Answers · Permitted use
Why does the permitted use clause matter in an industrial lease?
Direct answer
The permitted use clause in an industrial lease defines exactly what activities a tenant may carry out in the premises — warehousing and distribution, light manufacturing, or a specific trade. Operating outside that defined use can breach the lease, and changing it later may need landlord consent and a council approval, so it's worth getting right up front.
Industrial premises are built and zoned around a use, so the permitted use clause isn't a formality — it connects directly to what the building was designed for, what the site's zoning and approvals allow, and what the landlord's insurance covers. A facility approved for storage and distribution may not be approved for a use involving hazardous materials, heavy manufacturing, or extended public access, even if the physical space would technically fit.
Businesses evolve, and a use that made sense at signing can shift over the lease term — a distribution operation adding light assembly, for instance. Because that can trigger both a lease variation and a council approval process, it's worth flagging changes to the landlord early rather than after the fact. A cooperative landlord will work through a genuine, compatible change in use; an overly narrow clause with no flexibility can quietly become a constraint on how the business can grow.
When assessing any industrial premises, read the permitted use clause against what the business actually does — and might plausibly do in future — rather than assuming it's a rubber stamp. It's one of the clauses worth as much attention as rent.
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