Addressing Build-Outs and Renovations of Industrial Spaces in Leases
Leases can be complicated, and if you are planning to take a space "as is" and make changes to it, be sure to address your planned changes plans in the lease. Questions to ask about renovations and building out spaces include:
- Can you build out or renovated the existing space? If not, find another space. You may not need to build out space now, but never limit your business' future growth potential and unforeseen needs.
- Zoning Ordinances: Are there any zoning ordinances that would affect how you can build out the space?
- Conflict of Interest Concerns: Are you required to use the landlord's contractors? If so, consider this a strong negative.
- Approvals Needed: What special permissions or approval do you need to get in advance from the city, county, or landlord?
- Improvement Incentives: Will the landlord offer any rent reduction, rent credits, or other financial incentives to contribute to the cost of renovations and build-outs?
- Avoid "Value Increases" in Rent: If you increase the value of the space by building out or renovating, will this allow the landlord to increase your rent proportionally?
- Time Limitations: Will there be any time-frames required by your landlord, city, or county to complete warehouse renovations and build-outs?
- Permits Required: What special permits will you need to renovate or build-out your space, and will your landlord help you obtain these permits?
Questions to Ask About Industrial Space Lease Terms, Rent and Other Fees
Questions to Ask About Business Use Restrictions When Leasing Industrial Space