Has anyone tried renting industrial space for hobby use? My little one-car garage just doesn't cut it anymore. Do the leasing companies only deal with business entities? Has anyone done this before? Any pitfalls? I know insurance might be difficult to obtain, but I'm not sure about anything else.
Hi Al,
I basically did that this month. I found a nice little place with 400sq feet less then 1 mile from my home. I am in the process of making it the way I want right now. I was able to have the electrical bill added to my current home account. I use my cell phone as my main phone anyway so did not need a phone line. I might be adding cable for a internet connection. If the city tax collector says you have to have a business license explain it is just your storage area.
It is a real pleasure being able to have my tools and work out of the house :)
Good luck,
so many places are begging for leasees, I'm guessing that the land barrons would gladly lease to Al-Queda.
dave
AL wrote:
As a Pro I have been renting Ind. space for years and the bottom line is Pay the rent That is all these folks want. Money talks and BS walks
There are a couple of hurdles to cross. Do you have money? OK, you meet the requirements.
Here in New England, there are many old mill buildings that are leased out for all sorts of things. Space can run from 100 sq. feet to 500,000 sq feet.
Some concerns are: Accessibility at the hours you want to use it. Security Who provides the heat Will they allow finishing You usually have to provide your own insurance for damage, theft, fire, etc. Rest room availability You may have to provide your own enclosure, additional light fixtures.
Some will want a long term lease with all sorts of legal stuff. Others want a months rent and a handshake. It is worth a few phone calls. Ed snipped-for-privacy@snet.net
Speaking as a landlord who rents industrial space, I don't care if you are commercial or hobby as long as you can demonstrate to me that you can pay the rent over the lease term, will actually occupy and regularly use the space so I can worry less about vandals, not damage the property and not do something to get the EPA or the DEA down on me.
For sure I would rather have a hobby mach> Has anyone tried renting industrial space for hobby use? My little one-car
IME *industrial* rents are quoted triple-net (net-net-net), and the costs on top (including RE taxes, utilities, etc.) can be a bit of a surprise to the hapless tenant. You may get more stuff included if the area is sublet or very small.
Best regards, Spehro Pefhany
That is true when you talk about more than a couple thousand square feet bit there is usually a lot of space in the range suitable for small shops rented on a gross rent basis. You do need to know exactly who is responsible for what on commmercial space. It is not the same as renting an apartment. As Spehro says, some leases make the tenant responsible for everything including fire insurance and taxes. Others the landlord pays taxes, insurance on the structure, maintains the roof and the hot water heater. Tenant pays all the other expenses. Still others, everything but janitorial srevice is included. There are all sorts of combinations.
Hey! don't throw those chemicals away, us hobbyists could use them :-)
You can get insurance you just have to find the right person to sell it too you. it can be hard finding smaller places but they are out there.
Right now there seems to be a glut of vacant industrial space on the market so you can pretty much find something that is tailored to your needs.
I rent a 2,000 Sq. Ft. space and I love it.
Large overhead door plus a loading dock. 200 amp 3-phase service. And now I can park in my garage again.
As for insurance: you might need liability insurance. If so, call your insurance broker and get a quote.
George.
The NNN leases are dependant on the market. In times of high vacancy, landlords are happy to find a qualified tenant with a simple rental agreement.
In some complexes, hobby shops are the preferred tenant as they might be short on parking spaces and they really don't want to umpire parking disputes.
It's wise to hire a lawyer to look over a lease agreement. I'm glad I did just that when negotiating a lease for my auto shop. We had a few items stricken from the leasing form that were too "pro landlord". He had enough prose in there to get my first born!
dave
Spehro Pefhany wrote:
That would explain it.
Wife and I didn't have anything but a house. I went looking to rent space. Around the corner was a ratty 4 bay with a small storage area. Guy wanted $500 a month, I pay all expenses.
I shit my pants.
We got a loan and built a garage/ shop that can hold 6 cars (tightly). It will be all mine in less than 7 years.
proving once again, it's usually better to own than to rent/lease! :)
dave
Mark wrote:
If it's going to take seven years to get it built, I would find a different contractor.
).
Oh yeah, another huge benefit for nuts like us, in a commercial property no one is going to complain if you are working at 3am and running a table saw. Well except for the guys who live in a store room someplace in one of your neighbors companies, but they aren't supposed to be there anyway :)
The key to all real estate value is location. A location with any exposure to customer trafic will rent for considerably more than a back alley shop regardless of condition.
Speaking as a tenant and the owner of a small business, finding the right landlord and the right space is the hardest thing about setting up a business. In the past five years I've had two serious threats to put me out on the street, and right now I'm in a battle because the landlord's heating contractor did a bunch of unauthorized work and they're trying to stick me with the bill, plus a $35 "management fee" if you can believe it. You'll hear lots of horror stories. The bottom line is: if you hear a little voice telling you not to deal with someone - walk! And whatever you do, don't take a space on "month-to-month" if you plan on doing any major work there. Good to see Steve Knight from the "oldtools network" on the list!
regards,
Matt Turner Turner Racing Shells Ltd.
You misunderstand.
At this time the garage and house are Ours and the Credit Unions.
Pay off is in less than 7 years. Then it's Mine, All Mine! Well, except for Wives parking spot and a few shelves.
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