The San Fernando Valley offers a wide range of commercial leasing opportunities within its 260 square miles, particularly in Los Angeles. If you want to lease a warehouse, you can undoubtedly find multiple options to suit your specific needs. Warehouses for lease are available in all shapes and sizes with a variety of amenities.
One thing you will notice about warehouses for lease in the Valley is how their costs range widely. There are also different types of lease agreements that can affect your bottom line. This can make it hard to nail down how much you will actually pay each month. Before signing a lease document, review the basics of leasing a warehouse, below.
How Much Will a Warehouse for Lease Cost Me Each Month?
There are three main numbers used to calculate how much your San Fernando Valley warehouse for lease will cost you on a monthly basis. These numbers include:
- Square footage you need
- Your base rental rate, either monthly or annually
- Estimated operating expenses, also called CAM or NNN
Of course, beyond the price-per-square foot you also must pay for your warehouse utilities such as water and electric. NNN is another name for a triple net lease. This type of lease is one that makes the tenant responsible for all warehouse and property operating expenses.
Things to Clarify before Contracting a Warehouse for Lease
It is important to clearly understand your expected costs before contracting with a landlord for their warehouse for lease. Costs typically go well beyond the base rental rate. For an accurate cost estimate, ask the landlord the following questions:
- Am I responsible for paying for maintenance and performs that work?
- Who pays for and performs repairs?
- When equipment associated with the warehouse needs replacement (like HVAC), who is responsible?
- Does the rental rate include only actual square footage or also a common area?
- Am I responsible for installation of signs?
- Will the landlord pay for improvements made by the tenant during the lease?
What to Expect from a Commercial Lease
One of the biggest mistakes you can make is to treat your commercial lease like one for an apartment or storage unit. Contracts for warehouses for lease are actually very different than residential lease agreements.
Your warehouse lease can be critical in your business’ survival. It is important to realize these documents are legal contracts. That is why it is essential that you understand the whole document and the terms specified within it before you sign.
There are several commercial lease types. These types structure the tenant’s responsibilities versus the landlord’s. In other words, your lease structure specify what you must pay each month or year, beyond your rent.
Commercial warehouse lease structures include:
- Single net lease or net lease, making the tenant responsible only for utilities and property taxes and the landlord responsible for maintenance, insurance and repairs
- Net-net or double net leases, making the tenant responsible for insurance premiums, utilities and property taxes with the landlord paying maintenance and repairs
- Triple net lease, wherein the tenant must pay all building costs except structural repairs
- Full service gross or modified gross lease, the most common type of lease for multi-tenant buildings, splitting structural repairs and operating expenses between the tenant and landlord
Whatever type of lease your prospective landlord offers for their warehouse for lease, you need to pay attention to the details of the agreement. It is best to engage a commercial property attorney or experienced commercial real estate agent to review the document before signing. There is no standard format for warehouse leasing beyond the property’s commercial designation.
Find a Warehouse for Lease Near Me
The first step in finding your ideal warehouse for lease is simply contact the team at TradingCommercial.com. You can connect with commercial real estate agents on specific listings and enlist the support you need to find your ideal warehouse for lease in the San Fernando Valley of Los Angeles.