Commercial warehouse space lease advice

sdlewissdlewis subscriber Posts: 3
edited October 2016 in Grab Bag
I am starting to seek out commercial warehouse space to lease.What advice do fellow entrepreneurs have to offer?

Comments

  • sdlewissdlewis subscriber Posts: 3
    Thank you for your reply Raisecapital02 and tikki50. tikki50 - Thank you. I am adding your suggestions to my list.Raisecapital02 - Well the size so far is looking to be around 7K sq ft. I would like a larger one but I am trying as hard as I can to keep start-up costs low due to not having any money at this point.We will need to move product in and out of the location. My business with be receiving surplus IT equipment from clients who have hired us to either recover as much capital from the equipment via remarketing or proper disposal via recycling and selling components on the secondary market. I am interested if fellow SuN members have any suggestions to be aware of.  Any experiences that if done over again you would do differently. I am reading as much as I can on the subject of commercial leasing and will eventually move forward but am doing what I can to be informed.Thanks again.
  • sdlewissdlewis subscriber Posts: 3
    Thanks nevadascul!I will use your advice.
  • jgeorgie33jgeorgie33 subscriber Posts: 0
    I`d like to hear some more info on this topic, too. I want to rent a studio space to have more of a place to work out of.I`m thinking I`d want about 700-1000 sqft and I have about $1000-$2000 a month to spend. Is that even feasible? If I`m not running a business, will I still need to pay for insurance and CAM? Are there any other fees which I don`t know about?Thanks!
    jgeorgie332007-7-18 14:41:38
  • nevadasculnevadascul subscriber Posts: 3 Member
    Hi jgeorgie,
     
    First, what do you need the space for?  Are you just processing transactions or shipping product?  Have you considered sharing an office with someone?  Many businesses in the Vegas area lease an office space in an existing business.  All the tenants in this arrangement pay for the receptionist and upkeep of the common areas in the office.  They also have free use of the conference rooms and meeting rooms within the main office area.  This is a much cheaper and faster way to setup an office.  
  • RebeckaRebecka subscriber Posts: 0
    When leasing any office or warehouse space, a couple of things to pay attention to are repair & maintenance items and CAM (Common Area Maintenance) and Operating expenses.
    For industrial/warehouse space you usually you pay a lower rental rate but you are responsible for ALL repair and maintenance items including HVAC equipment. The landlord is typically only responsible for exterior and foundation repairs (roof, exterior walls, roof, parking lot, hidden plumbing). The landlord will bill you for a proportionate share of CAM expenses. In addition to rent and CAM you are responsible for property taxes, insurance, and utilities.
    The thing to watch out for here is that the property is in good condition to start with, you don`t want the Landlord passing off needed repairs to you.

    Office space`s are usually full-service leases, where you pay a higher rental rate and the landlord is responsible for most repair & maintenance items including janitorial service. In addition, you may pay a proportionate share of Operating Expenses, Taxes, and Insurance over a pre-determined Base Year amount. They may also bill you for Excess utility usage (if you have a lot of equipment) and overtime HVAC (use after regular building hours).
     
     
  • sdlewissdlewis subscriber Posts: 3
    Thanks Rebecka!This is all very useful and I appreciate your advice.
  • ShipwireShipwire subscriber Posts: 0
    If your renting a warehouse to do order fulfillment out of...definately look to a 3PL.  http://www.shipwire.com is one, there are others.Warehouse costs checklist (who owns these in the agreement)--lease, lease term and discounts for longer term--common area control (like homeowner)--Security, security systems--software and infrastucture--check to make sure the area is safe and secure (don`t want break-ins).--insurance for the building verse the inventory--Employees other than your warehouse workers (security, maintainence, etc)Sometimes its hard to rent warehouse space if your a new company as they want to run credit checks on you and get personal guarantees.  Again...a good reason to look at a place like shipwireBest of luck sd!SW
  • Ziyapathan0143Ziyapathan0143 subscriber Posts: 150 Silver Level Member
    To start with, what do you require the space for? Is it true that you are simply preparing exchanges or dispatching item? Have you considered offering an office to somebody? Numerous organizations in the Vegas region rent an office space in a current business. Every one of the occupants in this game plan pay for the assistant and upkeep of the regular regions in the workplace. They additionally have free utilization of the gathering rooms and meeting rooms inside the fundamental office region. This is a much less expensive and quicker approach to setup an office.
  • anushkachhakrabartianushkachhakrabarti subscriber Posts: 219 Silver Level Member
    The first lease many entrepreneurs sign is usually short-term because who knows if the business is even going to work. But say it does and now it’s starting to grow you need a new spot either for better location, better facility or larger space. The second lease you sign is often pivotal in the survival of your business. The terms of your lease can act like a slow leak in your tires or can leave the door open to incur huge expenses when the unexpected happens. Leases are legal contracts and should be examined closely and, more importantly, understood completely before you even consider signing one.
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