Lease Agreement for Industrial Property

When it comes to leasing industrial property, it`s important to have a solid lease agreement in place to protect both the landlord and the tenant. A lease agreement lays out the terms and conditions of the lease, including the rent amount, lease duration, maintenance responsibilities, and other important details.

Here are a few key things to consider when drafting a lease agreement for industrial property:

Rent and Rent Escalation

The rent amount should be clearly stated in the lease agreement, along with the payment schedule. For industrial properties, rent can be calculated based on the square footage of the space, and there may also be additional charges for utilities, maintenance, and taxes.

It`s also important to consider rent escalation clauses, which allow the rent to increase over time. These clauses can be based on a fixed percentage increase each year, or tied to inflation or other economic factors.

Maintenance and Repairs

Industrial properties can require a significant amount of maintenance and repairs, so it`s important to clearly establish who is responsible for these tasks in the lease agreement. The landlord is typically responsible for major structural repairs and maintenance, while the tenant is responsible for day-to-day maintenance and minor repairs.

Insurance and Liability

Both the landlord and the tenant will need insurance coverage to protect against liability in case of accidents or damage to the property. The lease agreement should outline the insurance requirements for both parties, including types of coverage and coverage limits.

Term and Renewal

The lease duration should be clearly stated in the lease agreement, along with any renewal options. Industrial leases may be longer than residential leases, ranging from 5 to 15 years or more. Renewal options can provide flexibility for both parties, allowing the tenant to continue leasing the property and the landlord to maintain a stable source of income.


Industrial tenants may need to sublease a portion of their space to other businesses. The lease agreement should specify whether subleasing is allowed, and under what conditions. The landlord may also want to approve any subtenants to ensure they are a good fit for the property.

Overall, a well-written lease agreement is crucial for any industrial property lease. It can help prevent disputes and ensure that both parties are on the same page when it comes to their rights and responsibilities. By taking the time to carefully draft the lease agreement, landlords and tenants can set themselves up for a successful and mutually beneficial leasing relationship.