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Legal tips for leasing industrial properties in California

On Behalf of | Sep 18, 2023 | Real Estate Transactions |

According to LA Business Journal, one of the most successful real estate markets in California is industrial. Leasing an industrial property is a complex process, but armed with the right knowledge, it is navigable.

Understanding the legal aspects of industrial leases can help protect your investment and interests.

Review the lease agreement

Before you sign any documents, meticulously read and understand the lease agreement. Pay close attention to the terms, conditions and responsibilities outlined in the contract, including the rent amount, payment schedule, maintenance obligations and any other fees.

Define the lease term

Define the length of the lease term and renewal options. Ensure that you explicitly state these details in the agreement to prevent misunderstandings. This clarity can save you from potential disputes in the future.

Understand maintenance and repairs

Establish who bears responsibility for maintenance and repairs of the industrial property and include this information in the lease. Knowing your obligations in this regard will help you avoid conflicts with the landlord down the line.

Check insurance requirements

California law may dictate certain insurance requirements for industrial leases. You need to understand what types of insurance you must have to comply with legal regulations.

Address environmental compliance

Industrial properties often have specific environmental regulations to adhere to regarding things like hazardous materials handling a disposal. Ensure that your lease agreement addresses these issues.

Negotiate rent and additional costs

Negotiate the rent and any additional costs associated with the industrial property. Be sure to have a clear understanding of what extra expenses you may be responsible for, like utilities or maintenance fees.

Document property condition

Document the condition of the industrial property before you move in. Take photographs and make a detailed list of any existing damages. This can protect you in case there are any disputes over the security deposit when you move out.

Know local zoning laws

Make sure the industrial property is in the correct zone for your intended use. You should consult with local authorities if you have any doubts.

Leasing an industrial property in California demands careful consideration of various legal aspects. By being thorough, you can protect your interests and have a successful leasing experience.