Sometimes it is what you do not know that can hurt you the most. This is true in any circumstance, but industrial leasing is only for the well informed. This business transaction is not as simple as renting for residential purposes. Regardless of the location of the business, some expenses may not be self evident. Boca Raton, FL, which has many properties built for manufacturing, will be used as the basis of 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.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Other costs also need to be known and identified clearly before committing to any contract. Property taxes, utilities and insurance represent added costs to the building owner. In some instances, the owner passes all or a portion of these costs onto the business leasing the property.
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.
Manufacturing in most cases includes the storage of some of the inventory and the goods used to manufacture the product. The threat of fire and water damage can destroy part or all of inventory and production goods. The manufacturer needs to have sufficient insurance to cover the costs of these losses. These destructive events may also damage the building itself. Insurance coverage is for your benefit and for the benefit of the property owner.
Nature affects geographic areas differently. The daily weather and the threat of extreme weather may impact decisions regarding location and insurance. Florida is subject to humidity, storms and in the worst case hurricanes. Verify that the building has been designed to withstand hazardous weather conditions. Building security is also important. Industrial areas may be prone to criminal activity, especially during the night time. Identify the responsible party and the costs of a paid security service to patrol the area.
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.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Other costs also need to be known and identified clearly before committing to any contract. Property taxes, utilities and insurance represent added costs to the building owner. In some instances, the owner passes all or a portion of these costs onto the business leasing the property.
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.
Manufacturing in most cases includes the storage of some of the inventory and the goods used to manufacture the product. The threat of fire and water damage can destroy part or all of inventory and production goods. The manufacturer needs to have sufficient insurance to cover the costs of these losses. These destructive events may also damage the building itself. Insurance coverage is for your benefit and for the benefit of the property owner.
Nature affects geographic areas differently. The daily weather and the threat of extreme weather may impact decisions regarding location and insurance. Florida is subject to humidity, storms and in the worst case hurricanes. Verify that the building has been designed to withstand hazardous weather conditions. Building security is also important. Industrial areas may be prone to criminal activity, especially during the night time. Identify the responsible party and the costs of a paid security service to patrol the area.
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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