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.
Industrial leases are listed at the annual cost per square foot. For example, there are many buildings in Boca Raton listed at twelve dollars per square foot. If the building has ten thousand square feet, the annual cost would be one hundred twenty thousand dollars. Divide that by twelve to get your monthly cost of twelve thousand dollars. The size of the space to be leased will greatly impact the ultimate cost.
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.
The property management company will usually require a certificate as of proof of insurance from the lessee. A good property manager will also require proof of renewal each year. The terms of the lease will identify the amount of coverage needed. The amount of this cost should be identified before your business accepts the terms of the lease.
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.
In order to create and adhere to a realistic budget, a manufacturer needs to identify all the costs before committing to a lease. Take the time for careful review and research to accurately calculate the aggregate cost of leasing the property. An informed decision will help your business make the best decision.
Industrial leases are listed at the annual cost per square foot. For example, there are many buildings in Boca Raton listed at twelve dollars per square foot. If the building has ten thousand square feet, the annual cost would be one hundred twenty thousand dollars. Divide that by twelve to get your monthly cost of twelve thousand dollars. The size of the space to be leased will greatly impact the ultimate cost.
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.
The property management company will usually require a certificate as of proof of insurance from the lessee. A good property manager will also require proof of renewal each year. The terms of the lease will identify the amount of coverage needed. The amount of this cost should be identified before your business accepts the terms of the lease.
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.
In order to create and adhere to a realistic budget, a manufacturer needs to identify all the costs before committing to a lease. Take the time for careful review and research to accurately calculate the aggregate cost of leasing the property. An informed decision will help your business make the best decision.
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