What should a growing business expect when signing its first warehouse lease?

Moving from a small office or shared space into a dedicated warehouse or industrial facility is a milestone, and the lease reflects that — landlords expect longer commitments (often five years or more) because industrial fit-out and operational set-up cost more to establish and disrupt to move. That longer term is usually a fair trade: it also gives the growing business more certainty over its biggest fixed cost.

Expect the permitted use clause to matter more than it might first appear, outgoings to be charged on top of rent rather than bundled in, and a make-good clause that could require reinstating racking, partitions or hardstand works at the end of the lease — worth understanding and, where possible, negotiating down at signing rather than discovering at exit. Security (commonly a bank guarantee of a few months' rent) is also standard, and its size can often be discussed based on your trading history.

The single most useful habit for a first industrial lease is reading every clause against how the business is actually likely to operate and grow over the term — not just today's headcount and stock levels — and asking questions about anything unfamiliar before signing. A landlord genuinely interested in a long relationship will welcome those questions rather than rush you past them.