If you are planning on buying a commercial building or leasing commercial real estate Austin you will more than likely need to do some sort of construction and/or tenant improvements. Whether it’s office, retail or warehouse space, if it’s located within the City of Austin, and depending on the scope of work, you or your contractor will probably be required to pull a permit before getting started. Services City of Austin Building Permits Provides
When is Permit Required in Austin?A building permit in Austin is required to construct, erect, alter, enlarge, improve, repair, convert, remove, demolish, or move any structure or building within the City’s zoning jurisdiction or in particular MUDs (Municipal Utility Districts). The permit can be Before a permit is issued all building plans must be reviewed by Residential or Commercial Building Plan Review. Depending on the scope of work a trade permit (e.g. mechanical, electrical, plumbing, irrigation) may also be required. To determine whether or not your project needs a permit call (512) 978-4000 What Type of Commercial Work Does Not Require a Permit?An Austin building permit is not required for the following commercial work, however you still must comply with applicable city codes, building codes, etc. To see the full list and details of commercial work in Austin not requiring permit click here. Building
Electrical
Mechanical
Plumbing
What Happens During Construction and After Permitted Work is Completed?Depending on the scope and type of work that was permitted an inspection will be required during construction. After the work is fully completed whoever a final inspection must be performed. The inspection scheduling is the responsibility of the permit holder. This can be initiated by a licensed contractor, homeowner if listed at general contractor on permit, official agents registered under contractor, or a master trade contractor. When Do Permits Expire?Permits are only active for 180 days. On the 181st day the permit will expire if a project has not received any inspections. If you let the permit expire this must be resolved before they city will issue a new permit. To check if your property has an expired permit call (512) 978-4000. City of Austin Permit SearchThe Austin permit search tool allows the public to do searches for permits, plan reviews, inspections, and the status of those permits/cases. You can also view issued construction permits and the online user manual for public search assistance. The city of Austin provides this tool so registered users can apply for permits online, pay for permits, schedule inspections, apply for right of way permits and assign permits.
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In most cases when leasing warehouse or retail space tenants are responsible for the maintenance, repair, and replacement (if needed) of the heating, ventilation, and air conditioning (HVAC) units. Before renting commercial space you need to make sure that you know how old the units are and how they have been maintained over the years or you will end up paying for costly repairs that were not caused by you. Below we will go into more detail as to why. What Does HVAC Stand For or Mean?HVAC stands for heating, ventilation, and air conditioning. In most states that experience extreme heat and cold HVAC is common in residential properties such as apartments and single family homes, hotels, senior living facilities, apartment buildings, commercial properties such as office, retail, and industrial space, etc. How Long do Commercial HVAC Systems Last?The life expectancy of commercial hvac units is typically 15 to 20 years however depends on a number of factors such as:
Average Lifespan of HVAC Components
How Much Does it Cost to Replace an HVAC System per Unit?The average cost can range from $4,500 to $5,000 however that depends on the size of the space you are trying to heat and cool. For example if you are trying to cool a 1200 sf space you might need a 2 ton unit. A 5,000 sf space might need a 5 ton unit. For larger commercial spaces expect to pay anywhere from $4,500 to 10,000 for each hvac unit being replaced. Replacing HVAC units can be costly upfront however your roi will be tremendous. When all the units are of similar age the entire system within the premises is more reliable and efficient, which means you can worry less about repairs costs. Why Worry About HVAC Units When Leasing Warehouse Space?When your leasing industrial space such as warehouse space Austin or office/warehouse space you most likely will be responsible for 100% of the repair, maintenance, and replacement (if needed) all all the HVAC units that service your space. That is because those units ONLY service your space an no others as you see with traditional office space. If the units die or need repair you have to pay for those costs no matter how old or bad the units are. Because of this you have to make sure that you don’t sign a lease until you know all the important details about the HVAC units such as:
During the negotiations ask the landlord to have all of the HVAC systems inspected, maintenanced, and repaired or replaced if needed before you take occupancy. You may also ask for a warranty for the first year or two. If the units are newer ask if their is any remaining manufacturer warranty. If the systems are older and close to the lifespan of 10-15 years then you definitely want to get some sort of warranty or CAP on any hvac expenses. You have to keep in mind that an old unit will need more repairs than newer ones. Also, your utility bills will be higher because the older units are less efficient. At the end of the day if the landlord is asking you to take over the maintenance and repairs of HVAC units that are at or over the typical life expectancy you need to stand your ground and negotiate to have them take most of the responsibility………….or go find another space.
via Blogger Lifespan of Commercial Heating Ventilation Air Conditioning Units In most cases when leasing warehouse or retail space tenants are responsible for the maintenance, repair, and replacement (if needed) of the heating, ventilation, and air conditioning (HVAC) units. Before renting commercial space you need to make sure that you know how old the units are and how they have been maintained over the years or you will end up paying for costly repairs that were not caused by you. Below we will go into more detail as to why. What Does HVAC Stand For or Mean?HVAC stands for heating, ventilation, and air conditioning. In most states that experience extreme heat and cold HVAC is common in residential properties such as apartments and single family homes, hotels, senior living facilities, apartment buildings, commercial properties such as office, retail, and industrial space, etc. How Long do Commercial HVAC Systems Last?The life expectancy of commercial hvac units is typically 15 to 20 years however depends on a number of factors such as:
Average Lifespan of HVAC Components
How Much Does it Cost to Replace an HVAC System per Unit?The average cost can range from $4,500 to $5,000 however that depends on the size of the space you are trying to heat and cool. For example if you are trying to cool a 1200 sf space you might need a 2 ton unit. A 5,000 sf space might need a 5 ton unit. For larger commercial spaces expect to pay anywhere from $4,500 to 10,000 for each hvac unit being replaced. Replacing HVAC units can be costly upfront however your roi will be tremendous. When all the units are of similar age the entire system within the premises is more reliable and efficient, which means you can worry less about repairs costs. Why Worry About HVAC Units When Leasing Warehouse Space?When your leasing industrial space such as warehouse space Austin or office/warehouse space you most likely will be responsible for 100% of the repair, maintenance, and replacement (if needed) all all the HVAC units that service your space. That is because those units ONLY service your space an no others as you see with traditional office space. If the units die or need repair you have to pay for those costs no matter how old or bad the units are. Because of this you have to make sure that you don’t sign a lease until you know all the important details about the HVAC units such as:
During the negotiations ask the landlord to have all of the HVAC systems inspected, maintenanced, and repaired or replaced if needed before you take occupancy. You may also ask for a warranty for the first year or two. If the units are newer ask if their is any remaining manufacturer warranty. If the systems are older and close to the lifespan of 10-15 years then you definitely want to get some sort of warranty or CAP on any hvac expenses. You have to keep in mind that an old unit will need more repairs than newer ones. Also, your utility bills will be higher because the older units are less efficient. At the end of the day if the landlord is asking you to take over the maintenance and repairs of HVAC units that are at or over the typical life expectancy you need to stand your ground and negotiate to have them take most of the responsibility………….or go find another space.
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from Twitter https://twitter.com/AustinTenantAdv via Blogger stephanie thanks for following me on Twitter! https://t.co/SMPnUWYNWN Warehouse and Industrial space can range from storage and manufacturing to distribution. Each Industrial property you consider will have it’s own requirements and obligations so make sure you understand the use of the facility and ask the owner, landlord, and listing agent lots of questions to ensure the space meets your needs. Below are a few things you should consider when leasing Warehouse or Industrial space: Heating, Ventilation, and Air Conditioning (HVAC) – The majority of Industrial buildings are not delivered with full building HVAC. If they choose to have it each tenant is responsible for the installation of their own HVAC unit. In a lot of cases you end up leasing a space that was previously leased by someone else and they had installed and used an HVAC unit. Because you don’t know if that tenant properly maintained the unit try to avoid assuming responsibility of a potentially neglected unit. Negotiate with the landlord that you will pay for an HVAC maintenance contract to keep the existing HVAC unit property maintained, however if the unit needs a major repair or replacement the landlord should be responsible. Before signing the lease always require that the landlord have the HVAC units inspected and repaired (if needed) and certified in writing that they are in good working condition by a certified HVAC technician. Operating Expenses (aka NNN) – Make sure you understand what is and what is not included in the operating costs and what can be excluded (e.g. roof repairs). Operating costs typically include taxes, insurance, and maintenance. You need to know what the landlord is going to pay for and what you will be responsible for. Square Footage – Some landlord calculate the square footage differently. Make sure you know how they are doing their calculations and what they are including. Ideally you only want to pay for your usable square footage which is the actual space you occupy. Some landlords will try to include the area beneath the buildings drip lines and some will choose to calculate from the outside of the wall vs the middle or inside. Parking Area – Parking lots require maintenance (asphalt or concrete) and some landlord’s try to make the tenants pay for that. Repairs and maintenance should be the landlord’s responsibility because is a long term expense and part of future property value calculations. What is the use of the parking? Who will be using it the most? Do you need to be able to park trucks or vehicles overnight? If so make sure you have the ability to. Zoning – Make sure the Industrial or warehouse property is zoned for your intended use. Some retail tenants (e.g. martial arts) like the idea of leasing an industrial property because the lease rates are cheaper than retail. However if the property is not zoned for retail use they will not be able to lease it……unless they or the landlord is willing to apply for a zoning change. You also want to make sure the buildings parking ratio (spaces per 1000 sf) is sufficient for you. If you need more then consider another building or look at retail space. Maintenance of the property – Make sure you know what the landlord is responsible for and what you will be responsible for. Trash will typically be at your expense. Loading areas – Will you have products delivered or picked up via 18 wheeler or UPS type trucks? If so then you will need dock high loading and a truck court big enough for 18 wheelers to maneuver. Do you need the ability to drive trucks or other vehicles into the warehouse? If so then you need grade level loading. Whatever the case make sure you ask if the Industrial property has what you need or if the landlord is willing to install what you need. Trailers and trucks used to be 45 ft +/- however these days they are 60 ft +/-. What that means is you need at least a 120′ turning area. Older Industrial properties may not be able to accommodate this. Electric – Make sure the Industrial properties have electrical power sufficient for your needs. Do you need 3 phase power? If you or the landlord does not know what is available then hire an electrician or electrical engineer to evaluate the building. You want to make sure the building has sufficient amperage and power so you don’t blow transformers or find out it’s underpowered later on. Ceiling Height – Make sure you ask how high the ceilings are. If you plan on stacking products or equipment or operating large equipment you want to make sure you know how high you can go. Heights typically range from 18 ft to 25 ft Expansion options – Ask the landlord if any adjacent tenants have renewal options. If you plan on expanding later on it would be nice to know if you have the ability to do so. If your neighbors have an expansion option on your space then negotiate to have the landlord move you at the landlords cost. Floor Load – What is the floor load for the concrete slab vs what your intended use will be? These are just a few things you should carefully evaluate before signing an Industrial or Warehouse lease. If you have any questions about industrial space for rent in Austin or would like to discuss with us don’t hesitate to contact us!
Related Images:[See image gallery at www.austintenantadvisors.com]via Tumblr 11 Important Tips When Leasing Warehouse Space Warehouse and Industrial space can range from storage and manufacturing to distribution. Each Industrial property you consider will have it’s own requirements and obligations so make sure you understand the use of the facility and ask the owner, landlord, and listing agent lots of questions to ensure the space meets your needs. Below are a few things you should consider when leasing Warehouse or Industrial space: Heating, Ventilation, and Air Conditioning (HVAC) – The majority of Industrial buildings are not delivered with full building HVAC. If they choose to have it each tenant is responsible for the installation of their own HVAC unit. In a lot of cases you end up leasing a space that was previously leased by someone else and they had installed and used an HVAC unit. Because you don’t know if that tenant properly maintained the unit try to avoid assuming responsibility of a potentially neglected unit. Negotiate with the landlord that you will pay for an HVAC maintenance contract to keep the existing HVAC unit property maintained, however if the unit needs a major repair or replacement the landlord should be responsible. Before signing the lease always require that the landlord have the HVAC units inspected and repaired (if needed) and certified in writing that they are in good working condition by a certified HVAC technician. Operating Expenses (aka NNN) – Make sure you understand what is and what is not included in the operating costs and what can be excluded (e.g. roof repairs). Operating costs typically include taxes, insurance, and maintenance. You need to know what the landlord is going to pay for and what you will be responsible for. Square Footage – Some landlord calculate the square footage differently. Make sure you know how they are doing their calculations and what they are including. Ideally you only want to pay for your usable square footage which is the actual space you occupy. Some landlords will try to include the area beneath the buildings drip lines and some will choose to calculate from the outside of the wall vs the middle or inside. Parking Area – Parking lots require maintenance (asphalt or concrete) and some landlord’s try to make the tenants pay for that. Repairs and maintenance should be the landlord’s responsibility because is a long term expense and part of future property value calculations. What is the use of the parking? Who will be using it the most? Do you need to be able to park trucks or vehicles overnight? If so make sure you have the ability to. Zoning – Make sure the Industrial or warehouse property is zoned for your intended use. Some retail tenants (e.g. martial arts) like the idea of leasing an industrial property because the lease rates are cheaper than retail. However if the property is not zoned for retail use they will not be able to lease it……unless they or the landlord is willing to apply for a zoning change. You also want to make sure the buildings parking ratio (spaces per 1000 sf) is sufficient for you. If you need more then consider another building or look at retail space. Maintenance of the property – Make sure you know what the landlord is responsible for and what you will be responsible for. Trash will typically be at your expense. Loading areas – Will you have products delivered or picked up via 18 wheeler or UPS type trucks? If so then you will need dock high loading and a truck court big enough for 18 wheelers to maneuver. Do you need the ability to drive trucks or other vehicles into the warehouse? If so then you need grade level loading. Whatever the case make sure you ask if the Industrial property has what you need or if the landlord is willing to install what you need. Trailers and trucks used to be 45 ft +/- however these days they are 60 ft +/-. What that means is you need at least a 120′ turning area. Older Industrial properties may not be able to accommodate this. Electric – Make sure the Industrial properties have electrical power sufficient for your needs. Do you need 3 phase power? If you or the landlord does not know what is available then hire an electrician or electrical engineer to evaluate the building. You want to make sure the building has sufficient amperage and power so you don’t blow transformers or find out it’s underpowered later on. Ceiling Height – Make sure you ask how high the ceilings are. If you plan on stacking products or equipment or operating large equipment you want to make sure you know how high you can go. Heights typically range from 18 ft to 25 ft Expansion options – Ask the landlord if any adjacent tenants have renewal options. If you plan on expanding later on it would be nice to know if you have the ability to do so. If your neighbors have an expansion option on your space then negotiate to have the landlord move you at the landlords cost. Floor Load – What is the floor load for the concrete slab vs what your intended use will be? These are just a few things you should carefully evaluate before signing an Industrial or Warehouse lease. If you have any questions about industrial space for rent in Austin or would like to discuss with us don’t hesitate to contact us!
Related Images:[See image gallery at www.austintenantadvisors.com]via Blogger 11 Important Tips When Leasing Warehouse Space Leasing industrial or warehouse space will be one of your biggest operating expenses so before you sign on the dotted line it’s important to ensure that the warehouse space will meet your business needs and that you know who is responsible for what. For example when negotiating Austin warehouse space for lease tenants are typically responsible for the repair and maintenance of the HVAC units. Your needs are more than likely different than the next company, however below are a few questions (based on your needs) that you should get the answers to (in writing) before signing a lease.
via Blogger Questions To Ask Landlord Before Leasing Industrial & Warehouse Space |
AuthorThe experienced commercial realtors at Austin Tenant Advisors specialize in representing the best interests of buyers and tenants in the Search, Selection, Negotiation, and Occupancy of Office, Retail, Industrial & Warehouse Space for lease, rent, or sale in and around Travis, Williamson, Hays, Bastrop, & Burnet Counties, which are the 5 largest counties in Central Texas. We serve the surrounding cities such as Pflugerville, Round Rock, Georgetown, Leander, Cedar Park, Lakeway, Bee Cave, Sunset Valley, Dripping Springs, Buda, Kyle, San Marcos, Burnet, Marble Falls, and more. Archives
November 2020
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