Renting an entire warehouse is nothing like paying for a temporary storage unit. Many business owners wish it were that simple, and so they treat their lease as such. This leads to countless (and often costly) mistakes. Know these common mistakes so you can avoid them the next time you lease a warehouse space in Florida.
Fortress CRE makes leasing a warehouse a smooth and efficient process for prosperous business operations in Tampa, FL.
Renting a Less Accommodating Space For the Sake of Cutting Expenses
Smaller warehouses are tempting for their lower rates, and always appear bigger when they’re empty, until you start putting inventory and people inside. This entices business owners in Tampa to make the mistake of leasing a warehouse that’s much smaller than they need, leading to troublesome storage issues that were destined from the start. These oversights are made under the premise of “making it work” for the sake of cutting costs. Consider this: Limiting your inventory space also limits your projected profits.
Not Accounting For the Additional Costs of Utilities and Operations
Maintaining a warehouse involves a lot more than just paying the monthly rent. What many companies in Tampa fail to realize is that it also costs money to reimburse landlords for certain maintenance and repair costs buried in the lease, to run the air conditioner for preservation of stock and personnel, to keep the lights running for close supervision, and to employ labor for inventory management.
Forgetting to Factor In Room For Future Company Growth
Florida companies that only lease warehouses big enough for their current stock find themselves locked in a contract that doesn’t meet their growing needs. Every business owner in Tampa wants their company to be recognized and flourish. Failing to calculate the possibility of expansion or improperly estimating the lease expiration timed with growth could lead to considerations for a larger warehouse space, and it’ll take time and effort to relocate your entire inventory.
Neglecting Local Zoning Laws, Permits, and Other Legalities
Some commercial properties in Tampa only allow for certain types of industries to operate within their facilities and warehouses. These regulations are made with the intent of maintaining safety among neighbors, limiting unsightly storage from the view of the public, and controlling operations, down to the use of heavy equipment, vehicles, and storage types. Failing to follow these regulations could result in a preventable dispute.
Choosing a Warehouse In a Poor Location That Is Difficult to Access
A single delay could mean a significant loss in company dollars. This often happens with warehouses in Tampa, FL, that are set in troublesome locations that are difficult for vendors to find or access. Warehouses that are too far from the freeway or require complex navigation through town may present lower rates, but at the cost of efficient business operations.
Only Measuring a Space By Width and Not By Height
Square footage works up and down, not just side to side. Many Florida-based company owners choose their warehouse by the size of the floor space. It’s worth considering the height of the space before signing the lease, especially if you plan on stacking and racking products.
Overlooking Critical Terms In the Lease Agreement
The number of companies in Tampa that don’t fully read their warehouse lease before they sign is enough cause for alarm. They’re often hit with “surprise” expense increases and “unexpected” defaults that would have been preventable with prior (and easily accessible) knowledge. A complete understanding of your lease terms, even if you need insights from an attorney and expert broker, is always favorable in the long run.
Consider All of Your Options. Meet With a Fortress Commercial Real Estate Expert to Find the Perfect Warehouse For Your Business!
Avoid these common mistakes and manage your Tampa company in the most efficient way possible when you lease a warehouse in Florida with Fortress Commercial Real Estate (CRE). Contact us today to learn more about our industrial real estate services.
