Leasing industrial space for hobby use

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.
Reply to
AL
Loading thread data ...
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,
Reply to
V8TR4
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
Reply to
George M. Kazaka
Don't make a big deal with the owner about whether this is a hobby or a business. He just wants to know that you'll pay the rent and not burn the place down. Tell him you're in businesss ... the fact that you don't make any money will be known only to your accountant!
Dave
Reply to
DGolber
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 machinist that that guy who just went belly up leaving me with a $50K clean up of solvents and other yet to be identified chemicals dumped in back of the building.
AL wrote:
Reply to
Glenn Ashmore
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
Reply to
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.
Reply to
Glenn Ashmore
Hey! don't throw those chemicals away, us hobbyists could use them :-)
Reply to
ATP
You bet!
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.
Reply to
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.
Reply to
Roger Shoaf
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.
Reply to
Mark
If it's going to take seven years to get it built, I would find a different contractor.
).
Reply to
CW
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 :)
Reply to
V8TR4
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.
Reply to
Glenn Ashmore
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.
formatting link
Reply to
Matthew Turner
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.
Reply to
Mark
If your SO is like mine and you are letting her use some of the space in 7 years she will have squeezed you out and you will be back in the regular garage. :-)
Reply to
Glenn Ashmore
On Mon, 22 Dec 2003 18:39:35 -0700, AL wrote (in message ):
I rented a "stall" in a segmented warehouse a number of years ago It had a steel walkthrough door and a 12 foot roll up, about 800 ft^2. I had to get my own 220 power run in since it only had a single shared 110v 15A circuit which cost about $600. Rent on the space was about $200/month (no other utilities). They didn't really care what I did, just as long as rent was paid. Others had small machine shops, chile roasting/packaging, potato chip distributor, etc.
-Bruce
Reply to
Bruce
That's what you think ... it will actually belong to the local taxing authority. Try not paying them and see how much your "ownership" counts. :(
Reply to
Swingman
Just for calibration purposes:
For another project I checked with a local real estate guy on warehouse space. valid for the Minnneapolis area:
Standard office warehouse space in the suburbs, off in some industrial park, you've seen them, tiny reception area, larger office, smaller office, store room, 30' wide, 90' deep, Loading dock in back, 4" floors, 220 power but not 3 phase. $4 a square foot per YEAR for the warehouse space, $10 a square foot per year for the office, figure $6 per foot blended. 2700 feet would be around $16000/year or $1350 per month. I've seen small distributors, woodworking shops, machine shops, fabricators, assemblers, etc in these spaces.
Another outfit subdivides this into smaller spaces. Price would still be in the $6 range. 800 feet would be $400 a month, not horrible for a newer building in a place where you can park your car outside and still have wheels on it when you get done inside.
AL wrote:
Reply to
Roy J

PolyTech Forum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.