If you need to lease industrial land, don't take chances. The success of your enterprise depends on your land options. If you plan to make improvements to your industrial land, you need to work with a commercial contractor. They can help you avoid some of the pitfalls associated with industrial land leases. It's also important that you follow the tips provided here. These tips will help you navigate your industrial land lease.
Understand the Lease
If you're in negotiations for industrial land, make sure you understand the lease before you sign. Industrial land leases need more than your typical residential lease. There are several different types of industrial land leases; percentage, net, and gross. Percentage leases require the tenant to pay a monthly lease fee. Plus, you'll also pay a percentage of your monthly sales. With a net lease, the tenant pays a monthly lease fee plus all other costs associated with the property. Those costs include maintenance and repairs. With a gross lease, the tenant pays a flat lease fee each month, with all extra costs included.
Identify the Risks
If you plan to lease industrial land, identify the risks. You need to know if the land is located in a flood zone or if there's a risk of other natural disasters such as high winds or earthquakes. These risks can have an impact on the actual cost of your lease. For instance, if you lease land in a known danger zone, you may pay more for your insurance. Once you identify the risks, you can make a more informed decision about your lease options.
Know Your Neighbors
If you're in the market for an industrial land lease, get to know your neighbors. You don't want to lease land near a company that provides the same goods or services. Close proximity to your competition reduces your chance for success. Instead, choose a location that's separated from your competitors. This gives you the best opportunity to provide a one-of-a-kind service.
Discuss Compliance Issues
Finally, if you plan to lease industrial property, discuss compliance issues. Cities and municipalities are responsible for implementing their own zoning and compliance regulations. Depending on the type of business you run, there may be regulations about where you can operate. If you fail to identify zoning and compliance regulations, you may cause problems for your business. Avoid problems for your business. Identify zoning and compliance standards before you sign the lease.