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Industrial Real Estate

What You Must Know About Industrial Real Estate

What You Must Know About Industrial Real Estate

Industrial real estate background 

Industrial real estate can include buildings which are used for a variety of purposes, including warehouses, research facilities and buildings used for agricultural purposes.  In some cases, the property has no improvements, such as buildings. However, most industrial properties do include buildings which are quite large, as to accommodate the business and the equipment utilized for that business.
 

Industrial property for lease
 
When a business leases industrial property, there are stipulations in the lease that must be followed by the landlord and the tenant. If either party breaks the lease, there are legal ramifications. Leases are contracts which are utilized for long term purposes, as opposed to rental agreements, which are short term.
 

Industrial property for rent
 
Renting industrial property is the best short term option for those that require property for a business. However, the terms can be changed each time the rental agreement expires, which can include large increases in rent and fewer benefits for the tenant.
 

Industrial property for sale
 
Companies which can get tax breaks for buying industrial property may select this option. However, many companies may find that they do better with shorter term options, such as renting and leasing.

Finding Industrial Property for Lease

Finding Industrial Property for Lease

Industrial property for lease can be located in each state. However, companies must first consider the laws, statutes and taxes in each state, before deciding on a location. For example, Arizona can levy an excise tax on companies which conduct business outside of the state.

 

Those that are looking for industrial property for lease must also consider the terms of a contract, as well as tenant rights in each state. Leases can be more beneficial than renting a building, as the terms include more stability in a lease. For example, renting generally includes a shorter period of time and when that short contract expires, the terms can easily be changed by the landlord. Whereas, a lease is more long term, which assures the landlord that the tenant will be there for some extended period of time, giving them the ability to grant more benefits to the tenant because if that stability.

 

In addition to certain terms, such as the cost of a lease, there are other terms in leases which may be more beneficial to both the tenant and the landlord. Landlords tend to be willing to make an improvement when they are certain that the building will remain occupied, which in turn, keeps their tenant happy.

 

There are some legal issues which can affect the lease and those individuals that are part of the agreement. In many states, companies that break their lease are subject to legal ramifications, as is the landlord if they break the lease.

                                                                                                                                                    


 

Finding Industrial Property for Rent

Finding Industrial Property for Rent

Those companies which require industrial property may choose to rent, lease or buy. The decision will depend on many factors, including the duration of time which the company plans to stay in one place. Buying property is the best long term option in many cases. However, renting is the best short term option.
 
The benefits of finding industrial property for rent are that tenants are only required to stay in that location for a short period of time. This can be beneficial for certain types of companies or those which are just starting out. For example, a company that is unable to survive and has signed a long term lease would still be required to fulfill the lease terms; whereas, industrial property for rent only requires a short term commitment.
 
While there are benefits to renting industrial properties, there are some downfalls as well. Rental agreements are short, which means that each time the rental agreement is renewed, the landlord may change the terms, which can result in frequent increases in the rent, as well as a decrease in tenant rights, such as the frequency of maintenance to the building.
 
Each company will have different needs and for some, the best option is finding industrial property for rent. It is important for both tenants and landlords to lean their applicable rights in their state. For example, in some states tenants have more rights than landlords and they can withhold rent in certain circumstances.