What are red flags in an industrial real estate transaction?
Every successful industrial venture in the Greater Toronto Area begins with a clear vision. Whether you are preparing to launch a new business or expand existing operations, securing the right commercial or industrial lease is critical. However, before signing any agreement, it is essential to conduct thorough due diligence to identify potential red flags that could impact your investment.
Key warning signs to watch for include:
Landlord’s financial instability
Unrealistically optimistic financial projections
Lack of accessible or transparent property data
Absence of operating expense histories
Ambiguities in Common Area Maintenance (CAM) charges
Unclear or inconsistent financial calculations
Vague tenant designations and obligations
Restrictive lease clauses that may limit future flexibility
Unclear or unfavorable demolition, relocation, and non-disturbance clauses
Navigating these complexities requires expert guidance to protect your interests and ensure a successful lease agreement.
Contact us at jonathan@lennard.com for professional assistance and insights tailored to the GTA industrial real estate market.