Encon Commercial focuses exclusively on industrial warehouse space solutions in Los Angeles County and the region’s most active logistics markets. Serving dynamic business hubs like Vernon, Commerce, City of Industry, Gardena, Carson, Long Beach, Santa Fe Springs, and Torrance, our specialists help clients find warehouse, distribution, and logistics properties that align with both current operations and future expansion goals. In these high-demand Los Angeles markets, we give your business an edge—providing access to quality spaces and favorable lease rates through in-depth market insight and local relationships.
If you’re looking for a high-clearance distribution facility, a large-scale logistics center, or a flexible office/warehouse hybrid, our team brings unmatched knowledge of Southern California real estate. We secure the right space for you in every major submarket—including the Inland Empire and Orange County. For up-to-date property listings, trends, and expert insights on the region’s industrial corridors, be sure to visit our news section and connect with our specialists at Encon Commercial.
Tenant Tip: Ask the benefits of buy vs. lease; with rising lease rates over three years and limited availability, purchasing may be the better way to create wealth and protect against inflation and market ups & downs. Ask us how and view our easy to under
stand comparison.
Contrary to popular belief, a “Gross Lease” does not protect the tenant against annual increases in rent, annual increases in taxes after the first year, nor an increase in taxes due to a sale of the property.
Be Aware and Plan Accordingly!
GETTING TO THE DETAILS:
Finding the ideal commercial real estate property to meet all of your specific needs and preferences can be a real challenge, especially in hot markets where the prime spaces go quickly. Once you find that perfect space for your commercial needs, it can be tempting to sign the contract without going through all of the details. Here are a few key details to look for when examining the leasing contract:
UTILITIES RESPONSIBILITIES:
Like residential leases, commercial properties vary in the utility payment agreement. Take care to ensure that you understand what your responsibilities will be in paying for specific utility bills. Commercial leases often use a different set of legal terms to describe the responsibilities, so be sure that you understand the exact meanings of any unfamiliar terms in the agreement.
INSURANCE: In most commercial leases, the landlord does not cover the business equipment of the tenant. For this reason, it is imperative that you understand the coverage provided and take the necessary steps to ensure that you have adequate protection for all of your business equipment and office supplies.
In most commercial leases, the landlord does not cover the business equipment of the tenant. For this reason, it is imperative that you understand the coverage provided and take the necessary steps to ensure that you have adequate protection for all of your business equipment and office supplies.
UNDERSTANDING FEES: When going through the contract, you may find that there are a variety of fees that are not expected and are potential deal breakers. Talking to your future landlord may prove invaluable in negotiating these fees down so that you can put yourself in position to get the best deal.
When going through the contract, you may find that there are a variety of fees that are not expected and are potential deal breakers. Talking to your future landlord may prove invaluable in negotiating these fees down so that you can put yourself in position to get the best deal.
SUBLEASE OPTIONS: Although it is never ideal to have to break a lease, you should know your options if you need to get out of the contract. Every commercial lease contract should have a section clearly detailing your options.
Although it is never ideal to have to break a lease, you should know your options if you need to get out of the contract. Every commercial lease contract should have a section clearly detailing your options.
INSIGHT:
Just a few topics mentioned above that come up in our discussions with you regarding leasing. We can teach you how to have a keen eye to detail and help ensure that you understand all of the parameters of your contract before signing.
Class A buildings vs. B buildings is hard to define, and harder to price. General rule, Class A is new or just renovated, master planned covering all systems and buildout meets codes that are up to date. You will be the first tenant in this new space.
Class B buildings are more difficult to uncover the deficiencies. Generally, structures are one generation older, slightly inferior, passed through several tenants, with systems that need attention with warranties set to expire, and there may be a need to check the latest building codes if there is a plan to add tenant improvements or additional office space. Otherwise, the building is functional for the intended use.
For Class B, look for a price drop off from Class A of ~15%. If you find the drop less than ~15% then Class B is priced too high in the market and negotiating is the way to adjust. Or better yet, simply get that Class A alternative because after all maintaining the building is a cost that tenants cover in most leases.
Ask landlord to provide a warranty in the lease for electrical, mechanical systems and HVAC units for at least for an initial time period. Know that after that time, most costs fall on the tenant. Try all systems upon move-in and document the status, then provide to the landlord for fixes, repairs or replacements. Repeat this process at renewal time as part of your renewal agreenent. Note, systems fail and maintaining these cost intensive items are a part of the negtiating process of leasing and preparing a document to sign. All landlords are different, all buildings are in a different stage and age, which makes warranties ever more important. Don’t miss this opportunity to cost you down the road.
Tenant Tip: In leasing a brand new warehouse, good news is that building warranties exist by the builder for the infrastructure; bad news, you must pull teleconmunication cable thought the office, distribution power in the warehouse, and check internet availability as it may not exist yet for a brand new business park. Which means finding a more expensive alternative that you must pay for in order to get telephones and internet access.
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