Warehouse space lease
For many years we have been helping our clients to lease production halls and warehouses, representing both the lessees and the lessors.The total space of warehouse facilities that were leased as part of our clients’ projects is approximately 200,000 sq m.
The current times see an exceptionally dynamic development of commercial lease market, especially with regard to warehouse and production space. Due to the COVID-19 pandemic, increasing online sales, the instability of the domestic market, and consequently the need to secure the supply chain, more and more companies decide to lease their warehouse space in warehouse parks, BTS dedicated facilities or small SBU warehouses in cities, rather than purchase real estate. Many private investors have also found such projects an interesting investment target, as it combines a relatively high return rate with the security of the invested money.
It is not only companies in 3PL or e-commerce industries that decide to lease space in warehouses and production halls, although the demand is highest in these areas. Lease is chosen as the best form of securing the necessary space by start-ups as well as industry giants with an established position on the market. While both types of companies know the ins and outs of their business, they are not necessarily familiar with the nuances of lease agreements, especially if these include, for instance, a development part which defines the process of building a facility dedicated to the individual needs of the tenant, the so-called BTS. At the same time, the other side of the transaction involves entities specializing in construction and commercialisation of warehouse facilities, who have plenty of experience in implementing such contracts. Additionally, according to the market standard, the parties negotiate a contract template proposed by the developer.
If you think of starting negotiations on the lease of production or warehouse space, are in the process of doing so or have already concluded a lease agreement and need support with its proper implementation, we can help you in the following areas:
- preliminary negotiations, preparing commercial terms of contract, accepting the offer or signing preliminary documents such as a letter of intent or HoT (heads of terms)
- assistance in identifying risk areas related to the conclusion of a lease agreement for a dedicated, specific space (e.g. cold store), often independent space of the BTS (build to suit) type
- negotiating the terms of lease, in particular
- conditions regarding the expenditures (space arrangement) and participation in the related costs, responsibility for the proper adaptation of the space to the needs of the lessee
- delivery of the space with particular emphasis on the procedures for reporting and repairing defects
- the terms and conditions of paying the rent and the so-called service charges, including rent-free periods and indexation rules
- verification of payment security (e.g. bank / insurance guarantees, deposit / surety of the parent company)
- the scope of the lessee’s obligations, including the responsibility for the proper maintenance of the space
- the right of early termination or withdrawal from the contract
- assignment of rights under the agreement and sublease rights
- rules for settling expenditures after the end of the lease period
- analysis of the already concluded lease agreement regarding its proper implementation or its potential termination
- negotiating annexes to already concluded lease agreements