Whether you are looking for a warehouse facility, manufacturing space, or a showroom building, industrial spaces are in high demand in Maryland. Industrial rent rates have recently risen about 2% each year, making industrial spaces the fastest growing type of all commercial properties. Renting an industrial space is preferred by most, making it easier to maintain the space as well as expand with the growing business. If you are interested in leasing an industrial property in Maryland, here are some of the potential costs to consider.
Most industrial properties do not come equipped with full building HVAC systems, however you will most likely lease a space where the previous owners already installed a unit. The downside to this is that there is no way of knowing how well the previous tenant maintained the system. When negotiating your Maryland industrial property lease, you should request that any major repairs or replacements of the HVAC system be the responsibility of the landlord. The upkeep afterwards will typically be your responsibility as the tenant. An inspection should be done prior to signing the lease to evaluate the condition of the HVAC unit.
Landlords don’t always calculate square footage the same exact way. Sometimes, they will incorporate the area below the drip line and others will start from the outside of the wall rather than the inside. To be sure of exactly what you are paying for, always inquire about how the landlord calculates square footage. You can even go the extra mile and have a professional measure the space for you. Ideally, you should be paying for only usable square footage, which is only the actual space you are using for business.
Triple net leases are a common type of commercial lease that puts the majority of the financial responsibility on the tenant. Other types of leases include lower operating expenses, but may have a higher monthly rent. With a triple net lease, the tenant is responsible for property taxes, insurance, and maintenance. Be sure to discuss the possibility of excluding certain costs, such as the HVAC repairs/replacements mentioned earlier and costly roof repairs.
Ideally, the industrial property lease that you choose should have the loading accommodations necessary for your business. However, if the property doesn’t include an adequate loading area, you will need to see if your landlord is willing to install what is needed. A higher loading dock and larger truck area is needed for big 18 wheelers. Some businesses will need the ability to drive their trucks into the actual warehouse. If your industrial property requires a loading area, be sure to consider how it will affect the cost of the space.
Just like loading areas, the size and features of your parking area will depend on the amount of vehicles coming to the property and their size. You should also consider if you need long term and overnight parking for vehicles. Parking lots require consistent maintenance and some landlords will attempt to put this financial responsibility on the tenant. Because parking lot maintenance is a long term expense and accounts for the future property value, the landlord should pay this expense.
Want to find an ideal location for your growing Maryland company? At Newspace Commercial, we fully represent the tenant looking to find the perfect commercial space.
Born from AJ Properties, an Anne Arundel County based commercial real estate firm, Newspace Commercial is designed to focus solely on Tenant Representation services, ensuring that you find your perfect business space, avoid mistakes, and negotiate the best deal.