Things to Consider when Looking for a Miami Warehouse for Rent
The most important factor to understand when choosing a Miami warehouse for rent is the configuration of the warehouse with respect to the type of business that is going to be placed in the warehouse. For example, does the warehouse have an adequate shape that will accommodate the inventory of the business, or will there have to be modifications to the interior of the warehouse?
Another consideration is the adequacy of the loading positions relative to the business. Loading positions are usually grouped into dock high, which is raised loading, street level loading, or ramp loading. What type of loading you will need is dependent on how the goods are received to your warehouse.
Another factor to consider is ceiling height. This is called vertical space and is essential to some businesses. Higher ceilings mean more storage capacity. Most new Miami warehouses have higher ceilings, as this is considered a valuable factor when deciding on a warehouse. This is one of the reasons that newer warehouse space costs more than older warehouse space, higher storage capacity. In my opinion, warehouse space should not be measured in square footage, but in cubic feet. A cubic feet measurement takes into consideration the vertical space of the Miami warehouse which has added value in terms of storage. As more and more warehouses are being built, we may see a conversion to this type of measurement.
Another consideration is the ratio of office space to warehouse space. Depending on the type of business, consideration needs to be given on the amount of office space that is needed. If a Miami warehouse is being considered for Rent, a prospective tenant will want adequate office space to meet his or her needs. I tell clients all the time that if they find a warehouse that meets most of their requirements but doesn’t have enough office space, or has too much office space, to find out if the landlord would consider modifying the office area to meet their needs. Too many clients dismiss an otherwise great warehouse because the office area doesn’t meet their needs before trying to work with the landlord.
Below are Miami warehouse Rent terms that every prospective tenant should know:
Rent Rate: This is the Rent amount to rent the Miami warehouse, which in Florida, is quoted on a yearly per square foot basis. For example, if a Miami warehouse is leasing for $6.00psf, this means that it is renting for $6 per square foot annually. It can be a little confusing because as a business owner and tenant, you’re primarily concerned with what you are going to be paying on a monthly basis. In order to convert this figure to a monthly basis, you would need to multiply this psf rate x the total square feet of the warehouse and then divide that figure by 12. This would give you a monthly rate.
Example for a (20,000 SF warehouse renting for $6.00psf):
Rent Term: Rent term for a Miami warehouse is the total amount of time from the execution of the Rent to the expiration of the Rent. Most Miami warehouses rent for at least a year, and usually involve terms of 3-5 years. The longer the Rent term, the more leverage the tenant has to negotiate a lower Rent rate because this shows the landlord that the tenant is committed to his warehouse and is confident that his business is going to be in business long term and is not in danger of going out of business. It also means that the landlord won’t have to expend money looking for another tenant anytime soon.
Rent Type: Rent type for a Miami warehouse is the type of Rent that is drafted between the landlord and the tenant. The lease type will determine who will be paying the expenses to maintain the Miami warehouse. There are three main expenses to maintain the warehouse, they are: cost of the common area maintenance or CAM, property taxes, and property insurance. Depending on market conditions, a landlord may agree to pay for some or all of these expenses. If they do agree to pay for all expenses, then this is called a Gross lease. If the landlord wants to not pay for any of these expenses, then this type of lease is called a Triple Net lease, or NNN. The third common type of lease is called a Modified Gross lease, where the owner is willing to share the expense with the tenant.
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