Leasing a warehouse is one of the best investments you can make for your business; not only can you streamline tasks and reduce transportation costs, but it also comes with several benefits, like flexibility and scalability, depending on what your business needs. To ensure that you’re maximizing your warehouse space and avoiding costly mistakes, you need to take careful consideration of your leasing terms and agreements. In today’s article, we’ll be listing down a few common mistakes you should avoid when it comes to leasing warehouses.

Neglecting your warehouse assessment.

Many warehouses for lease are placed in prime locations, ideal for businesses since they’re close to suppliers, shops, and customers. These three are the first aspects you should look out for when finding a potential warehouse, hence the importance of conducting site visits. By doing this, you can also see for yourself the warehouse’s condition, layout, and accessibility.

Another important aspect to check is if the warehouse falls under the right zoning regulations—the property must follow the local zoning ordinances since you could be penalized if it does not.

Not reading the lease terms and conditions thoroughly.

The terms and conditions contain all the necessary information you need about your lease—from the duration to the inclusions, as well as the things you can and cannot do in the whole duration of your leasing term. Read through the terms and consider renewal options; however, also take into account the rent increase, which will happen over time, so you can also factor this into your budget and financial planning. When it comes to warehouse leases, you usually share them with a landowner, which helps ease your financial burden. However, make sure to clarify who is responsible for paying for maintenance and repairs since these can also be added to your operating costs.

Lastly, ensure that your insurance has enough coverage to protect you and your business assets in the worst-case scenario.

Miscalculating warehouse requirements.

Another common mistake when it comes to warehouse leases is underestimating your business’ growth. This is why it’s paramount to conduct market and business research so you can create a timeline and consider the possible future growth plans of your business. Your lease space is also directly affected by this, so ensure that your warehouse of choice can accommodate possible future expansion.

Among other things, don’t forget to neglect your storage needs; ensure that you have storage requirements for raw materials, finished goods, and packaging materials. While you’re at it, plan these areas and allocate them to your layout accordingly. Even though the property’s main function is a storage warehouse, it’s also ideal to incorporate a space, or at least an office or two for administrative work.

Failing to negotiate effectively.

When it comes to lease agreements, many people make the mistake of accepting the first offer immediately without negotiating the price or a few terms. Don’t be afraid to negotiate and voice out your concerns, be it renewal options or the lease length. While you’re at it, check to see if there are any hidden costs like utility expenses, property taxes, or insurance you need to pay for.

These are just a few common mistakes made by many, and by avoiding them, you can negotiate warehouse lease terms that align with you and your business needs.