Renting your warehouse: what you need to know

Why rent your warehouse?

There are several advantages to renting your warehouse. In the long term, it is notably a profitable investment, which can generate income that is both:

• regular;
• and stable.

Moreover, note that the real estate return on this type of property is significantly higher than that generated by renting a residential property (up to 10% more).

In addition, the risk of unpaid rent is relatively low compared to renting a house or apartment. And for good reason, for the tenant company, it is a strategic premises. Then, commercial and professional leases are strictly regulated by law, which guarantees additional security for the owner.

Furthermore, as a landlord, you can request that certain maintenance work be covered, which would allow you to maximize your rental return.

Good to know

There are different types of warehouses that can be rented: refrigerated warehouse, storage warehouse, production warehouse, logistics warehouse, etc.

What type of lease to rent a warehouse?

Depending on the use made of the warehouse, there are two types of leases you can use:

• the common law lease;
• and the commercial lease.

The common law lease

When the warehouse is only operated for the storage of goods or materials, then a common law lease contract can be signed. In this case, the owner and the tenant can freely define the clauses of the contract, and therefore determine:

• its conditions;
• and its duration.

With this type of lease, you thus benefit from a certain flexibility. But be careful, it is important to set clear conditions to protect yourself.

The commercial lease

This type of lease is applicable when part of the warehouse is used for commercial purposes. In this case, the duration of the lease cannot be less than 9 years. However, a commercial lease with a duration equal to or less than 1 year may be authorized, particularly with pop-up stores in full development.

Also note that the commercial lease is subject to very precise rules, particularly regarding eviction compensation. For the owner, this lease has a major advantage: it constitutes a real guarantee of security.

About us

As a professional real estate expert, Allten supports you throughout the rental process, from finding a tenant to negotiating the lease, through managing visits and administrative follow-up. Mastering the local market perfectly, we also help you enhance your property to maximize your return. Contact us today for more information.