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.
Buildings are typically listed at the cost per square foot, per year. It is up to the business consumer to calculate the monthly lease expense. For example, if a property is on the market for twenty dollars a square foot and it has twelve hundred square feet, the monthly lease cost will be twenty times twelve hundred divided by twelve, which is two thousand dollars per month. This community in Florida easily has leases on the market in this price range.
A service business usually leases one office or a suite of offices. A business that manufactures goods often leases the entire building. However, the potential costs of common areas must still be considered. Buildings located in an industrial park may have to share common maintenance costs, such as landscaping maintenance or keeping the parking lot well lit. Take the time to identify any common area costs that may exist.
Review your lease carefully to determine the party responsible for paying utilities and property taxes. These expenses exist with any property. To fully understand the aggregate cost of leasing a property, you need to know if your business will be responsible for these added costs.
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.
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.
As illustrated there are several sources of additional expenses, other than the monthly lease cost. Careful research and review of all contracts is necessary to identify all costs to determine if this property is within the budget. A business needs to take the time to uncover all these facts in order to make an informed decision.
Buildings are typically listed at the cost per square foot, per year. It is up to the business consumer to calculate the monthly lease expense. For example, if a property is on the market for twenty dollars a square foot and it has twelve hundred square feet, the monthly lease cost will be twenty times twelve hundred divided by twelve, which is two thousand dollars per month. This community in Florida easily has leases on the market in this price range.
A service business usually leases one office or a suite of offices. A business that manufactures goods often leases the entire building. However, the potential costs of common areas must still be considered. Buildings located in an industrial park may have to share common maintenance costs, such as landscaping maintenance or keeping the parking lot well lit. Take the time to identify any common area costs that may exist.
Review your lease carefully to determine the party responsible for paying utilities and property taxes. These expenses exist with any property. To fully understand the aggregate cost of leasing a property, you need to know if your business will be responsible for these added costs.
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.
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.
As illustrated there are several sources of additional expenses, other than the monthly lease cost. Careful research and review of all contracts is necessary to identify all costs to determine if this property is within the budget. A business needs to take the time to uncover all these facts in order to make an informed decision.
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