If you are looking into industrial commercial leases, here are a few questions you might want to ask to understand what you are getting into:
- What is the base rent for the usable square footage? Many commercial leases spell out a base rent, which is the cost of the actual square footage of the office space. But your monthly rent could be increased by the addition of CAM fees and “loads.”
- Are the lease terms negotiable? Some examples of negotiable terms could include the base rent, security deposits, free rent, lease length, annual rate of increase in rent and fees, and how frequently you will have to pay fees.
- Are there added costs besides rent? If there are any property fees, special taxes, load fees, CAM or other fees, get them in writing. Be sure that your lease clearly identifies each fee, the amount of the fee, and how often you have to pay it.
- What will your costs be in the future? How much can rent or other fees be increased each year? What is the maximum amount or percentage these costs can be raised annually? Beware of low percentage caps on load fees with hidden rent increases.
- What does your rent cover? Make sure you know what taxes, services, and utilities are covered by your rent, versus what you have to pay yourself.
Be sure to ask yourself these questions as you look into industrial commercial spaces!