What to carry into the decision
- Turn operating requirements into measurable pass, fail and verify criteria before touring.
- Keep listing claims, official-source observations and professional findings separate.
- Confirm area measurement, loading, power, zoning, access and landlord work in source documents.
- Assign every open diligence item an owner, due date and evidence requirement.
Define the operating envelope before evaluating buildings
Document the needed warehouse and office area, clear height, bay dimensions, dock and drive-in loading, trailer movement, yard, parking, power, floor loading, crane needs, ventilation, fire protection, access hours and employee or customer requirements. Separate true must-haves from preferences.
Describe the intended use precisely enough for the property and legal teams to assess it. A broad label such as warehousing may not capture manufacturing processes, outdoor storage, hazardous materials, food handling, vehicle activity or customer-facing components.
Verify the physical and regulatory facts
Inspect the premises and site with appropriate professionals. Confirm measurements, door sizes, clear height, power service, roof and building-system condition, drainage, access, turning movements and the scope of any required work. Plans and listing brochures are useful evidence but may not reflect current field conditions.
Review the intended use, permits, licences and occupancy requirements with qualified advisers and the applicable authorities. Official open-data searches can surface relevant observations, but a missing record is not proof that no issue or approval exists.
| Workstream | Evidence to seek | Decision output |
|---|---|---|
| Premises | Plans, measurement, field inspection | Area and layout verified or variance recorded |
| Loading/site | Door schedule, site plan, truck test | Operating movement confirmed |
| Power/systems | Service information and qualified inspection | Capacity and upgrade responsibility defined |
| Use/approvals | Zoning and permit review | Use path and conditions identified |
| Environmental | Prior reports and scoped professional advice | Required investigation and allocation identified |
Connect building deficiencies to the lease model
Translate required landlord work, tenant improvements, utility upgrades, racking, equipment connections, yard work and move costs into the economic comparison. A low rent can be overwhelmed by capital required to make the premises operational.
Separate landlord work value from the TI allowance and tenant capital to avoid double counting. Model timing risk where delayed possession or construction could create overlap rent, storage, temporary operations or lost production.
- Additional-rent budget and reconciliation history
- Maintenance, repair and replacement allocation
- Utilities and demand charges
- Snow, yard and exterior obligations
- Restoration and surrender requirements
- Insurance requirements and operational availability
Convert open questions into conditions and tasks
Each material uncertainty needs an owner, evidence source, target date and decision consequence. Some items may be addressed through a non-binding business condition, others through legal drafting, professional inspection, landlord work or an internal approval. The checklist should reflect the actual property and use rather than pretending one template is complete.
Before closing the Deal Room, retain the executed lease, final plans, work letters, approvals and key operating contacts. Record which items were completed, expressly waived or carried forward as post-execution obligations.
Frequently asked questions
What should be checked before signing an industrial lease?+
The scope depends on the property and use, but it commonly includes area, loading, site access, power, building systems, intended use, permits, environmental requirements, additional rent, insurance, landlord work and tenant capital.
Can municipal open data verify that an industrial use is permitted?+
No. Open data can provide useful observations, but the intended use and approval path should be confirmed with the applicable authority and qualified advisers.
Which industrial building standard determines rentable area?+
The lease and its stated measurement basis control the commercial obligation. BOMA publishes property-type measurement standards, but the applicable basis and actual measurement should be confirmed for the premises.
Primary references
These links support narrow factual points in this guide. They do not replace review of the proposal, executed lease or advice for the actual transaction.
BOMA — floor measurement standards ↗Standards overview for office, industrial, retail and other commercial building measurements.This guide is general educational information and financial-workflow support. It is not legal, tax, accounting, engineering, environmental, appraisal or brokerage advice. Verify source documents and obtain appropriate professional advice before acting.