What security do landlords typically require in an industrial lease?

A bank guarantee — an unconditional undertaking from the tenant's bank to pay the landlord up to a set amount on demand — is the most common form in commercial and industrial leasing, because it's straightforward for the landlord to call on and doesn't tie up the tenant's own cash the way a deposit does (it does, however, usually require the tenant to secure it against their own banking facilities). A cash security deposit achieves the same protection more simply but locks up capital for the lease term. A personal or director's guarantee adds the guarantor's personal assets as a further backstop, common where the tenant is a newer or smaller company.

The amount is typically expressed as a number of months' gross rent — often in the vicinity of three to six months, though it varies with the tenant's covenant strength, the lease term, and the landlord's risk appetite. A longer lease to a well-established tenant can sometimes support a lighter security package than a short lease to a newer business.

Security terms are negotiable, particularly for a tenant with a strong trading history or a long commitment. It's worth discussing early rather than accepting a standard figure — a landlord focused on the long-term relationship will size security to the genuine risk, not simply to the maximum the market will bear.