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.
The first thing to consider is the square footage cost. Residential properties are listed at the cost of the monthly rent. However, industrial property is typically listed at the annual cost per square feet. To determine the monthly cost multiply the price per square feet by the number of square feet and divide that number by twelve. With many properties available in the twelve dollar range, Boca Raton is a good market for industry.
In most instances an industrial lease involves an entire building. If your business is renting only a portion of the building, read the lease carefully to determine if the deal will include any common area costs that will be added to the base cost. Common areas may include items such as reception areas, hallways and bathrooms that are used by all of the building occupants.
Clearly identify the party responsible for paying the property taxes, your business or the property owner. Property insurance and utilities are other cost factors that may increase your monthly expenses significantly. Potential lessees need to know if they will be responsible for these costs.
Typically the lessee will be required to purchase insurance as a condition of the lease. The property manager will request proof of coverage that identifies the amount of coverage and policy period. The property manager may also require proof annually from the the lessee that the policy is active and has not lapsed.
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.
The cost of the lease and all the extraneous costs must be factored into the monthly expenses. Unseen costs can play havoc with your budget. It is up to the lessee to be fully informed regarding the extent of all expenses associated with leasing the building. Get all the facts to make an informed decision and ensure the future success of your manufacturing business.
The first thing to consider is the square footage cost. Residential properties are listed at the cost of the monthly rent. However, industrial property is typically listed at the annual cost per square feet. To determine the monthly cost multiply the price per square feet by the number of square feet and divide that number by twelve. With many properties available in the twelve dollar range, Boca Raton is a good market for industry.
In most instances an industrial lease involves an entire building. If your business is renting only a portion of the building, read the lease carefully to determine if the deal will include any common area costs that will be added to the base cost. Common areas may include items such as reception areas, hallways and bathrooms that are used by all of the building occupants.
Clearly identify the party responsible for paying the property taxes, your business or the property owner. Property insurance and utilities are other cost factors that may increase your monthly expenses significantly. Potential lessees need to know if they will be responsible for these costs.
Typically the lessee will be required to purchase insurance as a condition of the lease. The property manager will request proof of coverage that identifies the amount of coverage and policy period. The property manager may also require proof annually from the the lessee that the policy is active and has not lapsed.
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.
The cost of the lease and all the extraneous costs must be factored into the monthly expenses. Unseen costs can play havoc with your budget. It is up to the lessee to be fully informed regarding the extent of all expenses associated with leasing the building. Get all the facts to make an informed decision and ensure the future success of your manufacturing business.
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