Are you considering leasing a commercial property in Perth? Starting up a new business or moving your existing company to a new location can be expensive.
Leasing a warehouse or industrial space requires serious consideration. Depending on the amount of space you need and the services you want to employ, there are several factors to consider before you sign on the dotted line.
Here are 6 tips to help you save money when leasing a commercial property.
Pay For Space According to How You Use it
The first step is to ensure you are paying for your warehouse space according to how you are using it. A simple determination of measurement can create an opportunity for saving money on a commercial lease. Determine how much of horizontal and vertical space will be utilised.
For example, will you be utilising a floor space only or do you need additional space to stack up your goods up to the ceiling? If so, make sure that there are no structural blockades like steel beams preventing you from arranging your products. If you have identified structural constraints do not pay for space you will not be using, talk to your landlord and save money on renting a warehouse.
Exclude Some Maintenance Costs
Maintenance costs are necessary costs for upkeep when renting a commercial property. Tenants are obliged to keep the property in good working condition but that does not mean you should pay all the costs. To save you money in the long term determine the following:
- Who is responsible for performing and paying for fit outs and repairs?
- Who is responsible for replacing equipment attached to the warehouse?
- Would I be required to install signs?
- Is the landlord willing to pay for future warehouse alterations and improvements?
The answers to these questions are important to know early because you do not want to discover you are responsible for such expenses after signing the contract. When negotiating your lease, it is recommended you include HVAC maintenance and servicing as a maintenance cost that you are responsible for any major repairs and alterations as the landlord’s responsibility. Learn more about the outgoings on commercial rental property.
Optimise Use of Space
The importance of an efficient and safe workspace cannot be overstated. You can maximise the performance of your space utilising smart fit outs. Do not start with the racking, start with a plan for optimal flow of goods through your warehouse space. The most common fit outs to optimise your space include:
- Walls and Partitioning
- Mezzanine Floors
- Floor Coverings
- Line marking
- Shelving and Storage
- Pallet Storage Solutions
- Warehouse Equipment
Is your warehouse perfectly optimised already? Consider subleasing part of your property to a third party. This can be a good idea if you have more space, as it allows extra cash flow to help with the rent.
We’ve also put together a list of easy to understand tips that will help you be better informed when looking at Perth warehouses to lease and put you in a better position to negotiate the price of your rent.
Research Surrounding Properties
In an ideal world, your first lead is the right fit for your commercial space requirements. However, this is rarely the case. Review all surrounding similar properties and be aware of what they are charging per usable space. This will help you negotiate the rates for your space accordingly and give you an idea of how much room you have to haggle.
You could also introduce yourself to the commercial agents in the area and have them alert you to new properties on the market. If you can bid before anyone else, you might be able to get the price you want.
Review Your Contract Carefully
A commercial lease contract is a legally binding agreement. It is a technical document that can be difficult to understand.
Before you sign a contract, learn how to negotiate a commercial lease to get what you want and know what you’re committing to.
Your commercial lease agreement will contain a process for changing the rent, usually every year. Rent reviews are standard practice for commercial leases and could be an opportunity to save you money too. For example, you may choose to commit to a longer lease agreement and therefore be able to negotiate a lower rent.
Consult a Commercial Property Expert
If you’re still not sure how to save money on renting a commercial property, speak to the local commercial real estate experts at Ross Scarfone Real Estate. We specialise in commercial and industrial buildings for lease in Perth’s south-east corridor of Belmont, Welshpool, Kewdale and surrounds. You can view our entire list of properties to lease and request a tour of the available commercial rental properties in the area.