When you are in search of industrial space for lease purpose, there are some basic concerns that you need to look into before finalizing. The term Commercial real estate sounds confusing to many. To begin with, let me explain you what exactly the term signifies- a land based property that generates revenue but not an investment property. Traditionally, rent is often one of the major deciding factors. Commercial real estate lease can count added charges if not verified properly. I will guide you with some important questions to find the facts before going ahead with industrial space for lease or warehouse space.
Base rent on usable footage:
Ask about the rent based on square foot. Most of the time that is what referred as actual monthly rent. At times, charges for “loads or “CAM” are added, thereby increasing the monthly rent. This is applicable to warehouse space as well.
Find out if the leasing terms are negotiable:
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Do you know the parts of leasing that are negotiable? Before going ahead with industrial space for lease negotiate the base rent, security deposits, free rent, time length of the lease, how much will your rent and fees for industrial space for lease will tend to increase each year and how can you renew the lease etc.
Surplus charges:
Check, if you are eligible for any additional taxes, property fees, load fees, CAM fees etc. do not go by words, get everything documented. Get the details of each fee separately with the amount and time of payment (when to pay and how to pay).
Rent and fees increment:
How will your rent increase? What are the factors influence your increment? How often or rather when can you expect your rent or other fees to increase? To what extent will your fees and rent increase at one go? Get every detail to decide whether this particular industrial space for lease is a feasible option.
Parts of rent:
Find out if the cost of utilities service, security facilities etc are included in the rent. Also, identify the taxes and the type of taxes.
What is CAM Fees?
When you are going for warehouse space or industrial space for lease, you are probably charged square foot wise but your actual rent includes several other charges. In case of retail space and industrial space for lease, the surplus charges are refereed to Common Area Maintenance (CAM) fee.
What is Load Fees?
Another term used in commercial real estate field is Load fees, especially heard while leasing a non-industrial space. This is the term used for additional charges apart from the base rent. At times, the rent is inclusive of this extra expense and some times, it is separately charged.
These terms are not relevant in case of industrial space for sale. There are various factors that need to be looked into before finally selling it. The commercial real estate has different segments along with separate specific terms and rules. Therefore, no matter if you are looking for industrial space for sale or industrial space for lease, go through the terms to be on the safer side.
Samantha was involved in stock market transactions and takes interest in commercial real estate markets. She has researched on industrial space for lease requirements and found out some basic information needed before final decision. Go through his other real estate articles to know more.
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