HOW TO SELECT A WAREHOUSE FOR LEASE, THE RIGHT WAY?
Finding a warehouse for lease is no easy ball game in Singapore. It can be frustrating as well as taxing. On the one hand, you have abundance of choices with options in choosing the location, size, and other needed essentials that meets your preferences.
Finding a warehouse for lease is no easy ball game in Singapore. It can be frustrating as well as taxing. On the one hand, you have abundance of choices with options in choosing the location, size, and other needed essentials that meets your preferences. Herein, you will be at a loss for words trying to zero-in on the perfect choice from the many options available. Similarly, on the other hand, there is great demand for a commercial warehouse space in Singapore. The demand at times can be so high that it makes the task of finding the right warehouse for lease, difficult.
However, they should not prevent you from still being selective and finding the precise warehouse for lease that you would ideally like to have.
While looking for the exact warehouse for lease, you need to factor in certain aspects to ensure that the warehouse you select eventually is suitable for your needs.
FACTORS TO LOOK FOR WHEN LOOKING FOR A WAREHOUSE FOR LEASE
There are certain factors that will most likely affect the operational and financial viability of a warehouse for lease. They need to be looked into carefully before you put your signature on the warehouse for lease agreement document.
A warehouse needs to be easily accessible, to not only the warehouse employees but also to trucks for ferrying goods from time to time. You need to make sure that the warehouse you select allows big trucks inside its confines, bring in huge machinery and equipments, and park overnight. Most warehouses do not exactly guarantee the same. Hence, you need to make sure that big trucks can ferry large equipments inside, their parking needs are well-taken care of, and above all, are large enough to accommodate whatever the size of the trucks and equipments.
If you have selected a big industrial warehouse for rent and looking to later use a part of it for non-storage purposes, like using it for having parties, or for hosting entertainment concerts, then you need to be aware of the zoning regulations governing the usage of warehouses and find out whether there is any provision in the regulations that allows for such activities in the area concerned.
ELECTRICITY & WATER
Warehouse activities require sufficient electricity and water supply, round-the-clock. There could be times when they may not be available in sufficient dosage or not available at all. Hence, to be on the safer side, you need to look into the issue thoroughly and conduct own survey to get the proper answers, before you go ahead with your decision.
MAINTENANCE & OPERATING COSTS
Warehouse maintenance can at times be a double-edged sword. Commercial warehouse for lease generally come with an agreement that the landlord pays for the warehouse maintenance, taxes, and insurance. However, certain warehouse landlords do not exactly follow it.
You need to study the lease agreement in full and be clear that there are no such loopholes; else you could find yourself paying for it from your budget resources. This could affect your budget calculations later.
A warehouse square footage generally factors in the warehouse space that is used, excluding the space that is not usable like those used for housing utility equipments.
However, certain landlords calculate the square footage of a warehouse by including even the perimeter of the warehouse building’s outside, instead of including just the building’s inside space that is actually used. Hence, before signing the warehouse for lease agreement, you need to be aware of the exact square footage of the warehouse that will be factored in for calculation.
FLOOR LOAD USAGE
If you’re one of those who look to store heavy goods or equipments in the warehouse, then you need to factor in aspects like how much weight the warehouse concrete slab that forms the warehouse’s foundation can handle the heavy items, without in any way getting damaged.
SAFETY AND SECURITY
A warehouse must provide for safety and security elements like CCTV or video surveillance systems; perimeter fencing; fire alarm and extinguishing systems; entry alarm systems, etc.
Some warehouses do not exactly provide them but mention them in their booklet. Hence, an in-person visit and study will help you understand the ground realities and arrive at the correct picture about the warehouse.
If your business involves hazardous or dangerous materials and chemicals, then you need to find out whether the warehouse you look to lease allows for their storage. Generally, Singapore Government laws prohibit the same for ensuring the safety and security of the surrounding communities.
Before you intend to consider the warehouse for lease, study the regulations for the location where the warehouse is located, and find out whether they can be stored or not. In case, they are allowed, you need to get proper certification for the same from the concerned authorities.
Warehouse for lease can often be a complicated process involving a complex web of documentation and paperwork. They can also carry a legal angle with several details and conditions. To be on the safe side, you need to enlist the services of an expert attorney for studying the lease deed and ascertain if there is anything amiss in the deed.
Likewise, you need the attorney’s guidance when negotiating the warehouse for lease deed with the landlord. Certain landlords are notorious for quoting inflated rental figures, and this is where the attorney can guide you to stay wary and instead, negotiate with the landlord a figure that is reasonable from a tenant’s point of view.
Last but not the least, you need to verify the antecedents and track record of the landlord. There are some who often have a criminal track record and this is where you need to stay away.
A warehouse for lease is a binding legal agreement that is based on relevant terms which can influence the viability of your business. It acts as the primary document to be referred to in the event of any disagreement or dispute arising between the parties to the lease in a court of law. Hence, it needs to be studied carefully.
To stay on the safe side all through, having an attorney by your side will work as a safeguard shield to overcome potential pitfalls and stay away from potential dangers that may lurk within a warehouse for lease agreement document.
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