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
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
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.
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.
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.
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
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.
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
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
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.
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 :)
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!
Turner Racing Shells Ltd.
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.
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.
Understood, Mom got her real estate license in the latter 60's and her
brokers license in the earlier '70s. I haven't worked the profession but
I sure as hell witnessed it.
While the 'shop' I referenced was in a decent location it was something
you would find on a back alley. Uneven floors, damp, rickety doors,
something from Stump Town.