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Frequently Asked Questions
For Leasing
Q.
What's the first step for leasing a warehouse or office?
A.
You should understand your needs, such as warehouse size, locations, ceiling height or budget...etc., so the CUPS' agent can efficiently provide you an ideal warehouse list.
Q.
What're the most common types of leasing warehouses?
A.
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Industrial Gross(IG) : The rent include property tax and insurance; however, it always depends on contract. Normally, tenants have to pay common area charges(CAM fee), electricity and utility.
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Triple Net(NNN) : Tenants pay = base rent + property tax and insurance + CAM fee.
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Modified Gross(MG) : It's the mix of two types above, and it's most convenient way to both landlord and tenant. All the fee and responsibilities will based on the negotiation between tenant and landlord.
Q.
A.
What's the process for leasing warehouses?
Understand your needs ---- Contact CUPS ---- Get Quote from CUPS ---- Tour with Our Agents ---- Make Offer ---- Sign Contract
Q.
What documents you should prepare for leasing warehouses?
A.
Normally, at least Two-year Tax Return*, latest Three-month Bank Statement*, Year to Date Profit & Loss* and Year to Date Balance Sheet* are the most common documents required by landlord.
Q.
How are rents adjusted annually?
A.
Depending on landlord, the rent is adjusted annually approximately 3%-5%*. CUPS Realty will always help you negotiate with landlord.
Q.
Do the warehouse have abate rate?
A.
Abate Rate is depend on the demand in the market. When the demand is increased, abate rate will be shorter. Normally, three-year lease would have one-month abate rate* and five-year lease would have one-month abate rate*.
Q.
How much the deposit is when leasing warehouses ?
A.
The deposit of leasing warehouse is depend on your financial statement. Usually, landlord will require six-month deposit* for a new company.
Q.
A.
What's the requirements about insurance for leasing warehouses?
Liability Insurance is the most common and fundamental insurance requirement from landlords .
For Subleasing
Q.
A.
What sublease means?
Subleasing a commercial space is an independent agreement between a tenant(Sublessor) who already holds a leasehold on a commercial property and another party who wants to occupy part or all of that commercial property (Sublessee).
Q.
A.
What's the process for subleasing a warehouse to subleassor?
Refer to your Commercial Lease Agreement to confirm the property can be subleased ---- notify the landlord ---- find a tenant ---- draft a commercial sublease agreement and get the landlord's consent ---- sign a commercial sublease agreement ---- sublet ( as a sub-landlord )
Q.
A.
What's the process for subleasing a warehouse to sublessee?
Consult CUPS agent ---- The CUPS' agent starts searching ideal warehouse for you ---- Tour with our agent ---- Make offer -> Sign Contract ---- Get a key
Q.
What's the advantages for subleasing a warehouse to sublessee?
A.
1. Sublease is relatively flexible for financial report, deposit requirements, lease term and other documents.
2. Suitable for start-ups or small businesses. It's easier to find different warehouse sizes in the sublet market.
3. Lease term is shorter and more flexible. Compare with general lease, subleasing usually has a shorter lease term, typically, 1 to 3 years or even as short as few months*.
Q.
A.
What's the diadvantages for subleasing a warehouse to sublessee and sublessor?
1. Unfavorable terms may carry over to the sublessee's contract, so it's highly recommended to have a lawyer review before
signing sublease and original lease to guarantee your rights.
2. Sublessor may face to uncontrollable factors; for instance, sublessee default.
3. Repairs may be delayed. If you need to repair the property or other services provided by the landlord, you may still need to go to sublessor first.
For Sale
Q.
What do you need to prepare if you want to purchase a real estate property in the U.S.?
A.
You will need to provide proof of downpayment and pre-approval letter from your mortgage lender to your real estate agent. If you pay in cash, you should provide proof of downpayment to show that enough fund to buy.
Q.
What is minimum down payment on commercial property?
A.
For a traditional commercial mortgage, the minimum down payment varies are between 15% to 35%* of the overall purchase price but it depends on the lender. With SBA 7(a) and CDC/SBA 504 loans, the range is more standardized, falling between 10% and 15%* of the purchase price.
Q.
What is considered as commercial property?
A.
office/ office building, multifamily above 5 units , hotel, retail/ plaza, industrial building/ warehouse, special purpose buildings.
Other Questions
Q.
Why choose CUPS Realty?
A.
CUPS will assist you during entire process to solve any problems you faced and directly help you negotiate with landlord. Additionally, we provide customer services after move-in warehouse to our clients.
Q.
What advantages CUPS Realty possess?
A.
CUPS has strong knowledge and experiences in third-party logistic(3PL), so we deeply understand requirements and expectation from our clients when they're looking for warehouses. We not only provide real estate services in rental, development and investment, but also provide additional services, such as professional specialist referral and business advertising. Our business covers California, Texas and New Jersey. In other words, we cover all your needs when you plan to expand your business in the U.S.
All the information marked with "*" is for reference only.
Lease
Sale
Sublease
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