing or may require additional fees. Clarifying these terms in the lease can prevent any confusion or issues in the future.
- Option to Renew
The option to renew the lease is another important aspect to negotiate. Having the option to renew the lease provides added security for your business in case you wish to continue using the warehouse in the future. Make sure to include the terms of the renewal in the original lease to avoid any confusion.
Conclusion:
When renting a warehouse, it’s important to not only consider the location and amenities, but also the terms of the lease. Negotiating the rent, lease length, maintenance and repairs, subleasing, and option to renew can save your business money and provide added flexibility in the long run. It’s crucial to take the time to carefully review and understand the lease agreement before signing.
Impact on Business:
Choosing the right warehouse and negotiating favorable terms can have a significant impact on your business. It can save your business money and provide added flexibility in the long run. A favorable lease agreement can also provide your business with the security and stability it needs to grow and expand. On the other hand, a bad lease agreement can lead to unexpected costs and limitations that can hinder your business operations and growth. It is important to take the time to carefully review and understand the lease agreement before signing. It is also crucial to work with a professional commercial real estate agent or lawyer to ensure that all your needs and interests are protected.