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The lease that you create now with a new tenant in an industrial property is an opportunity to build the property investment to the next level. That means the lease should be carefully considered so it matches the investment plans that you may have.

As an investor you can consult with a good property solicitor who can help you with the ideas and alternatives of lease occupancy and rental structure. A good property agent can help you with a summation of property market conditions and recent results with negotiated leases.

Here are some ideas to help:

1. How long should you lease the property? That is a question you should answer before the tenant negotiates for a lease term and or an option for additional years of occupancy. There is nothing more frustrating in having a tenant in occupancy and a property that needs extensive renovation. It can be a very difficult task to renovate a property around a tenant in the premises.
2. What rental structures should you use? There are the variations of gross and net rent to consider and you want to recover the best market rental possible given the market conditions. The difference between the net and gross rents will be the outgoings for the property, and decisions should be made as to how they are to be recovered. What types of outgoings should be recovered? How will that be done? The initial lease negotiation has to pick up the market rents in either a gross or net rental structure. Does your agent know how to handle that negotiation? More importantly does your solicitor know how to document a comprehensive lease structure for the benefit of the landlord?
3. Market rentals are always changing. What are the levels of market rent currently in the local area? How can you protect the rent structure of the lease to remain at some level of parity with the current market rental?
4. Rent review structures can vary and on that basis decisions can be made by a landlord to set up the ideal rent review structure to take the asset forward.
5. Renovation obligations are useful in longer lease terms. There are also special make good conditions that can be imposed on a tenant in a lease that can return the property to the landlord at the end of the lease in a renovated condition.

The idea here with all of these things is for the landlord to make the decisions. Prepare your thoughts for a high quality lease and a good tenant. Find an experienced local industrial property agent to help with the tenant selection process.