What determines the cost of a warehouse space for rent?

What determines the cost of a warehouse space for rent?
01 Mar, 2023

Warehouses come in a wide range of sizes and shapes, and prices of warehouse space for rent vary greatly based on the amount of space you require and the services you wish to use.

The issue is that before you sign on the dotted line, it's not always simple to figure out how much a warehouse would cost you each month to rent.

This guide outlines what to anticipate in terms of warehouse space rental expenses.

The quantity of space you require (in square feet), the base rental rate (per month or per year), and the expected operating expenditures (sometimes referred to as NNN or CAM; more on that below) are the three main factors that are commonly used to determine how much your warehouse will cost each month. Remember that you will also be expected to pay for your use of the water and electricity.

With a triple net lease (NNN), the tenant is liable for all costs associated with maintaining the real estate. Nevertheless, costs incurred as a result of running the business on the property are not the landlord's responsibility.

Typically, billing occurs once a month or once a year.

To obtain an accurate estimate of the monthly rent while comparing warehouse buildings, it's crucial to ask the landlord or broker the necessary questions. Be careful to inquire about:

Who is in charge of carrying out and funding maintenance?

Who is in charge of making repairs and paying for them?

Who is in charge of replacing machinery that is connected to the warehouse, such as the HVAC system?

Would I have to pay for the actual square footage of the space or for the shared area as well?

Am I required to put up signs?

Is the landlord willing to cover any upgrades made by the tenant?

You should find out the answers to these questions before signing the contract since you don't want to be surprised by the cost afterward. Your budget might be abruptly changed if something goes wrong that you are responsible for fixing or replacing.

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