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Office, Warehouse and Industrial Space Tips
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Add-On Factor: Buildings vary on their
load factor, the square feet added to your space for the
common areas. We can explain the “load factor,”
“loss factor,” “New York stretch,”
“common area factor” in detail and compare
buildings for the best efficiency. For industrial space or warehouse space, be aware of “dripline”—a way for landlord to charge for unenclosed space.
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Negotiate Terms: In addition to the
rent, many items in a lease can be negotiated - such as
when operating expenses are passed through, tenant improvements, covered parking, expansion options,
renewal terms, first right of refusal, signage and after
hours air conditioning costs. For industrial or warehouse space, who pays if the HVAC unit fails? We will review the areas
of a lease that are important to you.
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Building Hours of Operation: When does
the building open and close to the public? What are the
standard hours of operation for the air conditioning and heating? How are the leased premises accessed after hours?
The answers to these questions can have a significant
impact on your business operations—and budget!
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Effective Rental Rate: Landlords can structure
their rent in a variety of ways such as triple net (NNN), base
year, modified industrial, plus electricity and janitorial
and gross lease. We will explain the rent structure of
properties being considered and provide an analysis so
all properties are compared on an economic equal footing.
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Floor Plans: An efficient floor plan
works better for a tenant, saves space and therefore saves
rent money. We help review existing floor plans or “to
be built” floor plans to see if any remodeling or
changes would be beneficial.
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Types of Properties: Central business
district high rises, garden offices, corporate campuses,
flex buildings, mixed-use properties and suburban buildings
are some of the options available. We can explain the
benefits of each and help determine the most suitable
option.
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Location: Consider not just an area
of town but also the travel time to company members' homes,
restaurants, the airport, hotels and key customers. We
can show you alternate roads to cut down the travel time.
Should there be a price difference between various areas
of town, we will bring them to your attention.
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