Dynamically developing logistics and transport companies must constantly seek new solutions to maintain steady, sustainable growth. To meet the needs of their clients and maintain a high level of service, they invest in new technologies, expand their transport base, and increase their warehouse facilities. In our article, we will focus on the latter issue and the problems associated with it.
When intending to rent a warehouse, several issues should be considered. Every effort should be made to gather as much information as possible about the hall we are interested in. As noted by the president of the JARTOM Real Estate Agency, Tomasz Branecki: “We often focus on the most important matters (such as an affordable price or a convenient location), forgetting about seemingly less important details. However, it is worth remembering these seemingly secondary issues so that they do not turn into a primary problem in the future. A carefully conducted reconnaissance will save us nerves, unplanned expenses, and unnecessary strain on the company’s budget“.
An extremely important issue is the contract between the tenant and the entity renting the warehouse. The aforementioned document, binding for both parties, should not only be in accordance with the provisions of applicable law but should also not contain provisions that could be used against the tenant under certain circumstances. It is worth paying attention to individual elements as well as the general shape of the contract we are entering into. It seems necessary to commission the preparation of the contract to a law firm.
Before we rent a storage warehouse, we should carefully read the property documentation and all technical data, in particular regarding floor load capacity, heating system, ventilation, and other hall equipment. We cannot rely solely on developers’ promotional materials. Furthermore, special attention should be paid to whether the entity renting us the warehouse space is its owner. An important issue is also determining whether the utility facility and movable property are covered by insurance, or whether we will be exposed to costs in the event of an adverse random event. Hidden technical defects of the property sometimes become a problem for tenants. Sometimes it is enough to carefully read the technical documentation of the warehouse to avoid such troubles. However, sometimes even a thorough reading of technical data will not protect the tenant from an unpleasant surprise. Someone may simply hide information from us regarding, for example, the degree of wear and tear of the sewage system. In such a case, favorable lease agreement provisions are irreplaceable.
When viewing the property, let us not focus only on the building itself. Let us also take a close look at the place where it is located. Data on the property only in combination with information about its location allow us to make a rational decision based on a reliable assessment of the facility’s attractiveness. Before signing the contract, the tenant should find out whether the utility facility they are interested in has an appropriate access road. It is necessary to check whether there are any vehicle height restrictions on the route leading to the property or on the access road (e.g., a low tunnel or driveway). It is also worth finding out whether the surface of the access road is adapted to the traffic of a logistics company’s vehicles.
It may also be very useful to learn about the features of the area where the property we are interested in is located. It is worth answering questions such as:
1. In what area is the property located? Is it a typical industrial area, service-industrial, residential-service, or perhaps just residential?
2. What does the neighborhood of the hall or warehouse we want to rent look like? It should be checked whether there is a facility in the immediate vicinity that is burdensome for neighbors, such as: a waste incinerator, a slaughterhouse, or a chemical plant.
It is worth setting aside some time and looking at the facility for a bit longer than just during the property presentation conducted by the agent. The ideal solution would be to visit the place where the facility we are interested in is located at different times of the day, especially to check whether traffic jams form in the vicinity of the hall.
A problem that tenants sometimes complain about is also the lack of contact or difficult contact with the owner or building administrator. Before signing the contract, it is worth discreetly finding out what the availability of the people managing the property and the owner themselves looks like. A forward-thinking tenant should try to get the phone number and email address of a person they can turn to for help or information in case of problems with the owner’s availability. Some tenants complain about the lack of contact with the owner, while others deal with the exact opposite, though no less troublesome situation – frequent intrusions by the owner. Certainly, the first step towards solving this problem should be an open conversation with the owner and a written agreement on the rules for visiting the facility.
Of course, various unforeseen situations can always happen. It is difficult to be prepared for every eventuality. However, the more we know about the entity with whom we are signing the contract and the more credible it is, the less chance there is for unpleasant surprises.
Questions worth knowing the answer to before renting a property:
– What does the access to the property look like?
– Is the location of the facility convenient from the point of view of our plans?
– Is the person renting the utility facility its owner?
– Has the space we are interested in already been rented to another tenant?
– Is the property covered by insurance?
– What are the terms of contract termination?
– Will it be easy to contact the owner/administrator of the facility?
– Do we know the technical condition of the property well? What potential technical problems occur most often in this type of facility?
– Are there any so-called burdensome facilities in the area, such as a waste incinerator?
Article prepared by Tomasz Branecki from the “Jartom” Real Estate Agency:
The “Jartom” Real Estate Agency was established in 1992 and is one of the leading companies on the real estate market in Poland. “Jartom” experts have extensive experience in consulting and brokerage in logistics real estate. They specialize in leasing and selling warehouse buildings. Due to their focus on strict specialization, the employees of the “Jartom” Agency possess rich and comprehensive knowledge about the problems faced by companies renting warehouse space.