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Industrial and Warehouse Leases

By Amy M. Mitchell and Lara Kirkham

When it comes to drafting an industrial or warehouse lease, you may be tempted to assign the work to your newest associate or to wait until the last minute under the assumption it will be straightforward to complete. Do so at your own peril! Although the space being leased is likely a boring tilt-wall box, the variety of potential uses for the building can make an industrial lease extremely complex. Under-negotiation of the lease by either landlord or tenant can result in unexpected costs and issues.

This article discusses five areas of industrial leasing that may need special attention during lease drafting and negotiation, depending on the facts at hand: maintenance and repair obligations, installation of specialty equipment, issues related to tax abatement and public financing, premises condition on surrender, and environmental issues. These topics, while hardly all-inclusive, represent general areas of concern where parties can run into unexpected issues, including disputes and litigation, which can be avoided through careful drafting and negotiation.

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