The warehouse that looks right on a viewing can still be wrong once you overlay your racking plan, add the outgoings, or discover the power upgrade takes nine months. This is the practical checklist to run <b>before you sign</b> a 5-10 year logistics lease - the questions that catch expensive surprises while you can still walk away.
Verify the physical specs against your operation
- Specs vs racking plan. Overlay your actual racking layout on the column grid and clear height. Confirm the height under the lowest obstruction, not the apex, and that trucks can turn in the aisles.
- Floor loading. Get the floor rating in kN/m² in writing and check it against your racking leg loads and any mezzanine - modern logistics floors are around 50 kN/m² (5 t/m²).
- Docks and yard. Confirm the dock count suits your throughput (roughly one per 1,000 m² for busy distribution) and that the yard is deep enough for your HGVs to reverse and turn.
- Sprinklers. Check the system is ESFR if you plan high racking - insurers may cap your storage height without it.
Model the money properly
- Total logistics cost, not just rent. Model rent plus service charge, property tax, racking, fit-out, power upgrade and transport cost from this location - a cheaper unit further from the motorway can cost more all-in.
- Triple-net check. Confirm exactly what the service charge covers and get a cap on it; the headline rent is not the all-in cost. See the rent guide.
- Indexation. Check how the rent rises each year and negotiate a cap (often 3-4%) so a 10-year lease cannot run away with inflation.
- Incentives in writing. Confirm rent-free months, contributions and the exact date the rent-free period runs from - see negotiating a warehouse lease.
Catch the deal-breakers early
Permitted use / planning — Confirm the planning or permitted use covers your activity (storage, light industrial, distribution, any process) and any HGV movement or hours restrictions on the estate.
Expansion land — Ask whether there is adjacent land or a unit you could take later. Outgrowing a warehouse mid-lease with nowhere to expand is a costly, common trap.
Power upgrade lead time — If you need more power for automation or chargers, get the grid upgrade lead time in writing - it can run 3-9 months and often gates your go-live date.
ESG / BREEAM — Check the building's BREEAM or energy rating; it affects running costs, some corporate lease policies, and future lettability if you assign the lease.
Dilapidations — Understand what condition you must return the unit in at lease end - reinstating racking, floors or a mezzanine can be a large hidden exit cost.
Before you sign - the one-line summary
Sign only when the specs match your racking plan in writing, the total occupancy cost is modelled (not just the headline rent), the service charge and indexation are capped, permitted use and power are confirmed, and you know your expansion and exit position. If you cannot tick all of these, keep looking - start a brief and let the platform surface units that actually fit.
