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Commercial Industrial Spaces - Things to Consider When Leasing Industrial Spaces

Pros and Cons of Leasing Industrial Spaces


Filed in: Leasing Commercial Office, Retail and Industrial Spaces

Leasing Industrial Spaces

If you need large storage facilities, or a place to set up large-scale production, manufacturing, or a shipping depot, the cheapest type of space to rent is usually industrial space. But commercial industrial spaces can also be used in place of traditional commercial offices, usually at substantially cheaper prices per square foot.

Pros of Leasing Commercial Industrial Spaces

There are many advantages to leasing commercial industrial spaces. Some of the benefits include:
  • Affordable, Flexible Leases: Large industrial space are usually less expensive to rent than finished commercial office space or established retail spaces. And, since industrial spaces are often used for a variety of purposes, leasing agents can be flexible when negotiating the terms of industrial space leases.
  • Cheaper to Renovate Than to Purchase a Building: If you need custom-designed facilities, but cannot afford to purchase and renovate your own building, most industrial complexes allow tenants to build-out, modify, or substantially renovate warehouses into custom office, production, or even retail facilities.
  • Flexible Zoning Options: Because industrial parks tend to be very flexible in terms of zoning, it may be easier to convert industrial spaces into manufacturing and retail businesses than existing buildings in areas zoned for other specific business purposes.
  • Add Usable Square Feet Without Increasing Rent: Since most large industrial spaces have high ceilings, many can accommodate a mezzanine or be split into two internal stories. Depending on how much you spend to add this space, you can add to your usable square footage without increasing your monthly rent.

Cons of Leasing Commercial Industrial Spaces

While there are many advantages to leasing commercial industrial spaces, be sure to consider some of the disadvantages of leasing large industrial spaces:
  • Cost of Adding Electrical, Plumbing and HVAC Systems: If the space is completely unfinished, you may have to add your own plumbing, heating and cooling systems. If you are converting warehouse space into an office or retail space you will also have to upgrade lighting fixtures and add electrical wiring.
  • Downtime While Renovating: If you are converting unfinished industrial space, your business will not be fully operative and able to maximize use of the space until the build-out or renovation is completed.
  • CAM Fees: Many industrial parks add fees to your basic lease price. For example, "CAM fees," which stands for Common Area Maintenance fees may be added to a commercial lease. CAM fees require tenants to pay for a portion of the cost it takes to maintain the industrial park. Pay very close attention to CAM fees in any lease. If a landlord requires tenants to contribute to major renovations or repaving parking lots, etc. you can find yourself stuck with thousands of dollars in special CAM fees.
  • Appearance and Accessibility: Industrial parks are not always as "attractive" on the outside or may be set off main roads.


The most important thing when considering any leased space is to look at as many spaces as possible before making your decision. By including commercial industrial space on your list of leasing options, you may just find larger, more affordable space to grow your business!

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