Top 10 Factors to Consider When Leasing Industrial Space
From size and spec to location and use class, what are the most important things to consider when leasing industrial space? We've listed our pick here...
It’s an exciting time to be leasing industrial space. The market has exploded in recent years, with record levels of take-up and the number of warehousing units in the UK rising by almost a third between 2015 and the end of 2020 , according to the UKWA.
Industrial units can differ wildly and a range of factors can influence how a certain space works for your business. Here, we’ve listed some of the most important things to think about when looking at taking industrial space.
The location of your new industrial unit is likely to play a major part in the shortlisting process. You could rent the perfect unit at the most attractive rate but if it’s a real hassle to reach then it’ll end up being more a hindrance than a help to your business.
Narrowing your search to units in locations accessible to your suppliers, workforce and visitors is always a good idea.
How FI Real Estate Management can help: We have industrial units throughout the UK so chances are high that we have a space in a spot that suits.
Huge complex operations are unlikely to find much comfort in a compact unit. Similarly, a company that just needs to store a few bulky boxes will be ill suited to a vast 68,000 sq ft unit at Severnbridge Industrial Estate [pictured top]. When it comes to industrial units, size definitely matters.
Paying rent is a given when leasing an industrial unit but there are other associated costs that can be easy to overlook, such as business rates, insurance and service charge. We’ve delved deeper into the subject of additional costs in this article.
How FI Real Estate Management can help: We’re upfront with all the costs you can expect to face during your lease, helping you budget effectively and better plan for the future.
Whether it’s a powered roller shutter, a loading area, or a six-metre eaves height, there are bound to be certain features you’ll absolutely need from your unit, so draw up a checklist of these ‘must-haves’ early on.
How FI Real Estate Management can help: Industrial units are more flexible than you’d expect and if a space you like doesn’t tick a certain box, we’ll investigate the possibility of modifying a unit to make it fit for purpose.
5. Transport Links
On a similar note to location, industrial sites close to motorways and major roads have the advantage of heightened accessibility and as such are often very popular and in high demand.
How FI Real Estate Management can help: Many of our industrial sites - like Astmoor Industrial Estate - sit near major routes, perfect for suppliers and transport companies.
6. Vehicle Parking
One aspect that’s tough to fix after the fact is where you store your vehicles. Consider whether your employees will require car parking spaces or if there’s enough room for your commercial vehicles.
7. Neighbouring Tenants
On fully let sites like Europa Trading Estate, it isn’t uncommon for tenants to strike up working relationships with neighbouring businesses.
For example, what one tenant produces can be the raw material for another tenant elsewhere on the estate, creating fresh business relationships and cutting transportation costs.
8. The Surrounding Estate
What’s your impression of the estate as a whole? These days, many industrial estates are evolving beyond being a collection of sheet metal units, such as Winnington Business Park, which will come with its own food offering and trade units when it opens in 2022.
9. The Lease Agreement
No-one relishes the thought of pouring over the ins-and-outs of a lengthy lease but take the time to comprehend any complicated terms and ensure you understand everything you’re about to sign.
How FI Real Estate Management can help: We can untangle any jargon or overly technical lingo so you’ll be able to sign the lease with confidence.
10. Property Use Class
While it is possible to change the use class for a property, it shouldn’t be assumed so clarify early on whether you’ll be able to achieve your intentions within a certain unit. Our comprehensive list of industrial unit use classes outlines what all the individual grades mean and their permissions.
Bonus: Is It Future Proof?
Leases last years, so think whether the unit will still be suitable in the latter stages of the contract. Will it require considerable modifications down the line to meet your business needs?
The time has never been better to invest in a new industrial unit - especially if you’re just starting out and embarking on a new business venture - and FI Real Estate Management is well placed to make it a reality.