Does Leasing Industrial Space Make Sense for Your Business?
Commercial industrial spaces can offer many options that traditional office spaces cannot. But industrial spaces can also have certain limitations that traditional business and retail parks do not have. Be sure to ask questions about any restrictions that could be placed on your business in an industrial park before your sign a lease.Questions you should ask about the property that you may wish to have addressed in your lease, include:
- Contractor and Service Limitations: Does the industrial park require you to use specific vendors or contractors for signs, lighting, renovations, build-outs, or any other services such as alarm, telephone, cable, etc?
- Advertising and Appearance Limitations: Are there any restrictions that could affect your business such as all signs must be in black and white, no larger than 2 feet, or exactly 5 feet from the ground? (All these things would make it hard to distinguish your business from others, or to be seen from a distance.)
- Is the unit cable and telephone ready? If not, is it in an area where you can get these services and who are local providers?
- Utilities: What public and private utilities can you use or access from your unit? Will you set up your own utility accounts? Some landlords may pay your utilities and then bill you for them. Will the landlord be required to provide proof of what you really owe if you do not get billed directly from utility companies?
- Parking and Traffic Limitations: Are there any limitations on the number of parking spaces you and your customers can use? If not, then there are likely no restrictions on other tenants as well. Do or can you have assigned parking?
- Business Hours: Will there be restrictions on business hours or days of the week where you can operate your business or receive clients and customers?
- Nature of Business Protection and Restrictions: Will there be any restrictions on the nature of business you operate? For example, if you are planning to open an antique shop, are there any restrictions on what you can sell, or, if you sell an item, will the landlord allow other similar, competing businesses to open while you are a tenant?
An example of why this is so important to ask, and to get it in writing is if an existing tenant has a doll shop with protection to retail privileges in the lease, an antique shop may be prohibited from selling antique dolls because selling dolls would compete with an existing tenant’s business. You want to make sure that your business has similar protections within the industrial complex.
Questions to Ask About Industrial Space Lease Terms, Rent and Other Fees
Questions to Ask About Build-Outs and Renovations of Industrial Spaces
