9 Things to Think About Before Leasing a Warehouse
9 Things to Think About Before Leasing a Warehouse
Aug 03, 2022
Although operating a warehouse differs from operating a standard warehouse and office for rent Dubai, there is some overlap. Simple amenities such as men’s and women’s restrooms, break areas, employee parking, and access to public transportation are all important considerations. https://www.dubaisouth.ae/en/logistics/solutions-and-properties
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9 Things to Think About Before Leasing a Warehouse
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9 Things to Think About Before Leasing a Warehouse
If you are a business owner looking to rent warehouse space, you must understand that not all warehouse spaces are created equal. Preliminary research will save you time, money, and disappointment if you choose a warehouse space that does not work for you and your company.
Warehouse and industrial space can be used for a variety of purposes, such as storage, manufacturing, and distribution. Each Industrial property you consider will have its own set of specifications and responsibilities, so make sure you understand the facility’s intended use and ask pertinent questions to the landlord and listing agent to ensure space meets your needs.
2
1. Examine Your Storage Consumpt ion. Some landlords use a specific method for calculating square footage. Check to see if they are calculating and what they are including. Ideally, you should only pay for the available square feet, which is the actual room you occupy. Some landlords will try to include the area beneath the drip lines of the building, while others will measure from the outside of the warehouse.
In addition to considering available square footage in a factory, you should also consider cubic square footage. The ceiling height comes into play here. Make sure you have enough vertical space if you need to stack items, boxes, or pallets. There’s no reason to pay to rent space with a high ceiling if you don’t need stacking space.
3
2. Planning and Zoning
To ensure urban growth and development, land in a municipality is divided into zones. Zones specify which types of businesses and properties are permitted. They can be commercial, industrial, or residential in nature.
It is critical to consider the location of your prospective property as well as its assigned zone. Industrial lease rates can be lower, but if the warehouse space is to be used for retail, the landlord must be able to apply for zoning changes.
4
3. Parking Area
Some landlords try to charge tenants for parking lot maintenance (asphalt or concrete). Employee parking, deliveries and pickups, overnight parking, and regular use are all possible uses for a parking lot. Repairs to the parking lot should be the landlord’s responsibility because they are a long-term expense and part of determining potential property value.
The parking lot must be sufficiently large to accommodate your company. If your business relies on tractor-trailer deliveries, your parking lot must be large enough to accommodate these vehicles. If necessary, confirm that trucks and other vehicles are permitted to park in the lot overnight.
5
4. Heat ing, Vent ilat ion, and Air Condit ioning (HVAC) The majority of warehouses do not have full-building HVAC. Each tenant is responsible for installing their own HVAC unit if they choose to have it. In many cases, you will be leasing a space that was previously leased by someone else, and they will have installed and used an HVAC unit. Because you don’t know if the previous tenant maintained the unit properly, try to avoid taking on the responsibility of a potentially neglected unit.
Negotiate with the landlord to pay for an HVAC maintenance contract in order to keep the existing HVAC unit in good working order. However, if the unit requires extensive repairs or replacement, the landlord should be held accountable. Before signing the contract, always demand that the landlord have the HVAC units inspected, repaired (if necessary), and certified in writing by a certified HVAC technician that they are in good working order. 6
5. Operat ing Cost s
The operating costs and whether they will be included in the lease are critical components of regular warehousing operations. Consider what your contract covers and what it does not cover, such as roof repairs, taxes, insurance, and maintenance. As the tenant, you may be liable for some or all of these expenses. You can inquire about day-to-day maintenance costs, such as who will be in charge of the lawn and garbage collection. Your primary goal should be to identify potential warehouses that can handle your volume while keeping the products secure in the interim. Price should not be the first priority, but it will be eventually. When you’ve narrowed your options down to a couple or three, compare prices for the services you require.
7
6. Elect r ical Power
Make sure to inquire about the building’s power supply with the landlord to ensure that it meets your electrical requirements. Before leasing out the warehouse, make sure it has enough electrical outlets. If you plan to use heavy electric vehicles inside the factory, ensure that there is enough power for charging and day-to-day operations. It is recommended that you hire an electrical engineer or electrician to inspect and evaluate any warehouse property for lease. They would know if the building has enough amperage and power to prevent extreme events like a transformer blowing up.
8
7. Loading Docks
Make sure to inquire about the building’s power supply with the landlord to ensure that it meets your electrical requirements. Before leasing out the warehouse, make sure it has enough electrical outlets. If you plan to use heavy electric vehicles inside the factory, ensure that there is enough power for charging and day-to-day operations. It is recommended that you hire an electrical engineer or electrician to inspect and evaluate any warehouse property for lease. They would know if the building has enough amperage and power to prevent extreme events like a transformer blowing up.
9
Open- The truck is parked in front of an exposed open dock area. They are also more difficult to manage in bad weather.
Depressed- These docks have an inclined driveway, which necessitates extra caution on the part of the driver in order to avoid damaging the house.
Flush- These seem to be the most popular docks, with the loading dock opening flush with the structure. Ensure that there is a dock bumper outside to protect the building from damage during docking.
Enclosed- A shell protects these docks from the elements. These typically require ventilation to prevent dangerous levels of automotive fumes from accumulating.
Sawtooth pattern- In buildings with limited road space, trucks may be required to park at a 45-degree angle to the dock, resulting in a sawtooth pattern. This usually necessitates additional warehouse space but has the added benefit of aligning the trucks for easy exit.
10
8. Place(Locat ion)
Keep your location in mind when deciding where to lease warehouse space. Before signing a warehouse contract, conduct a thorough investigation of the surrounding area. Is the warehouse easily accessible from major highways? Are there any restaurants or service businesses nearby that your employees could visit? Is it legal for your company to operate a warehouse in the area? You should also consider how your employees will get to the new location, whether by public transportation or accessible parking. Understanding the existing commercial real estate market dynamics in the area will help you determine whether proposed rents are reasonable.
11
9. Safety
This may be the most important factor to consider when renting warehouse space. If you’re storing a lot of valuable items in the warehouse, make sure they’re secure. You will lose a lot of money if your warehouse is broken into and your goods are stolen. Is the area around the warehouse fenced in, and do you need a code to enter? This is an important first step in security because a fence would deter many thieves from attempting to enter the warehouse. You can also consult with your landlord about installing electrical fencing for your warehouse if necessary. Is there any oversight? Guard patrols on a daily basis will also be a significant deterrent to criminals.
12
Conclusion — Plan ahead of t ime before leasing a warehouse space. Although operating a warehouse differs from operating a standard warehouse and office for rent Dubai, there is some overlap. Simple amenities such as men’s and women’s restrooms, break areas, employee parking, and access to public transportation are all important considerations. You should also look into the availability of high-speed internet at that location, in case your warehouse management software (WMS) or inventory management system (such as Digital Warehouse) requires it. Then there are warehouse-specific factors to consider, such as the space’s ability to handle a wide range of goods and your business type. If your company manufactures perishable goods that require refrigeration or generates hazardous waste, you can raise these concerns before signing the lease contract. You’ll need a plan in place for safely storing and disposing of any raw materials or byproducts.
Internat ional : +971-800-76884
Slide Number 2
2. Planning and Zoning
5. Operating Costs
6. Electrical Power
7. Loading Docks
Slide Number 10
Conclusion — Plan ahead of time before leasing a warehouse space.
Contact Us
If you are a business owner looking to rent warehouse space, you must understand that not all warehouse spaces are created equal. Preliminary research will save you time, money, and disappointment if you choose a warehouse space that does not work for you and your company.
Warehouse and industrial space can be used for a variety of purposes, such as storage, manufacturing, and distribution. Each Industrial property you consider will have its own set of specifications and responsibilities, so make sure you understand the facility’s intended use and ask pertinent questions to the landlord and listing agent to ensure space meets your needs.
2
1. Examine Your Storage Consumpt ion. Some landlords use a specific method for calculating square footage. Check to see if they are calculating and what they are including. Ideally, you should only pay for the available square feet, which is the actual room you occupy. Some landlords will try to include the area beneath the drip lines of the building, while others will measure from the outside of the warehouse.
In addition to considering available square footage in a factory, you should also consider cubic square footage. The ceiling height comes into play here. Make sure you have enough vertical space if you need to stack items, boxes, or pallets. There’s no reason to pay to rent space with a high ceiling if you don’t need stacking space.
3
2. Planning and Zoning
To ensure urban growth and development, land in a municipality is divided into zones. Zones specify which types of businesses and properties are permitted. They can be commercial, industrial, or residential in nature.
It is critical to consider the location of your prospective property as well as its assigned zone. Industrial lease rates can be lower, but if the warehouse space is to be used for retail, the landlord must be able to apply for zoning changes.
4
3. Parking Area
Some landlords try to charge tenants for parking lot maintenance (asphalt or concrete). Employee parking, deliveries and pickups, overnight parking, and regular use are all possible uses for a parking lot. Repairs to the parking lot should be the landlord’s responsibility because they are a long-term expense and part of determining potential property value.
The parking lot must be sufficiently large to accommodate your company. If your business relies on tractor-trailer deliveries, your parking lot must be large enough to accommodate these vehicles. If necessary, confirm that trucks and other vehicles are permitted to park in the lot overnight.
5
4. Heat ing, Vent ilat ion, and Air Condit ioning (HVAC) The majority of warehouses do not have full-building HVAC. Each tenant is responsible for installing their own HVAC unit if they choose to have it. In many cases, you will be leasing a space that was previously leased by someone else, and they will have installed and used an HVAC unit. Because you don’t know if the previous tenant maintained the unit properly, try to avoid taking on the responsibility of a potentially neglected unit.
Negotiate with the landlord to pay for an HVAC maintenance contract in order to keep the existing HVAC unit in good working order. However, if the unit requires extensive repairs or replacement, the landlord should be held accountable. Before signing the contract, always demand that the landlord have the HVAC units inspected, repaired (if necessary), and certified in writing by a certified HVAC technician that they are in good working order. 6
5. Operat ing Cost s
The operating costs and whether they will be included in the lease are critical components of regular warehousing operations. Consider what your contract covers and what it does not cover, such as roof repairs, taxes, insurance, and maintenance. As the tenant, you may be liable for some or all of these expenses. You can inquire about day-to-day maintenance costs, such as who will be in charge of the lawn and garbage collection. Your primary goal should be to identify potential warehouses that can handle your volume while keeping the products secure in the interim. Price should not be the first priority, but it will be eventually. When you’ve narrowed your options down to a couple or three, compare prices for the services you require.
7
6. Elect r ical Power
Make sure to inquire about the building’s power supply with the landlord to ensure that it meets your electrical requirements. Before leasing out the warehouse, make sure it has enough electrical outlets. If you plan to use heavy electric vehicles inside the factory, ensure that there is enough power for charging and day-to-day operations. It is recommended that you hire an electrical engineer or electrician to inspect and evaluate any warehouse property for lease. They would know if the building has enough amperage and power to prevent extreme events like a transformer blowing up.
8
7. Loading Docks
Make sure to inquire about the building’s power supply with the landlord to ensure that it meets your electrical requirements. Before leasing out the warehouse, make sure it has enough electrical outlets. If you plan to use heavy electric vehicles inside the factory, ensure that there is enough power for charging and day-to-day operations. It is recommended that you hire an electrical engineer or electrician to inspect and evaluate any warehouse property for lease. They would know if the building has enough amperage and power to prevent extreme events like a transformer blowing up.
9
Open- The truck is parked in front of an exposed open dock area. They are also more difficult to manage in bad weather.
Depressed- These docks have an inclined driveway, which necessitates extra caution on the part of the driver in order to avoid damaging the house.
Flush- These seem to be the most popular docks, with the loading dock opening flush with the structure. Ensure that there is a dock bumper outside to protect the building from damage during docking.
Enclosed- A shell protects these docks from the elements. These typically require ventilation to prevent dangerous levels of automotive fumes from accumulating.
Sawtooth pattern- In buildings with limited road space, trucks may be required to park at a 45-degree angle to the dock, resulting in a sawtooth pattern. This usually necessitates additional warehouse space but has the added benefit of aligning the trucks for easy exit.
10
8. Place(Locat ion)
Keep your location in mind when deciding where to lease warehouse space. Before signing a warehouse contract, conduct a thorough investigation of the surrounding area. Is the warehouse easily accessible from major highways? Are there any restaurants or service businesses nearby that your employees could visit? Is it legal for your company to operate a warehouse in the area? You should also consider how your employees will get to the new location, whether by public transportation or accessible parking. Understanding the existing commercial real estate market dynamics in the area will help you determine whether proposed rents are reasonable.
11
9. Safety
This may be the most important factor to consider when renting warehouse space. If you’re storing a lot of valuable items in the warehouse, make sure they’re secure. You will lose a lot of money if your warehouse is broken into and your goods are stolen. Is the area around the warehouse fenced in, and do you need a code to enter? This is an important first step in security because a fence would deter many thieves from attempting to enter the warehouse. You can also consult with your landlord about installing electrical fencing for your warehouse if necessary. Is there any oversight? Guard patrols on a daily basis will also be a significant deterrent to criminals.
12
Conclusion — Plan ahead of t ime before leasing a warehouse space. Although operating a warehouse differs from operating a standard warehouse and office for rent Dubai, there is some overlap. Simple amenities such as men’s and women’s restrooms, break areas, employee parking, and access to public transportation are all important considerations. You should also look into the availability of high-speed internet at that location, in case your warehouse management software (WMS) or inventory management system (such as Digital Warehouse) requires it. Then there are warehouse-specific factors to consider, such as the space’s ability to handle a wide range of goods and your business type. If your company manufactures perishable goods that require refrigeration or generates hazardous waste, you can raise these concerns before signing the lease contract. You’ll need a plan in place for safely storing and disposing of any raw materials or byproducts.
Internat ional : +971-800-76884
Slide Number 2
2. Planning and Zoning
5. Operating Costs
6. Electrical Power
7. Loading Docks
Slide Number 10
Conclusion — Plan ahead of time before leasing a warehouse space.
Contact Us
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