A warehouse lease agreement is a document outlining the rental arrangement between a warehouse owner and a business tenant. It lets tenants rent additional space to store their goods, products, and pieces of equipment that don’t fit where they normally conduct business.
This kind of lease is typically for businesses that require a lot of space for conducting logistics operations, managing goods processing, and storing inventory. They often have large-scale distribution and storage needs.
Alternative Form to a Warehouse Lease Agreement
If you don’t need a large amount of space, consider using a storage rental agreement for your smaller-scale storage needs.
Elements of a Warehouse Lease Agreement
- Landlord’s information: Provide the information of the landlord or property owner leasing the warehouse.
- Tenant’s information: Provide the information of the business tenant using the leased space.
- Premises description: Write a description of the premises, including its size, reserved uses, common areas, parking and loading spaces, and storage facilities.
- Lease term: State how long the lease will last.
- Payment terms: Include payment terms relating to the base rent, security deposit, operating costs, taxes, partial payments, past-due payments, and holding-over fees.
- Repair and maintenance responsibilities: Specify which party is responsible for certain repair and maintenance tasks.
- Default terms: Explain what happens if the tenant defaults on the lease.
Factors to Consider When Entering a Warehouse Lease Agreement
Square Footage/Space
Consider the warehouse’s available space in terms of square footage. If you don’t anticipate enough space, search for a bigger warehouse available for lease. On the other hand, you don’t want to get locked into a space that’s too big and pay for more than you need.
Your Products and Equipment
Think about what you need to store in the warehouse. If you have goods and products sensitive to specific weather conditions, ensure the warehouse you lease comes with climate control features. Furthermore, ensure the warehouse has the floor load and ceiling height to accommodate any heavy-duty equipment you need to store.
The Outside Area
Consider what you’ll need the outside of the warehouse to be like. If you think you’ll need a well-lit area and plenty of loading space, ensure the warehouse you choose can offer these features.
Location
Determine who will need to access the warehouse, whether it’s suppliers, vendors, and/or customers. Ensure the spot is close and easily accessible to key transportation routes for enhanced efficiency.
Operating Costs
Consider the costs associated with maintaining the warehouse. Some lessors include these costs in the monthly rental payments, while others leave it up to the lessee to cover them individually.
Learn more about arrangements for covering operating expenses by reviewing the differences between a triple net commercial lease, a gross commercial lease, and a modified gross commercial lease.
Warehouse Lease Agreement Sample
