djamal-soft
الخميس، 19 نوفمبر 2015
Sometimes it is what you do not know that can hurt you the most. This is true in any circumstance, but industrial leasing is only for the well informed. This business transaction is not as simple as renting for residential purposes. Regardless of the location of the business, some expenses may not be self evident. Boca Raton, FL, which has many properties built for manufacturing, will be used as the basis of this discussion.
Buildings are typically listed at the cost per square foot, per year. It is up to the business consumer to calculate the monthly lease expense. For example, if a property is on the market for twenty dollars a square foot and it has twelve hundred square feet, the monthly lease cost will be twenty times twelve hundred divided by twelve, which is two thousand dollars per month. This community in Florida easily has leases on the market in this price range.
In most instances an industrial lease involves an entire building. If your business is renting only a portion of the building, read the lease carefully to determine if the deal will include any common area costs that will be added to the base cost. Common areas may include items such as reception areas, hallways and bathrooms that are used by all of the building occupants.
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.
Typically the lessee will be required to purchase insurance as a condition of the lease. The property manager will request proof of coverage that identifies the amount of coverage and policy period. The property manager may also require proof annually from the the lessee that the policy is active and has not lapsed.
Businesses that manufacture products are vulnerable to water or fire damage. These threats may cause damage to the building, but they may also destroy inventory and the goods used to manufacture the end product. This can be devastating to a manufacturer. The property owner may also suffer damages in the event of fire or flood. It is a safe and accepted business practice for the lessee to have adequate insurance coverage in place.
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.
As illustrated there are several sources of additional expenses, other than the monthly lease cost. Careful research and review of all contracts is necessary to identify all costs to determine if this property is within the budget. A business needs to take the time to uncover all these facts in order to make an informed decision.
Buildings are typically listed at the cost per square foot, per year. It is up to the business consumer to calculate the monthly lease expense. For example, if a property is on the market for twenty dollars a square foot and it has twelve hundred square feet, the monthly lease cost will be twenty times twelve hundred divided by twelve, which is two thousand dollars per month. This community in Florida easily has leases on the market in this price range.
In most instances an industrial lease involves an entire building. If your business is renting only a portion of the building, read the lease carefully to determine if the deal will include any common area costs that will be added to the base cost. Common areas may include items such as reception areas, hallways and bathrooms that are used by all of the building occupants.
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.
Typically the lessee will be required to purchase insurance as a condition of the lease. The property manager will request proof of coverage that identifies the amount of coverage and policy period. The property manager may also require proof annually from the the lessee that the policy is active and has not lapsed.
Businesses that manufacture products are vulnerable to water or fire damage. These threats may cause damage to the building, but they may also destroy inventory and the goods used to manufacture the end product. This can be devastating to a manufacturer. The property owner may also suffer damages in the event of fire or flood. It is a safe and accepted business practice for the lessee to have adequate insurance coverage in place.
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.
As illustrated there are several sources of additional expenses, other than the monthly lease cost. Careful research and review of all contracts is necessary to identify all costs to determine if this property is within the budget. A business needs to take the time to uncover all these facts in order to make an informed decision.
About the Author:
If you are searching for information about industrial leasing, go to our web pages online here today. Additional details are available at http://www.danburg.com now.
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