Unknown costs can be the undoing a carefully planned budget. A manufacturer cannot afford to overlook any of the costs of industrial leasing. Boca Raton, FL, is a great market place for industrial properties and will be used as an example to identify costs associated with a monthly lease payment.
The first thing to consider is the square footage cost. Residential properties are listed at the cost of the monthly rent. However, industrial property is typically listed at the annual cost per square feet. To determine the monthly cost multiply the price per square feet by the number of square feet and divide that number by twelve. With many properties available in the twelve dollar range, Boca Raton is a good market for industry.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Clearly identify the party responsible for paying the property taxes, your business or the property owner. Property insurance and utilities are other cost factors that may increase your monthly expenses significantly. Potential lessees need to know if they will be responsible for these costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
Manufacturing in most cases includes the storage of some of the inventory and the goods used to manufacture the product. The threat of fire and water damage can destroy part or all of inventory and production goods. The manufacturer needs to have sufficient insurance to cover the costs of these losses. These destructive events may also damage the building itself. Insurance coverage is for your benefit and for the benefit of the property owner.
Each location is unique in terms of its environment. For example, Florida has a history of severe rain storms and the occasional hurricane. When viewing potential properties check to see if there are weak areas in the building that could pose some risk of loss to your company. Security is always a concern, and the cost of an alarm system needs to be calculated. Also identify the party responsible for paying the expense. In addition, ask if there is a security service that patrols the area and identify who is responsible for that cost.
The cost of the lease and all the extraneous costs must be factored into the monthly expenses. Unseen costs can play havoc with your budget. It is up to the lessee to be fully informed regarding the extent of all expenses associated with leasing the building. Get all the facts to make an informed decision and ensure the future success of your manufacturing business.
The first thing to consider is the square footage cost. Residential properties are listed at the cost of the monthly rent. However, industrial property is typically listed at the annual cost per square feet. To determine the monthly cost multiply the price per square feet by the number of square feet and divide that number by twelve. With many properties available in the twelve dollar range, Boca Raton is a good market for industry.
There may be added costs for the use of common areas. Even manufactures that lease an entire building can be subject to the upkeep of outside common areas in an industrial park. The parking lots and outside grounds are examples of outside common areas in an industrial park. The lease itself should itemize common areas and the extent of costs to the lessee for usage.
Clearly identify the party responsible for paying the property taxes, your business or the property owner. Property insurance and utilities are other cost factors that may increase your monthly expenses significantly. Potential lessees need to know if they will be responsible for these costs.
Owners and their property managers usually require the lessee to purchase insurance for any damages caused to the property during the time of the lease. Most property management companies will require proof that an insurance contract is in place before executing the lease. The property management company may also require annual proof of the renewal of the insurance and the extent of the coverage.
Manufacturing in most cases includes the storage of some of the inventory and the goods used to manufacture the product. The threat of fire and water damage can destroy part or all of inventory and production goods. The manufacturer needs to have sufficient insurance to cover the costs of these losses. These destructive events may also damage the building itself. Insurance coverage is for your benefit and for the benefit of the property owner.
Each location is unique in terms of its environment. For example, Florida has a history of severe rain storms and the occasional hurricane. When viewing potential properties check to see if there are weak areas in the building that could pose some risk of loss to your company. Security is always a concern, and the cost of an alarm system needs to be calculated. Also identify the party responsible for paying the expense. In addition, ask if there is a security service that patrols the area and identify who is responsible for that cost.
The cost of the lease and all the extraneous costs must be factored into the monthly expenses. Unseen costs can play havoc with your budget. It is up to the lessee to be fully informed regarding the extent of all expenses associated with leasing the building. Get all the facts to make an informed decision and ensure the future success of your manufacturing business.
No comments:
Post a Comment