How to choose a warehouse or production space
Renting step by step
Renting warehouse and production space is a key step in the development of your company. Choosing the right location, size and other parameters can be difficult, but with our proven approach we can help you make the right decisions. If you’re interested, we’ll be happy to help you with all the steps and coordination below
1. Define requirements and needs
Get to know your company’s needs in terms of warehouse and production space. Consider the size, location, technical specifications of the unit, transport links, and other factors that are important to your business. Also, take into account the future growth and development of the company.
2. Choose a real estate partner
We recommend finding a company that can provide you with expert support in the process of finding and leasing warehouse and production space. Do not be afraid to contact reputable companies that will also provide you with sufficient support in related areas (such as construction and technical support, etc.). Not always a smaller company means lower costs, especially when, usually, in the Czech market, the commission is paid by the landlord, not the tenant. From this stage onwards, your chosen real estate company should help you with all the next steps.
3. Market overview – mapping the options
It is important to comprehensively map the market at the start of your search. Unfortunately, it is not possible to rely solely on web servers, where we often find that online advertising often contains invalid or outdated listings. If you contact a real estate company (like us) – they should provide you with a valid and verified list of all available listings, which should match the reality.
4. A personal visit is priceless
A personal inspection of the property is crucial for several reasons. It gives you a better idea of the actual dimensions and layout of the space right from the start. During the viewing, you can better assess whether the space is suitable for your business. Another important reason is that you also have the opportunity to ask the landlord or broker additional questions and get additional information that can play an important role in the decision-making process. The more information you gather about the property, the better your decision making will be. Do not underestimate the importance of a personal visit.
5. Make a shortlist
Have you done the viewings yet? Now choose a few of the best options and make a shortlist. We recommend 3-4 options so that you do not make your decision unnecessarily complicated by a large number of offers.
6. Try to work out the layout design
Before signing a lease agreement, it is essential to verify whether the intended company activity can be carried out in the given location and specific premises – whether in terms of the zoning plan, approval or technical conditions. In the event that structural modifications are required, such as enlarging the office area, modifying access ramps, installing partitions, or other interventions in the layout, it is advisable to discuss the scope and cost of such modifications with the owner in advance. This is because these costs usually enter into the overall commercial arrangement and may be reflected in the rent, length of contract, or other terms of the offer.
7. Offers – request Head of Terms
Indicated prices within the offer can not be relied upon. What is important is a comprehensive offer from the landlord to your company in the form of the so-called Heads of Terms. This contains not only the rent amount but also all the other parameters and commercial terms that ultimately have an impact on costs and the whole transaction. Your adviser will help you obtain this and make sure the offer contains everything it should.
8. Comparison of offers
After a thorough assessment, a financial comparison of all bids received is important. It is important to compare not only the rent and possible incentives, but also to take into account and estimate the cost of preparing the premises to an appropriate condition, which is ultimately one of the decisive factors in the financial planning and comparison. We are happy to handle this for you. In addition to the financial comparison, a subjective non-financial comparison can also be made. Here you will capitalise on the time spent on personal viewings and weigh up the advantages and disadvantages of each space.
9. Negotiation of the Head of Terms
Once you have complete information and compared offers, now is the time to negotiate. However, it is important to focus not only on price, but also on other parameters that can ultimately have an even greater impact on the total cost. What you do not negotiate at this stage is already difficult to enforce during the fine-tuning of the actual lease agreement.
10. Choose the best spaces and sign HoTs
Once you have negotiated the main terms, read all the terms and attachments carefully and have the landlord compile the Head of Terms (HoTs) into a PDF. Make sure that all the terms are clearly set out and that you are fully aware of your obligations and rights. Then, if you are determined, sign. While this document is usually not legally binding, the parameters set out in it are no longer subject to change under the tenancy agreement.
11. Negotiate a lease agreement with the landlord
The landlord will usually prepare a draft lease agreement tailored to the agreed Head of Terms. Negotiate the details of the lease agreement, preferably with experienced experts or lawyers directly. Keep in mind that institutional leases for industrial space are not the same as those for residential space. The agreed basic terms of the lease should be adhered to in the contract, so it should mostly deal with legal issues.
12. Conclude a lease agreement
If you and the landlord have resolved all points of dispute, this is where the lease agreement comes in. The tenant is usually the first to sign it. It is important to check the incorporation of the original head of terms, but also all the annexes – especially the technical ones.
13. Handover and acceptance
When the premises are handed over, it is necessary, in the case of building modifications, to revise any defects and incompleteness, to draw up an appropriate protocol and to see to their rectification.
Choose your warehouse or production space
