How to Lease Warehouse Space

by Business Editor; Updated September 26, 2017

How to Lease Warehouse Space. Choosing to lease warehouse space can be a good move, particularly for new businesses. Leasing warehouse space conserves capital and eliminates many management responsibilities. In addition, leasing allows a company flexibility for growth.

Learn How to Lease Warehouse Space

Step 1

Identify your needs. Walk through your operation step-by-step, listing the warehouse requirements at each juncture. You may need electricity and a certain number of outlets. You may need a water source. Ceiling space may be a concern. Your warehouse may also need to maintain a certain temperature.

Step 2

Consider whether this will be a working warehouse. Some warehouse space is used only for storage. If employees will be working in your warehouse at length, you will need restroom facilities, proper ventilation, parking spaces and a break room.

Step 3

Figure out how much space you will need. Very small, storage-only warehouses may have a set monthly rent like a residence. Most office space rents by the square foot. The basic formula is calculated by multiplying the number of square feet to be leased by the price per square foot. To determine the monthly rent divide this number by 12.

Step 4

Research locations. When looking at the building and its location, consider how often you receive shipments. Companies that receive constant deliveries may need to be near a freeway or even a seaport.

Step 5

Think about the kind of access you need to the building. Doorways should be large enough for deliveries. Certain businesses may require docks.

Step 6

Check out the landlord and the property management. Ask other tenants about the quality of the services provided. Make sure the buildings are up to safety code requirements.

Step 7

Recognize your responsibilities as a tenant. Do not assume that the landlord will do certain things. Don't agree to anything that is not spelled out in the lease.

Step 8

Understand your lease. Commercial lease terminology can become complicated quickly. For instance, a triple net lease makes you responsible not just for the rent but for all expenses associated with your warehouse space as well. Have your attorney read over the lease before signing it.

Step 9

Know your rights as a tenant. Most warehouse leases remain enforceable even if ownership of the building changes. Make sure the lease addresses your inability to use your warehouse space due to a problem caused by the landlord.

Step 10

Insure your equipment. The landlord's insurance will not cover losses to your inventory. You should also purchase liability insurance in case one of your employees or a visitor is injured. Both you and the landlord can be held liable for events taking place inside the warehouse, sidewalks or parking areas.

Warnings

  • Even spaces advertised as warehouses may not be legally usable for certain warehouse functions. Before signing a lease, check with the city regarding how the space is zoned and determine if there are restrictions even within warehouse zones. Noise restrictions and restrictions on hours of operation are examples of regulations which could prove burdensome for some warehouse facilities.