Unknown costs can be the undoing a carefully planned budget. A manufacturer cannot afford to overlook any of the costs of industrial leasing. Boca Raton, FL, is a great market place for industrial properties and will be used as an example to identify costs associated with a monthly lease payment.
Industrial leases are listed at the annual cost per square foot. For example, there are many buildings in Boca Raton listed at twelve dollars per square foot. If the building has ten thousand square feet, the annual cost would be one hundred twenty thousand dollars. Divide that by twelve to get your monthly cost of twelve thousand dollars. The size of the space to be leased will greatly impact the ultimate cost.
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.
Review your lease carefully to determine the party responsible for paying utilities and property taxes. These expenses exist with any property. To fully understand the aggregate cost of leasing a property, you need to know if your business will be responsible for these added costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
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.
Each location is unique in terms of its environment. For example, Florida has a history of severe rain storms and the occasional hurricane. When viewing potential properties check to see if there are weak areas in the building that could pose some risk of loss to your company. Security is always a concern, and the cost of an alarm system needs to be calculated. Also identify the party responsible for paying the expense. In addition, ask if there is a security service that patrols the area and identify who is responsible for that cost.
In order to create and adhere to a realistic budget, a manufacturer needs to identify all the costs before committing to a lease. Take the time for careful review and research to accurately calculate the aggregate cost of leasing the property. An informed decision will help your business make the best decision.
Industrial leases are listed at the annual cost per square foot. For example, there are many buildings in Boca Raton listed at twelve dollars per square foot. If the building has ten thousand square feet, the annual cost would be one hundred twenty thousand dollars. Divide that by twelve to get your monthly cost of twelve thousand dollars. The size of the space to be leased will greatly impact the ultimate cost.
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.
Review your lease carefully to determine the party responsible for paying utilities and property taxes. These expenses exist with any property. To fully understand the aggregate cost of leasing a property, you need to know if your business will be responsible for these added costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
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.
Each location is unique in terms of its environment. For example, Florida has a history of severe rain storms and the occasional hurricane. When viewing potential properties check to see if there are weak areas in the building that could pose some risk of loss to your company. Security is always a concern, and the cost of an alarm system needs to be calculated. Also identify the party responsible for paying the expense. In addition, ask if there is a security service that patrols the area and identify who is responsible for that cost.
In order to create and adhere to a realistic budget, a manufacturer needs to identify all the costs before committing to a lease. Take the time for careful review and research to accurately calculate the aggregate cost of leasing the property. An informed decision will help your business make the best decision.
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