Commercial/Light Industrial Tenant Screening

[Ken C.]

I am looking for someone who can share their experience in finding tenants for units in a light industrial building. Each unit is approximately 1800 to 2100 sq ft. How do you vet a business tenant vs a residential tenant? These units typically appeal to owner-operator type businesses - machine shops, home remodeling, etc., so were are typically renting to an individual, not a "business".

Do you request a credit and background check of the potential lessee for light industrial rentals? It seems like stating in the  "property for rent" ad that the checks will be done could be be useful. Those that have something in their background that would turn up in a background or credit check, would not bother inquiring about renting the space, saving the property owner the trouble of screening a potential problem tenant.

[Gabriel Graumann]

@Ken C. Check and verify EVERYTHING. Even after 17+ years in commercial leasing and brokerage, for our properties and clients, I check everything there is to check when screening prospective tenants. Credit, background, SOS for corporations & entity searches, bond, insurance, and references from clients and past landlords (2-3 deep if possible...because the most recent one will give a good reference just to get rid of a trouble tenant). Also, if it's a sole member LLC or similar entity, I'm checking the spouse and partner background and tenant as I may end up working with these people and want to know who I'm dealing with. Cost for all of this is on the tenant, and make it high enough to assist in the screening process to weed out tenants you don't want. Finally, before you sign them up go see their current facility to get an idea of how well they keep a space.