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Leasing a warehouse space can be a huge commitment. There are some things you should consider before agreeing to a contract, mainly because they can be difficult to get out of if the space isn’t meeting your needs or requirements. So what should you be asking and thinking about before leasing warehouse space? Here are a few factors to take into account:
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1. How easily can it be accessed?
Can your new warehouse space be easily located and accessed by those who need it most? Can it be accessed by customers, employees and delivery teams? Is it close to transport links, such as railways, motorways and airports? They’re all things you should be considering when it comes to leasing warehouse space.
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2. Does it need to have any special features or requirements?
Does the space you’re leasing need to have any special features or requirements, in order for you to get the job done? There’s no point in leasing warehouse space and then spending your own money retrofitting the things you need to ensure operations run smoothly. Check numerous warehouses for lease and choose one that ticks all of your boxes before committing. Not only does this help in terms of protecting your pocket, but it also makes it an easy and convenient transition during a stressful time.
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3. Is the warehouse in a suitable location?
Warehouse space leasing can be suffocating, depending on the conditions of the contract. As such, it might not be as easy or as simple to relocate to somewhere else if you find that the current lease space isn’t suitable. You might then become trapped in a contract that isn’t working for you.
Before agreeing to lease warehouse space, you should carefully choose the location you’re in. Is it easy for employees to get there? Can HGVs access it easily? Is it close to transport links, such as rail, freight and road? They’re all questions you should be asking before committing to leasing a warehouse space.
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4. Is the rent within your budget & when is it due?
Although quite an obvious thing to consider when leasing a warehouse space, you need to make sure that the rent is well within your budget. Would you still be able to afford the rent should your circumstances change? The advice is to not rent out a space that is at the top end of your budget. Try and go somewhere mid-range to give yourself some leeway and some financial padding going forward.
In addition, you should also make sure you’re aware of when the rent is due. Does it line up well with your income or will you be scratching around at the end of the month to make ends meet? These are both important things to consider when leasing warehouse space of any kind, regardless of the industry you work in or the size of the warehouse space you’re looking at.
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5. What is the lease length & is it protected by the Landlord & Tenant Act 1954?
Does the length of the lease cover the amount of time you need it for? Is the length of the lease too long? You need to make sure you’re agreeing to a contract that works for you as much as possible. Don’t give yourself the inconvenience of signing up for a lease that’s too short, and then having to go through the whole relocation process again before you need to.
On the other hand, don’t take on a lease that’s too long, because it incurs additional costs you didn’t factor in to begin with. Make sure the length of the lease works for you and see if there’s any flexibility in terms of changing the conditions of the contract to make it a more bespoke solution.
In addition, you should also check that the lease is protected by the Landlord & Tenant Act 1954. This covers both commercial and domestic rented dwellings, so make sure you know what your rights are before agreeing to a contract.
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6. Can the lease be broken at any time?
Sometimes, unexpected and unforeseen circumstances are thrown up and you will need to navigate through those challenges as and when they happen. That might mean breaking a lease, for whatever reason. Check how easy that would be if you’re looking to relocate.
Make sure you read the conditions of the contract, paying particular attention to the break clause. Is there an option for you to break at any time or is it a fixed period? Are there any penalties incurred if you do break the lease early? What are your responsibilities should you need to have the lease broken? Think carefully about these possibilities before agreeing to a contract when relocating warehouses.
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7. What are your obligations when the lease comes to an end?
When any lease comes to an end, whether it be in a domestic or commercial setting, some conditions need to be met before you leave the premises. What you should consider before agreeing to a new lease is to just check those conditions and requirements. Are they what you had in mind? Do they work for you both from a convenience and financial point of view? Is it something you can get on board with or are the obligations unreasonable? Think about this before committing to relocating to new premises.
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Multy Lift has over three decades of experience in the material handling industry, providing customers throughout the UK with unrivalled warehouse machinery and services to meet your needs. From forklifts and reach trucks to order pickers and pallet trucks, and everything in between, we can always be relied on to provide excellent service and quality equipment. For more information, get in touch with us today – we’re always pleased to hear from you.
