Renting an industrial warehouse is not just another transaction. It's an operational and strategic decision that directly impacts your production capacity, distribution, logistics, and profitability.
From my experience advising local and multinational companies on expansion and industrial relocation processes in the Dominican Republic, I can say with certainty that the most costly mistakes are usually made before signing a contract… even before visiting the first warehouse.
Here's a real, practical, and up-to-date guide on what every company should consider before leasing its next industrial space.
1. Winning companies involve their teams from day one.
Smart decision-making involves all relevant stakeholders. Companies that set up successful operations align the following from the outset:
• Human Resources: Evaluates accessibility for employees, transportation routes, and break areas.
• Production: Defines machinery flows, ventilation, noise levels, and safety.
• Technology: Reviews connectivity, automation, and servers.
• Procurement: Evaluates costs, contracts, and fit-out suppliers.
• Legal: Reviews exit and entry contracts and contractual risks.
This approach avoids operational errors, rework, and cost overruns.
2. Location: Logistics, Efficiency, and Strategic Proximity.
Location is not measured solely by the price per square meter. Evaluate:
• Proximity to ports, airports, suppliers, customers, or distribution centers.
• Access routes for trucks and heavy vehicles.
• Availability of skilled labor.
• Perimeter security and surrounding environment (industrial vs. residential).
• Potential for future expansion within the same park or area.
3. Thoroughly Evaluate the Property's Technical Specifications
Before making a decision, ensure the property meets your operational technical requirements:
• Adequate ceiling height (minimum 7-12 m depending on use).
• Floor strength (important for heavy loads and racking).
• Loading docks and levelers. •
Lighting, ventilation, and office/showroom conditions.
• Installed electrical capacity, water well, and generator.
• Fire protection system, security booth, and industrial zoning.
4. Calculate the Total Installation and Move-In Costs
The rental fee is only part of the cost. Include the following in your analysis:
• Cost of moving machinery and furniture.
• Hiring architects, engineers, and a project manager.
• Municipal or sector-specific permits.
• Permitted remodeling hours in the park or zone.
• Purchase, reuse, or donation of existing equipment.
5. Verify the physical and legal status of the property before renting.
This step, which many overlook, can prevent major problems:
• Verify that the property is in optimal physical condition to operate or adapt.
• Ensure that the owner has a clear title, approved land use, and current permits.
• Confirm that they have the legal authority to sign contracts.
• Check for any litigation, hidden mortgages, or legal encumbrances that could affect your operation.
Physical and legal due diligence is part of responsible corporate governance.
6. What are you renting? Shell, finished, or turnkey?
• Shell: Empty structure without finishes. • Finished: Includes flooring, ceilings, and basic bathrooms.
• Turnkey / Plug & Play: Fully equipped space according to your specifications.
Many landlords are willing to negotiate improvements if a long-term lease is established.
7. Who pays for what? Tenant improvement vs. Tenant allowance
• Tenant improvement: the tenant pays for their improvements.
• Tenant allowance: the landlord finances the improvements and recoups the cost through rent.
This point must be defined before signing, along with deadlines, conditions, and guarantees.
8. Plan ahead 3, 5, or 10 years
• Do you plan to grow soon? Is there adjacent space available?
• Does your contract allow for expansion or relocation within the same park?
• Do you have enough parking spaces now and in the future?
Negotiate preferential rights or programmed growth clauses.
9. Review your current and new contracts carefully
. • What are the conditions for leaving your current property?
• What improvements can you remove or must you keep?
• What penalties apply for early departure?
In the new contract, make sure to cover:
✔️ Rent, annual adjustment
✔️ Services, maintenance, insurance
✔️ Minimum term, grace period
✔️ Flexibility for renewal or termination
In short:
Renting an industrial warehouse isn't just about square footage and price. It's a high-impact business decision.
The most efficient companies plan ahead, involve their key teams, validate their investment, and work with expert advisors.
