Landlord
5 Things Warehouse Landlords Should Do Before Leasing Their Property
Hector Lopez
Leasing a warehouse is about more than finding a tenant who can pay the rent.
The wrong tenant, weak lease terms, or poor property preparation can create expensive problems later. Before putting an industrial property on the market, landlords should focus on these five areas.
1. Know the Current Market Rent
Do not rely on what the previous tenant paid.
Warehouse rents can change significantly depending on location, building size, clear height, loading, power, yard space, and condition.
Review current competing properties before setting your asking rent.
2. Make the Property Show Well
A warehouse does not need to be perfect, but it should look functional and maintained.
Address obvious issues such as:
Broken lights
Damaged roll-up doors
Roof leaks
Poor exterior appearance
Trash or debris
Non-working HVAC or electrical systems
Small repairs can make a big difference when tenants compare several buildings.
3. Verify the Tenant's Use
Not every business works in every industrial building.
Before agreeing to a deal, confirm the tenant's intended use and whether the property has the correct zoning, power, parking, loading, fire protection, and permits.
A strong tenant is not a strong deal if they cannot legally operate at the property.
4. Negotiate More Than Just Rent
Important lease terms include:
Security deposit
Annual rent increases
Lease term
Tenant improvements
Free rent
Maintenance responsibilities
Assignment and subleasing
Insurance requirements
A higher rental rate does not automatically mean a better lease.
The entire deal needs to make sense.
5. Market the Property Aggressively
Putting a property online and waiting is rarely enough.
A strong industrial marketing campaign should reach:
Local businesses
Expanding companies
Nearby tenants
Commercial brokers
Industry-specific users
Businesses with upcoming lease expirations
The goal is to create competition for the space instead of negotiating with the only tenant who calls.
Need Help Leasing Your Warehouse?
The Warehouse Dealers specializes in industrial and warehouse properties throughout Southern California and the Inland Empire.
We help landlords position their properties, identify qualified tenants, market directly to businesses, and negotiate stronger lease terms.
Have a warehouse coming available? Contact The Warehouse Dealers to discuss the leasing strategy before putting it on the market.