If you don’t have any plans of owning a modular building as of now, you can either rent or lease one. But if you want some flexibility to buy the same property after using it for a while, leasing the building would be a better option. Currently, there are several modular construction projects across Canada that you can consider leasing. However, to find the best fit for the purpose, consider the following aspects beforehand.
1) Duration of Use
The first thing you must consider while leasing a modular construction is the duration that you’ll use it for. The lease term has the biggest impact on your research, budget, and leasing process. Although there is no minimum or maximum limit for leasing a commercial modular building, you will have to decide and define the same right at the time of talking to various landlords. The landlords can tell you if the lease will be available for that tenure or not. Generally, the length of the lease for commercial modular office or retail for a larger term will be for five to ten years with one or more option terms usually of one to five years each.
2) Purpose of Use
The purpose of use will help you find the right modular structure in Canada. Whether you wish to take your office in that modular building or want to build a hotel there, you will be able to look for relevant properties that can be used for your purpose. The purpose of use will also help in deciding the size of modular construction you must look for. You may not be sure about the exact size of the building that you’ll need to accommodate your workforce efficiently. To help you determine the best solution, have on hand information about the number of employees who will be working at the location. Consider how much space you’ll require for your staff and other things. Keep in mind the square footage of restrooms, conference rooms, pantries, storage spaces, and other specific areas in mind while determining the space required.
3) Location of Modular Building
The location of the modular construction matters a lot. In most cases, you must consider a site that’s inside or at least close to the main city. Think about your staff, the location should be chosen that is near to your employees’ homes. If the building is located in a remote area, travelling to and from it daily will be hectic. You must stress the accessibility factor. Are the entry and exit points narrow or easy to access? If you use the modular building for regular office purposes, then ensure the entry and exit points are wide enough. But if you’ll use this place as a factory or godown, ensure that there is enough space for machinery and heavy equipment to enter and maneuver easily. Apart from these, you must also ensure that the ground is properly levelled and don’t have any issues that may affect the integrity of your modular construction later. Get rid of any big rocks or grassy patches for easy usability.
Needless to mention, the budget is yet another crucial aspect to consider when leasing a modular building. Before planning to buy or rent a modular building, you must’ve decided on a budget. Consider all the financial options you have – mortgage, loan, and direct money. Look for modular constructions that fit within this budget. If you are looking for a long-term lease option, you must keep in mind that the value of any modular building will increase with time. Keep that future appreciation of value in mind before finalizing a modular building. Never opt for a modular building that hardly fits in your budget, or you may end up facing financial crises regularly.
5) Maintenance Required
Apart from all these, you must also consider the amount of maintenance you’ll require for the modular construction. Firstly, you must understand who will take care of the maintenance costs. Generally, the landlord looks after all the repair and maintenance costs of the property. But, in some cases, the tenant has to pay all the bills. If you are willing to look after these additional and long-term costs, you’ll generally have a lower rental amount.
Secondly, consider the amount of maintenance required. The maintenance required may differ from location to location. Suppose you lease a modular building located close to a sea or ocean, you will have to pay more for maintenance. This is because the electronics and electricals may often fail in buildings that are close to a sea than those located inside the city. Be ready for maintenance and repair costs as per the location you choose.
6) Future Buying Plans
While leasing a modular construction, you must also consider if you have any plans to buy the structure after the current or next lease ends. At some point, if you plan to own a modular building instead of leasing it, you must find owners who are even willing to sell the building to you. A lot of modular construction owners wish to sell the building instead of leasing it after a while. You must find such owners. Talk to all the modular building owners to know what all of them think about the ownership of the structure. Find out if some owners are ready to provide discounts in the lease amount if you commit to buy the building after 1-2 leasing periods. If you bargain, you may get better offers for leasing as well as buying the building in the future.
If you have shortlisted a plot and wish to commence modular construction there, Cormode & Dickson can be your assistance. Right from project planning to pre-engineering construction completion, we do it all as per your requirements.