4 Factors to Consider When Leasing an Industrial Property

4 Factors to Consider When Leasing an Industrial Property

4 Factors to Consider When Leasing an Industrial Property


When evaluating industrial properties for lease, you should analyze a number of factors to ensure the success of your business. These key considerations may include the proximity to major roads, the number of available parking spaces near the property and the locations of nearby vendors and suppliers. Of the many influencing factors, we’ve identified four of the most important points to analyze when choosing a home for your venture.


1.  The Condition of the Structure

The condition of any facility should be properly analyzed prior to any decision-making. It is most likely that you will lease an industrial facility under a triple net lease. This means that you, the tenant, will be responsible for most, if not all maintenance, property taxes and insurance. Additionally, allowing for a thorough examination of the roof, ventilation, plumbing and electrical system could potentially reveal issues that, in the long run, could cost your business. If a building requires repairs or renovations, you must address those items before your lease begins so that you will not have to address them as the tenant.


2. Competing Businesses and Proximity to Suppliers and Customers

Before selecting an industrial property, determine the locations of your competitors. It may be advantageous for you to be near your competitors, or it may not. Evaluate this situation for your particular business, and review the location of the industrial facility carefully. If you manufacture a product where you need raw materials delivered to your location and then, once complete, need to ship that product to your customers, your location becomes a strategic plan for your business.  Locating a facility that is easily accessible to your suppliers, while at the same time convenient to ship your product out to customers, can save your business money and make you more competitive.


3. Evaluating Potential Risks

By analyzing the risks of potential natural disasters such as earthquakes, hurricanes and tornadoes, you can determine if a property’s location and structure are appropriately suited for your needs. For example, if the property is situated within a flood zone or south of I-10 in a wind hazard area, you must ensure that the building’s insurance plan covers weather-related damage to avoid out of pocket costs for flooding or hurricanes.


4. The Lease

As mentioned above, most industrial facilities are leased with what is referred to as a “Triple Net Lease” or a Net, Net, Net Lease. Because most industrial uses are more intense than the average property, the tenant will be responsible for most, if not all, of the expenses. When leasing an industrial building, expect to budget for property maintenance, upkeep and repairs along with the building insurance and property taxes.   

At Billeaud Companies, our industrial sites are well located and maintained. If we don’t have something available currently that meets your needs, we can build to suit a new facility, custom for your needs on one of our industrial lots.  


Selecting a Property

At Billeaud Companies, we sell properties that feature sizable office buildings, retail hubs, industrial parks and storage centers. Our company also offers undeveloped land situated near commercial areas.

If you are looking to lease a space for your business, contact Jennifer Whitmore, vice president of Real Estate Operations at Billeaud Companies. With over 26 years of experience in real estate leasing, she will be able to quickly analyze your unique needs and provide the perfect home for your company. If you have any questions or want to schedule a tour, call 337-735-4225.