Leasing a warehouse: 7 things to check before signing

Leasing a warehouse is not like leasing retail space. A small oversight during due diligence can halt production or trigger expensive renovation. Here are the seven items to check.

1. Land and building legal status

Ask the owner for the land title and the construction permit. The land must be classified for production and business use (SKC) or be inside an industrial park — not agricultural land that has yet to be converted.

2. Fire safety approval

This is the item most often skipped. A building without fire safety sign-off cannot be licensed to operate, and redoing the system can cost hundreds of millions of dong.

3. Permitted industries

Each industrial park has its own list of industries it accepts. High-emission sectors are often refused. Confirm with the park management board before paying a deposit.

4. Floor loading and clear height

A standard floor carries 2-3 tonnes/m². If you install heavy machinery or stack high, you need 5 tonnes/m² or more. Clear height to the roof must be at least 8m for multi-level selective racking.

5. Power capacity

Check the existing transformer and the maximum capacity allocated. Upgrading power takes two to six months, and under most contracts the tenant bears the cost.

6. Container access

The road in front needs at least 10m of width for a 40-foot container to turn. Check bridges and culverts along the approach road too — many carry load restrictions.

7. Contract terms

Watch the lease term, the annual rent increase, the rent-free fit-out period, early termination conditions and handover obligations. Have a lawyer review any long-term contract before signing.