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FAQs – Frequently Asked Questions About Industrial Warehouse Space In Denver

Below are the most common questions we get about leasing warehouse space in metro Denver. You may also visit our Glossary page for explanations of some commonly used industrial real estate terms. Please call our office and one of our industrial real estate and warehouse specialists will be happy to answer any questions you might have – 303-295-2525.

  1. What do the terms net lease, triple net lease, gross lease or modified gross lease mean?
  2. How long a lease do I have to sign?
  3. Will the Landlord remodel the space for my needs? 
  4. How much is a typical security deposit for warehouse space in Denver?
  5. What does CAM mean and what is included?
  6. Who pays for maintenance and repairs to the space itself?
  7. Who pays for repairs to the heating and cooling systems?
  8. Who pays for utilities?
  9. Who is responsible for security?
  10. How much does warehouse space cost in Denver?
  11. Will my rent be a flat rate or will it increase over the term of the lease?
  12. Is warehouse space cheaper in areas outside of Denver like Aurora, Montbello, Lakewood? Is being near the airport or near a major highway more expensive?
  13. What is dock high or drive in loading? And do I have to choose between one or the other?
  14. Do all warehouse spaces have three phase power?
  15. Is it better to be in a single tenant building or a multi-tenant complex?
  16. Can I run a retail location out of warehouse space?
  17. Is it smarter to lease warehouse space or purchase a building?
  1. What do the terms net lease, triple net lease, gross lease or modified gross lease mean?  For most warehouse space in Denver, these terms mean the following: Net, triple net and NNN are terms that are used interchangeably where the Tenant is responsible for all costs associated with the warehouse space including taxes, insurance, and maintenance. For a multi-tenant building, these expenses are apportioned to the tenants based on their square footage. A gross lease reflects that the Landlord is paying for these costs. Modified gross indicates that the Landlord is paying the costs up to and including the base year (which is the first year of the lease) and the Tenant is paying its share of any increase in costs over the base year. On any type of warehouse lease, the Tenant always pays its own utilities and personal property insurance, and usually its own trash removal.
  2. How long a lease do I have to sign?  Most industrial leases are 3-5 years. Normally, our minimum is 2 years, depending on the property. For any lease less than 3 years, the tenant typically has to take the space in “as is” condition.
  3. Will the Landlord remodel the space for my needs?  Remodeling space for an industrial lease is referred to as tenant improvements or TI’s. The amount of tenant improvement the landlord is willing to do depends on the length of the lease, the credit-worthiness of the tenant, the price per square foot, and the nature of improvements.
  4. How much is a typical security deposit for warehouse space in Denver?  Most industrial landlords require a security deposit equal to the amount of the last month’s rent and NNN charges.
  5. What does CAM mean and what is included?  CAM stands for Common Area Maintenance and refers to all the costs of maintaining the common areas include snow removal, parking lot cleaning, parking lot repairs, landscape maintenance, parking lot lighting, exterior building lighting, roof repairs, water and sewer (unless separately metered) etc. Although not technically correct, often landlords, tenants and leases refer to CAM charges to mean common area maintenance and taxes and utilities, lumping all three together in the convenient term “CAM.”
  6. Who pays for maintenance and repairs to the space itself? Industrial leases in Denver can vary widely, but usually the landlord takes care of the exterior, roof, and building structure (sometimes, but not always billed back as CAM charges) and the tenant is responsible for everything on the interior of the premises, including electrical, plumbing, HVAC (including the rooftop unit), utilities, etc., as well as plate glass. There are exceptions to this, so be sure to read your lease to understand who is responsible for what.
  7. Who pays for repairs to the heating and cooling systems?  With most Denver warehouse leases, the tenant is responsible for HVAC repairs. There is sometimes an exception if a unit (rooftop or hanging heater) needs to be completely replaced. This is the “trickiest” part of a lease. A heating and air conditioning unit serving the office area can cost between $4,000 & $6,000 to purchase and install.
  8. Who pays for utilities?  The tenant is always responsible for its own utilities including heat, light, gas, electrical, phone, internet, etc. In a single tenant building, the tenant is also responsible for water, sewer and storm drainage. In a multi-tenant building, water, sewer and storm drainage costs  are paid in CAM and apportioned on the basis of square footage.
  9. Who is responsible for security? Security is the tenant’s responsibility.
  10. How much does warehouse space cost in Denver? There is a wide range of pricing for industrial space in Denver depending on location, type of space, size and features, so it’s almost impossible to answer this question.  Please call and we’ll be happy to quote you some specific rates – 303-295-2525. Tip: to calculate how square foot price translates to monthly rent, multiply the price by the square footage and divide by 12. For example:  5000 sf x $4.50 psf = $22,500 ÷ 12= $1875.00 per month.
  11. Will my rent be a flat rate or will it increase over the term of the lease? Most industrial leases will have annual base rent increases over the length of the lease. Sometimes increases are a set dollar amount and sometimes they are tied to the Consumer Price Index (CPI).
  12. Is warehouse space cheaper in areas outside of Denver like Aurora, Montbello, Lakewood? Is being near the airport or near a major highway more expensive? There is a range of prices for industrial space in every area. Let us know what area you are looking in and we’d be happy to provide you with some information about pricing options and available space. 303-295-2525.
  13. What is dock high or drive in loading? And do I have to choose between one or the other? Dock high is an overhead door at the height of a semi truck bed so that a truck pulls up and loads or unloads at truck level. Drive in means the overhead door is at ground level. Most warehouse spaces provide one or the other, but there are many that provide both.
  14. Do all warehouse spaces have three phase power?  The majority do, but not all, so ask about your power needs at the time you call to inquire about space.
  15. Is it better to be in a single tenant building or a multi-tenant complex? The advantage to being in a single user building is that outside storage or yard space is an option, which you typically can’t find in multi-tenant buildings or complexes.
  16. Can I run a retail location out of warehouse space?  Typically the answer is yes, but each municipality has its own regulations and limitations governing retail sales in industrial zoning. For example, in Denver, 20% of your floor space can be used for retail sales. If retail sales are part of your business, ask about this upfront when looking at industrial space.
  17. Is it smarter to lease warehouse space or purchase a building?  The answer to this question depends on a number of important factors and can’t be answered in a general way. Call us to discuss your needs and options – 303-295-2525.

Questions? Ask away.