A warehouse lease checklist for occupiers in India

Most problems with a leased warehouse can be found before signing. They are missed because the search moves quickly, the brochure is persuasive and nobody owns the checklist. Use this list as the minimum for every building you consider seriously.

1. Title and ownership

• Who owns the land and the building, and is the person signing the lease authorised to do so?
• Is the land on lease from an industrial development authority? If so, does the allotment permit sub-leasing to you, and is the authority's consent needed?
• Is the property mortgaged? If it is, ask how the lender's rights affect your occupation.

2. Land use and approvals

• Does the permitted land use cover warehousing or your intended activity?
• Is there an approved building plan, and does the building as constructed match it?
• Has an occupancy or completion certificate been issued for the building?
• Is there a valid fire NOC, and does it cover the type and height of storage you plan?

3. Building specification

• Clear height under the lowest obstruction, not the height at the ridge.
• Number, height and condition of docks, and whether levellers and shelters are installed.
• Floor finish, flatness and design load, especially if you will use racking or reach trucks.
• Roof condition, insulation, ventilation, natural light and drainage.
• Column grid, which shapes your racking layout.

4. Site and access

• Yard depth and turning space for the largest vehicle you run.
• Approach road width and any restrictions on heavy vehicles at certain hours.
• Parking for trucks waiting to load, and for staff vehicles.
• Separate gates for inbound and outbound movement, if your volumes need it.

5. Utilities

• Sanctioned power load, the process and time to increase it, and backup arrangements.
• Water source and reliability, and how sewage and storm water are handled.

6. Commercial terms

• Rent basis: whether rent is charged on carpet, built-up or chargeable area, and how that area is measured.
• Security deposit, escalation, lock-in period and maintenance charges.
• Rent-free period for fit-out and the date rent starts.
• Landlord works to be completed before handover, with dates.

A building that passes these checks is worth a detailed visit. One that fails on title, approvals or access usually is not, however attractive the rent.

This guide is general information for occupiers. It is not legal, tax or engineering advice. Requirements differ by state, authority and building, so confirm specifics with your counsel and technical advisers.

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