Should You Lease Industrial Space for Your Offices?
Considerations for moving your business into an industrial building?
Industrial parks house a diverse array of tenants. But not every industrial space will serve your needs. Here’s what you need to think about before signing a lease.
As the cost of leasing office space in Boulder rises, startups, tech-based companies, and even retailers are looking at alternative options for housing their operations. Industrial parks have opened up as a good alternative in many cases.
These open, flexible spaces offer plenty of benefits. Along with the possibility of lower rent, industrial spaces can lend a funky vibe that has tremendous appeal and can offer open work environments that enhance employee collaboration and productivity.
However, industrial spaces were originally meant for industrial operations, so there are some important factors to consider.
It’s rough, but is it too rough? Brick walls and high ceilings are one thing. But a completely bare, un-insulated space probably isn’t what you have in mind.
Other important questions to ask if you are considering an industrial space for your office:
- How much work does the space need before you move in?
- How much will you be allowed to alter it?
- Are the utilities suitable?
- Does the space have the basics needed for office operations, such as sufficient electricity, heating, and phone lines?
- How about Internet?
- Do you know how much bandwidth you will require and whether it will be available?
- Who are your neighbors? Are you OK with the smell of all kinds of various types of food? At first, that bakery next door might smell like heaven. But over time, will it be a distraction?
- How much machinery will be running next door, and how noisy is it?
- How much truck traffic is there, and can you cope?
What are the codes and restrictions of the industrial park? Consider signage, for example; do you need people to be able to find you? Will you be allowed to install signs not only at the park entrance, but also inside the area to help visitors get to your door?
What will your lease look like? How different are leasing terms for the space compared to traditional office spaces? Will you be able to share space with another tenant, lock in a longer term, or have any amenities included?
A broker who has experience with a variety of properties will be able to answer all your questions, steer you to industrial sites that are appropriate for your business, and provide multiple options for your consideration. Brokers can answer your questions throughout the process, refer you to resources for adapting a new space, and even help you negotiate a contract to that ensures you a good fit and realistic terms.
The idea of creating a new space for your business — and making it your own — is exciting. Just remember that you don’t have to do it alone!
What are your biggest questions about leasing space for your business? Contact Todd Walsh, A Boulder CRE Broker, by phone at (303) 444.4888 or by email.
