Factors to consider when entering into a new lease for industrial property.
It is vitally important to look at the factors to consider when entering into a new lease agreement for industrial property. Once the contract has been signed, it is difficult to change or re-negotiate.
· Exactly what is being rented? Factory/ Warehouse, offices, yard areas, etc
· Are there any areas shared with other users?. (e.g., Shared yard areas).
· Rentable area of premises.
· Exact use of the premises and facilities.
· Date of Occupation of the Premises.
· Lease start date.
· The period of Lease.
· Lease End Date.
· Annual rental escalation.
· Deposit required.
· Renewal period and terms & date to be complied with for Renewal to be Valid.
· Initial Rental. (excl. Vat)
· What other initial costs are to be paid by the Tenant?. (e.g., Security, Operating Costs).
· How/ when do these costs escalate?.
· How are consumption charges (e.g., Electricity, Water, Sewerage, etc.) calculated and billed?.
· Suretyships (if applicable).
· Any special/ additional requirements requested by the Tenant?.
· Tenant’s legal entity to prepare all FICA documentation required by Landlord.
· Tenant will likely be required to consent to a credit check by the agent or the landlord.
· Resolutions when companies or trust are the legal entities.
· What are the Lease/ Administration costs charged for drawing up the contract?.
· Power requirements?.
· Height/ stacking requirements.
· Fire regulation compliance (e.g., Sprinkler systems, etc.).
· Loading, parking, paving, turning circle requirements.
· Flooring and lighting.
· Staff facilities.
· The timing of a move from previous premises.
· Cleaning up of previous premises.
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For further information and detail please contact Epping Property.
The information above is for information only and do not, in any circumstances, form part of any contract, either express or implied. No liability can be accepted for any errors or omissions and the Lessor or Lessee is encouraged to verify all facts prior to entering into any binding legal agreement.