- October 31, 2017
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Leasing industrial space can be a daunting endeavor, to say the least. With so many components to factor in, even the most experienced lessee can run into snags. Is there there a checklist where anyone would refer to as they peruse potential properties? We’ve compiled some of the most relevant elements that need to be considered.
It’s All About Space
When it comes to renting industrial space, usable area is going to determine not only the cost but also how well it will benefit your particular company. While the value of most commercial real estate is estimated by the usable square footage, industrial space takes it to the next level by acknowledging cubic footage (from the floor all the way up to the ceiling). Knowing how much space you will need to accommodate your business is the first step in acquiring the right property. How much machinery and equipment will your property need to be able to house? What is the floor load of the building? How large is your business and how many people do you employ? Do you plan on growing the company over the next few years? If so, how large do you expect it to get? Moving can become a costly business expense. Make sure that you plan ahead by answering all of these questions before you sign a lease.
Scrutinize the Property
Toured the inside of the property and found that it meets all of your business needs? It’s now time to head outside and survey the surrounding land. Is there room for trucks and machinery to maneuver around the outside of the building? If not, what sort of modifications will need to be made to remedy this? What will be the costs of maintaining the area outside of the building? Is there a loading dock where you can load and unload shipments and materials? If so, are the specifications appropriate for your industry? Is there available parking for your employees and if so, what is the proximity to the building itself? As you can see, when it comes to industrial space, the external landscape of the property is just as important to consider as the inside.
Evaluate Your Location
This is another important piece in finding the right industrial space for your business. First and foremost, make sure that the area you are considering is zoned for the type of industry you are offering. Zoning is the process of dividing land into different sectors that facilitate different uses. It is a common misconception that commercial and industrial zoning falls into the same category. This is simply because they are both non-residential, but this is not the case. While commercially zoned areas are typically reserved for businesses that might encounter more interaction with the public, industrial areas focus on businesses that are primarily involved in manufacturing, packaging, or shipping. Getting clear on this early can help you to avoid potentially costly fines later down the road.
When choosing your location, it is also important to think about the commute that this might involve for your employees if you are an already existing company. If you have a large employee population residing far from the potential leasing option, you might risk losing some of your employee base. Certain employees may not be willing to commute or may not have the means to travel that far. Being in close proximity to public transportation may help to persuade some, but not all. A great way to avoid this conflict is to conduct a poll of your existing employees prior to starting your search. Find out who is willing to commute and how far. This will get you a clearer picture of the risk you are running by moving your company farther away from its current location.
Lastly, focus on your bottom line. The location that you choose will impact the costs of shipping materials in and out. Crunch the numbers to figure out how this move will affect that number before making any rash decisions.
Looking for Industrial Space in the Baton Rouge Area?
With so many components to consider in leasing industrial space, it’s no wonder that most people will choose to have a professional to walk them through the process. A skilled advisor will help you to check off all of the boxes as you move through your search. At SVN | Graham, Langlois & Legendre our team of dedicated advisors has a huge database of properties we are excited to show you. We are confident that we can help you find the industrial space that best fits all of your needs. Search through our properties today and reach out to us to get started.