Land use comes first
A shed is only usable if the land is zoned for industrial or warehousing use and the building is approved for it. A shed on agricultural or residential land, however well built, can be sealed.
Ask for the approved plan, the completion or occupancy document, the industrial plot allotment letter where the land came from a state industrial development corporation, and any transfer permission that corporation requires before a lease.
The physical specification
Clear height under the eaves and at the centre decides what racking and what machinery fit. Measure it; do not accept a brochure figure.
Floor loading capacity, stated in tonnes per square metre, decides what you can stack. Ask for the structural design basis, not an opinion.
Column spacing, the width and height of the docks, the turning radius in the yard and the access road width decide whether a container-carrying vehicle can actually reach the door.
Roof type and insulation, ventilation, natural light, and the condition of the flooring — a dusty or cracked floor is a real cost to fix.
Power, water and compliance
The sanctioned electricity load, the connection type and whether it is a commercial or industrial tariff. Increasing sanctioned load takes time and money.
Water supply and effluent disposal, and whether the unit needs consent to establish and consent to operate from the state pollution control board for your activity.
Fire safety approval for the occupancy type, and whether the shed's fire system matches what your goods require. Insurers will ask the same question.
The lease itself
Rent is usually quoted per square foot per month on the built-up area. Confirm which area the rent is computed on and measure it once.
Negotiate the term, lock-in, escalation at a stated percentage on a stated cycle, and the security deposit in months of rent. Long lock-ins are common in industrial leases because the tenant's fit-out is expensive.
Split repairs clearly: the structure, the roof and the external walls to the owner; the interior, the flooring finish and the services to the tenant is the common pattern, but write it down.
Agree the fit-out period, the reinstatement obligation at the end, and whether you may sublet or assign on a group transfer.
Costs beyond rent
Common area maintenance in a managed industrial park, property tax where it is passed through, insurance, security and the cost of restoring the premises at exit.
Compare total occupancy cost per square foot rather than headline rent; a cheaper shed with a low eave height and weak power is not cheaper.
Common questions
What eave height should I look for?
It depends entirely on your racking and process. Fix your storage plan first, then measure candidate sheds against it rather than against a market average.
Who pays for the roof leaking?
Structural and roof repairs normally sit with the owner, but only if the lease says so. Put the split in writing before signing.
Can I lease a shed on agricultural land?
Not safely. The land use has to permit industrial or warehousing activity, and the building has to be approved for it.
Sources
- Your state's industrial development corporation allotment and transfer rules
- State pollution control board consent to establish and consent to operate requirements
- Local building bye-laws and fire safety rules for industrial occupancy
Last checked 2026-09-23.