Negotiating a warehouse lease


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Negotiating a warehouse lease

You know how when you negotiate a retail lease, you can ask for a couple of months of free rent to get everything started.

Does it work the same way for Warehouse leases?

My store is running out of space so I found a great Warehouse pretty close to me. I’d like to negotiate two or three months rent free. I would only pay for utilities. I’m wondering if this is normal in Warehouse leasing since this is my first Warehouse.

Any of you ever had experience with warehouse leasing?

Negotiating a warehouse lease

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5 Replies to “Negotiating a warehouse lease”

  1. You can ask for anything you want, but in my experience delayed rent isn’t normally part of a warehouse lease. If you can make the case to the owner they may be okay with it, but I would expect those months to be added to the end of the lease.

  2. In this economy, probably not. Everyone wants a warehouse. I got a “free” month but they just tacked on a month to the end of the lease

  3. You can do that with a warehouse in a terrible location, where they’re having trouble leasing it.

    In a good location, especially if they know it’s convenient for you, you’ll be paying their normal rates and maybe more.

  4. Yes, but you would only get the base rent for free. You would need to pay for NNN. We are currently negotiating a 5 year warehouse lease and getting 4 months free rent.


    Ultimately it depends on how hot the market is in your area.

  5. The only thing you can do is ask. That’s the whole point of negotiations. They may say yes, they may so no, but there’s only one way to find out.

    Generally speaking, warehouse space is harder to get month(s) free because, by design, it’s ready to move into pretty much. Retail space typically requires more customization, which is why it’s more common to get a few free months. Also term length is a big deal. If you’re asking for a 5 year lease, with a 5 year option, they’ll be a lot more likely to give you a few free months than if you’re signing a 1-2 year lease.

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