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.
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.
Clearly identify the party responsible for paying the property taxes, your business or the property owner. Property insurance and utilities are other cost factors that may increase your monthly expenses significantly. Potential lessees need to know if they will be responsible for these costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
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.
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.
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.
Clearly identify the party responsible for paying the property taxes, your business or the property owner. Property insurance and utilities are other cost factors that may increase your monthly expenses significantly. Potential lessees need to know if they will be responsible for these costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
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.
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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