Office, Warehouse and Industrial Space Tips
- Add-On Factor: Buildings vary on their load factor, the square feet added to your space for the common areas. We can explain the “load factor,” “loss factor,” “New York stretch,” “common area factor” in detail and compare buildings for the best efficiency. For industrial space or warehouse space, be aware of “dripline”—a way for landlords to charge for unenclosed space.
- Negotiate Terms: In addition to the rent, many items in a lease can be negotiated - such as when operating expenses are passed through, tenant improvements, covered parking, expansion options, renewal terms, first right of refusal, signage and after hours air conditioning costs. For industrial or warehouse space, who pays if the HVAC unit fails? We will review the areas of a lease that are important to you.
- Building Hours of Operation: When does the building open and close to the public? What are the standard hours of operation for the air conditioning and heating? How are the leased premises accessed after hours? The answers to these questions can have a significant impact on your business operations—and budget!
- Effective Rental Rate: Landlords can structure their rent in a variety of ways such as triple net (NNN), base year, modified industrial, plus electricity and janitorial and gross lease. We will explain the rent structure of properties being considered and provide an analysis so all properties are compared on an economic equal footing.
- Floor Plans: An efficient floor plan works better for a tenant, saves space and therefore saves rent money. We help review existing floor plans or “to be built” floor plans to see if any remodeling or changes would be beneficial.
- Types of Properties: Central business district high rises, garden offices, corporate campuses, flex buildings, mixed-use properties and suburban buildings are some of the options available. We can explain the benefits of each and help determine the most suitable option.
- Location: Consider not just an area of town but also the travel time to company members' homes, restaurants, the airport, hotels and key customers. We can show you alternate roads to cut down the travel time. Should there be a price difference between various areas of town, we will bring them to your attention.