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When a business leases an industrial property, it can be vulnerable to unknown costs. Every business person should become educated regarding the facts of industrial leasing. Boca Raton, FL, has many of these properties available and will make an excellent example for this discussion.
Buildings are typically listed at the cost per square foot, per year. It is up to the business consumer to calculate the monthly lease expense. For example, if a property is on the market for twenty dollars a square foot and it has twelve hundred square feet, the monthly lease cost will be twenty times twelve hundred divided by twelve, which is two thousand dollars per month. This community in Florida easily has leases on the market in this price range.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Review your lease carefully to determine the party responsible for paying utilities and property taxes. These expenses exist with any property. To fully understand the aggregate cost of leasing a property, you need to know if your business will be responsible for these added costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
Businesses that manufacture products are vulnerable to water or fire damage. These threats may cause damage to the building, but they may also destroy inventory and the goods used to manufacture the end product. This can be devastating to a manufacturer. The property owner may also suffer damages in the event of fire or flood. It is a safe and accepted business practice for the lessee to have adequate insurance coverage in place.
Every geographic area has its own unique set of issues for the lessee. Florida is humid and can be subject to severe storms or even hurricanes. The building should be solid and built to withstand these threats. Security is another concern. The building should have a working alarm system that detects fire and the threat of burglary. There may also be the cost of paying for a security patrol service. Manufacturing areas can be subject to criminal activity, especially after business hours. The terms of the lease should identify the party responsible for paying these costs.
As illustrated there are several sources of additional expenses, other than the monthly lease cost. Careful research and review of all contracts is necessary to identify all costs to determine if this property is within the budget. A business needs to take the time to uncover all these facts in order to make an informed decision.
Buildings are typically listed at the cost per square foot, per year. It is up to the business consumer to calculate the monthly lease expense. For example, if a property is on the market for twenty dollars a square foot and it has twelve hundred square feet, the monthly lease cost will be twenty times twelve hundred divided by twelve, which is two thousand dollars per month. This community in Florida easily has leases on the market in this price range.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Review your lease carefully to determine the party responsible for paying utilities and property taxes. These expenses exist with any property. To fully understand the aggregate cost of leasing a property, you need to know if your business will be responsible for these added costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
Businesses that manufacture products are vulnerable to water or fire damage. These threats may cause damage to the building, but they may also destroy inventory and the goods used to manufacture the end product. This can be devastating to a manufacturer. The property owner may also suffer damages in the event of fire or flood. It is a safe and accepted business practice for the lessee to have adequate insurance coverage in place.
Every geographic area has its own unique set of issues for the lessee. Florida is humid and can be subject to severe storms or even hurricanes. The building should be solid and built to withstand these threats. Security is another concern. The building should have a working alarm system that detects fire and the threat of burglary. There may also be the cost of paying for a security patrol service. Manufacturing areas can be subject to criminal activity, especially after business hours. The terms of the lease should identify the party responsible for paying these costs.
As illustrated there are several sources of additional expenses, other than the monthly lease cost. Careful research and review of all contracts is necessary to identify all costs to determine if this property is within the budget. A business needs to take the time to uncover all these facts in order to make an informed decision.
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