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5 Mistakes to Avoid When Leasing a Warehouse


Negotiating a lease for your new warehouse space is a difficult process. The lease is the one which establishes your relationship with the landlords. The lease dictates the rules and regulations and also the measures to be taken in case something goes wrong.

Most tenants and landlords only talk about the normal aspects of the lease agreement such as the warehouse rent and concessions prior to signing the lease agreement. There are tiny details which are mostly overlooked and are the ones which can cause problems in case something happens.  Avoid these mistakes when looking for a warehouse for lease queens, and you will have a good business and relationship with your landlord.

  • Not paying attention to real estate taxes

When signing the leasing agreement, you should inquire about the amount of tax which you are supposed to pay. Also, make sure that you know what will happen in case the tax rate goes up. Otherwise, if you don’t know the landlord may decide to increase your tax which is not proportional to the tax hike.

  • Not checking the existing condition clause

An existing condition clause dictates that you should ensure you return the warehouse space to its former state in case you decide to move out. This includes demolishing new walls, removing flooring and repainting.

  • Signing a lease agreement

When you decide to sign a lease agreement instead of discussing about the lease puts your company entirely on the hands of the landlords. When you sign a standard lease agreement, this means that your business is the one which will bear all the financial burden in case space gets damaged. If you want to protect your business against such burdens, then you should take your time and negotiate with the landlord about the lease terms.

  • Negotiating alone

Never go into the negotiation process by yourself. Instead, opt to hire an experienced tenant representative broker. An experienced tenant rep broker will have several years of experience and will know how the current market works.

The broker will assist you in the negotiation process and help you to avoid signing a costly lease agreement. When you go to negotiate alone, you are likely to pay huge fees on the space in case of damages to the property.

  • Not doing enough research on the property

When looking for warehouse space, you want to make sure that everything is in order before signing the lease. You wouldn’t want to lease the space then find out that the electricity is faulty.

The safety inspector will not permit you to open or start operating until the problem is fixed. Make sure that you go and check the building for any pending problems or faulty systems before going ahead to sign the lease.

When looking for a warehouse space to lease you should stay disciplined and always stick to your plans. Being in a hurry or getting frustrated will only cause your business problems in the long run.

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