What is a Warehouse Lease Agreement?

A warehouse lease agreement is a document that has the concord of a landlord who owns a warehouse and a tenant who will rent the warehouse. Some manufacturers have no place for storage that they need a commercial space that can sustain their needs. They will enter a storage agreement that will enable them to use the warehouse of the landlord or lessor. Being a lessee means that manufacturers should adhere to the terms of the lease. Any sample contract has its own rules that the lessee should comply with. Storage rental is much needed by manufacturers because they have products that need a place to be stored. So this agreement is needed by entrepreneurs.

A warehouse lease agreement can also be referred to as the industrial warehouse lease agreement, commercial warehouse lease agreement, warehouse space lease agreement, or warehouse rental lease agreement. Unlike a residential lease, a warehouse lease includes a loading dock that can be used in parking large trucks. The space is defined by the footage. The agreement contains the description of the warehouse or how can it be apt for storing products. It can have the features of the warehouse like safety measures and environmental controls.

Through the warehouse lease agreement, the relationship of the two parties can be maintained and they can settle the main terms of the agreement. A negotiation can be done first to ensure that they can have the most out of the agreement. After negotiating, they can draft the contract using a warehouse lease agreement format. The agreement may last for years, for the common need of manufacturers requires years. The agreement can be one page agreement or more. But what is important is that both parties completely agreed with the terms of the agreement.

Elements of a Warehouse Lease Agreement

Maybe you are being choosy with warehouse agreement format or commercial rental agreement format. If you want the best in creating your warehouse rental agreement, you must ensure that you can put all its elements to make it complete. Read the following and know some of the elements of a warehouse lease agreement:

Information of Parties: You must begin the agreement with a title. Define the nature of the agreement. The contract should declare what it is all about. Write the best title that describes your agreement. Then the title will be succeeded by the information of parties. You must put the full names of the lessor and the lessee. This is required for identification. You must state to whom the agreement is addressed. Write the names carefully to avoid errors in the contract. The names can be vital in cases of a chance of a lawsuit.Warehouse Description: There should be a definite description of the warehouse. You must place the address of the warehouse. You must state its size. Include all the features of the warehouse. Be definite with its capacity. You have to be definite about the expectation for the warehouse. The lessee should know the description of the property that he or she is about to lease. Without a description, the lessor may have the right to provide another warehouse. So for the lessee to be sure that he or she can have the warehouse that he or she wants, the description of the warehouse should be definite in the contract.Lease Term: This is the period of lease or the length of time that the tenant will rent the commercial property. It can be short-term or long-term. The warehouse can be leased for months or years. It depends on the needs of the lessee. Be definite on the lease term. This will define the length of the agreement. Your contract will end after the end of the lease period. If you want a renewal of terms, you can include the details about it in the agreement. Write your terms for the possible renewal. If there will be no need for it, you do not have to write about the renewal of terms.Payment Terms: This is the section for payment details. You need to carefully include the price that the lessee has to pay the lessor. This will be the rental price for the warehouse. Terms of payment should be also written in the agreement. Negotiate first on the payment terms to make things convenient for both of you. The required payment methods should be cited in the agreement. Through this, the lessee will pay the lessor. Be careful in stating payment terms because you may not want to have trouble with payment. If both parties will adhere to the payment terms, there can be nothing that can ruin the relationship between the lessor and the lessee. They can exchange money for the property and it is one great achievement on the deal.Terms and Policies: The owner or the landlord surely has terms and policies for the warehouse. Of course, the owner has to ensure that the lessee will take good care of his or her property. The landlord has to put terms that can make this possible. He or she has to ascertain that the lessee will not be negligent which will result in the warehouse being destroyed. The lessee should remember that the warehouse is still someone else’s property. On the other hand, the lessee can also have some terms that he or she will want to request from the landlord. The lessee can negotiate with these terms and they can be added to the agreement. Both have to follow the terms and policies so that there will be no problem with the deal.Governing Law: Some laws will cover your agreement. You need to write the governing laws so that both of you will know how to keep these laws. Be sure that these laws adhere to your state laws. Before writing these laws, you may want to review your state laws to know that you will write the right things. Be decent and professional in observing all the laws in your agreement. You may not want the other party to bring the case to court if ever a law will be broken by you.Signatures of Parties: The agreement will not be complete if it does not contain the signatures of both parties. Both of you need to sign the agreement to make it binding and legal. It is for the protection of your rights and interest. Properly sign the agreement and ensure that you will keep the terms of the agreement as that is what your signature denotes.

Tips on Warehouse Lease Agreement

Are you searching for a sample warehouse lease agreement or a free warehouse lease agreement template? Do you need it because you want some tips that you can apply to your agreement? You do not have to look further for tips. We can provide some tips for you. They are the following:

Consider the Footage: Of course, you need a warehouse that can be good for all your merchandise. To be sure that a warehouse will fit your needs, you must check its storage capacity. Consider its cubic and square footage. You have to calculate carefully whether the warehouse is enough for all your products. You cannot rent a warehouse that will not accommodate all your merchandise. To avoid this, you can allot a little allowance in your calculation. By doing this, you can have extra space if ever you will expand your business and will have more products.Consider Your Products: Manufacturers have different products or goods. Before choosing a warehouse, you must first consider your products. Will the warehouse be good for your products? You have to consider factors like dust, temperature, and humidity. Choose a warehouse that you know can keep your products well. You cannot store your goods in a place where they can be destroyed. So be sure that the warehouse will be a good place for your goods.Consider Your Equipment: Your equipment can also cover spaces in the warehouse. So before leasing a warehouse, you must ascertain that it can accommodate all your equipment. You must consider all doorways to ensure that they can be proper for your equipment. So in calculating the footage of the warehouse that you will rent, remember your equipment and include them in the calculation. This is very much needed because you cannot operate your work in the warehouse without your equipment.Consider the Outside: You need to ensure that the outside of the warehouse will also be good for use. Can it accommodate the cars of your employees and your trucks? Is the outside well lit? Can your trucks move with ease in the loading dock? Just as you will consider the inside of the warehouse, you should also ensure that the outside will fit your needs. You may also want to consider the perfectness of its look on the outside. Who may not want to have a beautiful place for all your goods? So, this is one thing that you should also consider.Consider Operating Costs: Before you will lease a warehouse, you must consider all the costs that you will have to pay for the utilities and maintenance. There can be landlords that can offer the utilities and maintenance to be included in the lease. You should choose this kind of warehouse instead. You can save a lot of money and you do not have to worry about maintenance. Remember that every cent can count in your business. So if you can save money, select a warehouse where you do not have to spend a lot on operating costs.Consider the Area: You must never forget to consider the area where you will lease a warehouse. Is the location a good place? Does it have accessibility? Research the area before making a lease. Know if it is okay for a warehouse to operate in that area. Know also the commercial market trends to check if the warehouse is justly priced.

How to Make a Warehouse Lease Agreement

Do you need a warehouse lease agreement template or a warehouse lease agreement sample? Are you going to create a warehouse lease agreement? Well, know that we can provide some steps for you that you can follow. Read and consider the following:

  • Step 1: Know Your Space Needs

    The first thing that you have to consider in leasing a warehouse is your need for space. How much space do you need? You need to calculate your space needs in terms of cubic and square footage. Consider all the factors that can affect your needs. One of these is your goods. How much space do you need for all your goods? Do you consider expanding your business in the future? Because if it is so, you may need a larger space. You should also consider your equipment. Will all of them fit in the warehouse that you are considering? Include your equipment in the calculation of the space that you need. Consider the warehouse space, manufacturing space, and flex space. When you are sure of the space that you need, you can start finding a particular warehouse that you can consider leasing.

  • Step 2: Locate Industrial Property

    There are online databases that can help you in your search for a warehouse. You can search while you are in the comfort of your home or office. Select the type of property that will fit your needs. Compare properties using specific criteria. To decide, consider the price of the monthly rental and the size of the space that you need. You should also consider its location. The price of the warehouse depends on the price of the location. If it is in a better area, surely it is highly-priced. If you do not have enough budget for the best area, select a warehouse with a location that will suit your needs. Maybe you want to be close to your partners or your suppliers. Or you may want a location that is accessible. You should also consider the features of the warehouse. Check its loading docks, power supplies, onsite offices, and other things.

  • Step 3: Visit Properties

    As you narrow down your search, you should visit the properties that you have chosen. Make appointments to see the properties in person. Some warehouses may just look good online so you need to check if they can truly give your needs. You should tell the agents about your need so that they can help you find what you are looking for. They can also find solutions to your problems in leasing. If you have zoning issues like having hazardous materials in manufacturing, the agents can help you. To make your visit more effective, you can create a spreadsheet where you can list the good things about the warehouses that you have visited. Through this, you can compare all of them. You can be able to choose the best among them.

  • Step 4: Lease Basics and Terms

    A warehouse lease is more complicated than a residential lease. Renting a warehouse means that it should fit your business. You can choose to have a gross lease or a net lease. Through a gross lease, you will pay a high monthly rent but it covers costs for utilities, taxes, maintenance, and other things. If you want to focus on your business and do not have to worry about many things, this type of lease will be good for you. On the other hand, the net lease will make you pay the base rent. But you should pay the share for the utilities, maintenance, or taxes. Or you can even pay them in whole. One of the terms that you have to follow in the lease is by paying a security deposit. But if you will follow all the terms, you will have no problem with the lessor. After signing the agreement, you can have a warehouse that you can use for your manufacturing needs.


How much is the lease for a warehouse?

The price of the lease of a warehouse depends on the location of the warehouse and its features. The average lease for a warehouse is $0.85 – $25 per square foot per month.

Where is the best city to have a warehouse?

Atlanta, Georgia is the best city where you can have your warehouse. It has the busiest airports in the world so you can be sure that you can have your supplies earlier and can deliver your products better.

If you are a new entrepreneur who entered the manufacturing business, one of the things that you need is a warehouse. Maybe you are new and do not have enough capital to own and make a warehouse for your business. You should know that there are many available warehouses around and you can have a warehouse lease agreement. Well, do you need a template for a warehouse lease agreement? This post has 6+ Warehouse Lease Agreement in PDF | MS Word. You can have one for free. Download now!