Popular Terms for Warehouses Leasing
Leasing warehouse space is critical for corporate businesses that have a lot of goods to store and just don’t have the space on their own property. They pay monthly to maintain the space, which should include security, ventilation, and temperature controls. Businesses need extra space for storage of anything from furniture to cars to electronics. Tenants pay a monthly rent based on a number of factors, such as total number of square feet. To lease a warehouse, you’ll need to consult with a real estate agent skilled in renting warehouse space for furniture or other use. Refer to these top terms when researching warehouse leasing options.
Commercial real estate – Different from residential real estate, this type focuses on land-based property that generates revenue and is used for business storage purposes.
Surplus charges – Extra fees on top of the base rent, such as additional taxes, load fees, and Common Area Maintenance (CAM) fees.
CAM fees – There are two types of these extra fees: variable CAM fees, which can change over time, and fixed fees, which do not change. These costs help the owner of the commercial property defray direct expenses for common areas, such as hallways, lobbies, and parking lots.
Option to renew – This is a clause within a lease agreement that allows the tenant the option to renew the lease at the end of the contract. You may have the option to renew at a predetermined fixed price, rather than be at the mercy of the current fair market price.
Use clause – A clause within the lease that specifies how the space can and cannot be used by the tenant. This is to protect the landlords’ property, but be sure to review the fine print so that such clauses don’t impede on your company’s operation.