Austin Warehouse Lease Terms

The term or length of your commercial lease is an important part of warehouse lease negotiations in Austin.  When it comes to Austin warehouse lease terms, most tenants do not take into consideration that at some point they will move, close down or expand or relocate. The industry standard for a lease term within a warehouse space in Austin is approximately 3 years for small warehouse space and larger warehouse space 5 years. It all depends on the tenant’s present situation.  Are you a start up company that needs some small warehouse space in Austin that requires a shorter lease term? If so, you should think about 2500 SF as a starter , even though there are some warehouse properties that are smaller than 2500sf , they are not in surplus and will require you to be flexible on your location preferences.

Keep in mind , the longer the lease term for a warehouse space the more leverage a broker like Shire Commercial has when it comes to lease negotiations. If  a tenant does not want to extend their lease term past 2 years, then you can expect little to no negotiation room.  Currently as of September 2012, the vacancy rates are moving downward which translates to a landlord’s market with higher rates and less concessions.  The challenge with short warehouse lease terms in Austin is that you cannot amortize finish outs over a short term and most properties do needs a bit of work for a company to be able to move into the space.

One of the ways to determine what is the best lease term for your company is to know when your peak season is. As an example, if your peak season in the fall , you would want to have your lease to end after the peak season.  An example would be your lease starts in September and is in 12 month increments, rather than having your lease term expire on August 31st, 2012 , a viable lease term negotiation would be for your lease to end say at the end of November instead. This would give you an extra 3 months to complete sales during your peak season.

Shire Commercial specializes in representing tenants and buyers for warehouse space in Austin, TX . By tracking warehouse listings , rates and news internally we can respond more efficiently than most other brokers. Contact us today to find your warehouse space!