Warehouse lease due diligence: what to check before you sign in 2027

What to take away

Physical inspection: roof, slab, and sprinkler systems

A warehouse lease due diligence checklist starts with the shell. Walk the roof after a rain to find ponding. Check slab flatness if you plan narrow aisle racking. Verify sprinkler head type and water flow. The NFPA 101 Life Safety Code covers egress and parking, not sprinkler density, so bring a fire protection engineer.

Check the main service amperage and panel capacity. A 2,000 amp service may not support conveyor sortation and electric forklift charging. Ask for a power study before you commit.

For markets like the Inland Empire, Dallas, and Atlanta, the freight corridor market comparison adds port access and dock ratio to this physical list.

A warehouse with 32 foot clear height but a 28 foot sprinkler deflector clearance may not store the racking you planned.

Documentary checks: title, zoning, and environmental history

Order these documents in this sequence:

The title commitment shows easements and restrictions that can block trailer parking. Zoning confirms whether your distribution center lease requirements allow outdoor storage or 24 hour operation.

A Phase I environmental site assessment reviews historical uses. Look for dry cleaners, auto repair, or underground storage tanks. If the Phase I finds a recognized environmental condition, order a Phase II.

Regulatory and code items: fire, OSHA, and certificates

Fire code compliance is separate from lease compliance. Ask for the latest fire marshal inspection. For OSHA, check powered industrial truck training records and dock leveler maintenance logs. If the building sits in Florida, the Florida code violation disclosure rules decide what the landlord must reveal about certificate of occupancy and OSHA hazards.

Ask for the certificate of occupancy for your exact suite. A shell certificate may not cover racking, office build-out, or hazardous material storage.

Freight access and distribution center requirements

Count the dock doors and measure the dock ratio. A 250,000 square foot building with 20 doors gives one door per 12,500 square feet. Check turning radius for 53 foot trailers. Confirm the trailer parking count in the lease, not just the site plan.

Measure clear height to the lowest sprinkler deflector and to the bottom of joists. A 36 foot clear height may drop to 32 feet under a 6 inch sprinkler line.

Near federal offices, GSA leasing rules for landlords add security standards and firm terms that change the inspection list.

Negotiation points and tenant improvement tax treatment

A net lease shifts taxes, insurance, and maintenance to the tenant. Review the table below before you accept a gross or net structure.

An escalator clause can be fixed or tied to CPI. Before you sign, model the build-out with Section 179 and cost segregation so the tenant improvement allowance has a real after-tax cost.

CAM charges often include roof and structure repairs for net leases. Cap controllable CAM at 5 percent per year if the landlord agrees.

Example: 2027 walkthrough on a 250,000 square foot warehouse

On a 2027 tour of a 250,000 square foot warehouse in Dallas, the tenant checks roof warranty and slab flatness for a 40 foot racking aisle.

The tenant also checks ESFR sprinkler clearance, 2,000 amp service, Phase I environmental findings, code violation letters, 30 dock doors, and trailer parking for 60 rigs.

The tenant also asks for the landlord's Section 179 and cost segregation study before signing.

Common questions