Industrial leases look like other commercial leases on the surface, but the risk drivers are unique: heavy use of building systems, loading logistics, outdoor storage, environmental compliance, and surrender/restoration at scale. Landlords typically prioritize strict use controls and building preservation, and rent structures may be semi-gross or capped in ways not seen in office/retail forms.

Measurement also differs: beyond BOMA, many parties reference SIOR methods for industrial buildings (often without “gross-up” for common areas), which can materially affect rentable area and operating-cost allocations.

Operationally, tenants often need bespoke solutions for parking counts, loading doors/ramps/dock levelers, and trailer pads (e.g., concrete plates so parked trailers don’t rut asphalt), with zoning and industrial-park rules constraining outdoor storage.

1) Drafting & Negotiation

• Custom lease forms & LOIs for single-tenant and multi-tenant industrial assets (warehouse, manufacturing, distribution, flex/ancillary office).

• Use & operating covenants: permitted/prohibited uses, hours, noise/vibration, floor loads, roof loads, utility intensity, MEP/HVAC performance, and continuous-operation concepts adapted for industrial.

• Measurement & economics: BOMA vs. SIOR, semi-gross vs. triple-net, caps/collars on controllable CAM and admin fees, audit rights.

• Loading & yard rights: door specs, clear heights, turning radii, trailer parking rights, laydown areas, and pavement specs.

• Environmental schedules: hazardous-substance protocols, baseline testing at commencement, ongoing monitoring/reporting, and closure standards.

• Alterations & fit-out: power upgrades, slab reinforcement, pits/crane bays, rooftop units—controls on structural impact, with clear removal/restoration rules.

• Risk transfer: insurance limits are often higher for industrial; where a single tenant occupies the whole building on a true NNN, building insurance may sit with the tenant—documented with lender-friendly endorsements.

• Special rights: options to purchase or rights of first offer/first refusal are more common given tenant capital investment—carefully scoped to preserve value.

2) Lease Review & Due Diligence

• Plain-English risk matrix (red/amber/green) with targeted redlines.

• Use/zoning/park-rule compatibility and outdoor-storage compliance review.

• Operating-cost definitions, “controllables,” admin-fee mechanics, and audit tools.

• Surrender/restoration scope and realistic timelines/costing (e.g., removing racking, infilling pits, demobilizing power).

3) Default Management & Remedies

For Landlords:

• Demand/default notices, cure plans, termination/forfeiture, lawful re-entry, distraint/bailiff (where available), and enforcement of deposits/LCs/guarantees.

• Claim strategy for future rent, mitigation, reletting, and damages.

For Tenants:

• Relief from forfeiture, urgent injunctions vs. unlawful lockouts, abatement/set-off for landlord service failures, and preservation of business-critical access/utilities.

4) Dispute Resolution & Litigation

Negotiation/mediation/arbitration OR Superior Court litigation for unpaid basic/additional rent, operating-cost disputes, alteration/surrender claims, and environmental breach issues, with post-judgment enforcement (garnishments; writs).

• Use & Intensity Controls. Clear, permitted operations with sensible change-of-use tests so growth or new contracts don’t breach the lease. Landlords often police activities that increase environmental risk or stress building systems.

• Parking, Loading, Trailers. Hard-numbered parking entitlements, defined loading specs, and yard rights—including trailer pads and 24/7 access if required.

• Outdoor Storage & Zoning. Align lease permissions with municipal by-laws and industrial-park covenants to avoid fines or compliance conflicts.

• Repairs & “Reasonable Wear and Tear.” In single-tenant buildings, tenants often assume most R/M/R obligations (landlord keeps structural)—but the wear-and-tear standard is fact-specific and higher-intensity uses narrow the tenant’s safe harbour. We calibrate language and proof obligations.

• Alterations & Surrender. Industrial alterations frequently affect the structure; landlords are less likely to let them remain. We pre-agree removal scopes, timelines, and over-hold mechanics so end-of-term doesn’t become a crisis.

• Measurement & CAM. Choosing BOMA vs. SIOR and setting fair gross-up/cap rules avoids rent/CAM surprises and audit friction.

• Insurance & Risk Transfer. Higher limits, business-interruption considerations, and Lender-required terms—especially on single-tenant NNN.

• Environmental Programs. Baseline testing at commencement, right-of-entry for inspections/sampling, realistic hazardous-substance reporting, and end-of-term verification.

• Special Rights (Option to Purchase). Often justified by tenant CapEx; we model triggers, pricing methods, and carve-outs to preserve owner flexibility.