Leasing out a warehouse can be an excellent way for industrial property owners to generate steady income while keeping their investment assets working for them. However, too many landlords unknowingly make mistakes during the leasing process that can cost them valuable tenants, revenue, and even long-term property value.
To help you avoid these pitfalls, we’ve outlined the Top 5 Mistakes Landlords Make When Leasing Their Warehouse — and how you can take the right steps to secure the best results.
1. Failing to Understand Market Rates
One of the most common mistakes landlords make is mispricing their warehouse space. Setting the rent too high can scare away prospective tenants, while setting it too low can leave money on the table.
Why this matters:
- Market rates fluctuate based on supply, demand, and location.
- Industrial vacancy rates are at historic lows in many regions, especially in the GTA.
- Tenants are willing to pay a premium for the right space, but only if it aligns with comparable properties.
The Fix: Always work with an industrial-focused broker who understands current leasing trends, comparable properties, and tenant demand in your specific area.
2. Overlooking Property Functionality
Not every tenant has the same operational needs. Some may require high ceiling clearance for racking, others need multiple loading docks, and some demand food-grade certifications.
Landlords often make the mistake of:
- Marketing the space without highlighting functional features.
- Ignoring small upgrades (like LED lighting, improved HVAC, or security) that significantly increase tenant appeal.
- Overlooking compliance with zoning, fire safety, or environmental regulations.
The Fix: Understand the strengths of your property and tailor your marketing to the industries that would benefit most.
3. Weak or Nonexistent Marketing
Simply putting up a listing is not enough. Industrial tenants are actively searching, and they expect detailed, professional listings that showcase your warehouse’s strengths.
Mistakes to avoid:
- Using poor-quality or no photos.
- Providing incomplete information (loading docks, power capacity, ceiling heights, zoning details).
- Relying solely on generic listing platforms instead of targeted marketing.
The Fix: Use a professional marketing strategy with high-quality visuals, detailed property data, and exposure to networks of qualified tenants.
4. Neglecting Lease Structure and Terms
A lease is more than just a rental amount. Many landlords make the mistake of rushing into agreements without considering the fine details that protect their interests.
Common oversights include:
- Not addressing repair and maintenance responsibilities.
- Leaving unclear clauses around utilities, taxes, and insurance.
- Offering terms that don’t align with their long-term investment strategy.
The Fix: Ensure your lease agreements are drafted with legal and financial foresight. An experienced broker can help you structure terms that attract tenants while safeguarding your property value.
5. Trying to Do It All Alone
Perhaps the biggest mistake landlords make is thinking they can handle everything themselves. Industrial leasing requires a mix of market knowledge, negotiation skills, legal expertise, and industry connections.
The risks of going solo:
- Settling for below-market lease rates.
- Signing tenants who are not financially stable.
- Losing months of income due to long vacancy periods.
The Fix: Partner with a professional who specializes in industrial leasing and can guide you every step of the way.
Why Lease Your Warehouse with Richi Khanna
Avoiding these mistakes can be the difference between a profitable lease and a costly misstep. That’s where Richi Khanna, Industrial Real Estate Broker with Pontis Realty Inc., Brokerage, comes in.
When you work with Richi:
- You gain exclusive industrial expertise — Richi focuses solely on warehouses, manufacturing facilities, distribution centres, and storage yards.
- You benefit from his strong market insight into the GTA industrial sector, ensuring your warehouse is priced and positioned to attract the right tenants.
- You get access to a robust network of qualified tenants and investors, reducing vacancy times and maximizing returns.
- You receive hands-on, personal service, with Richi guiding you through valuation, marketing, tenant selection, and lease negotiation.
Your warehouse deserves more than a “for lease” sign — it deserves a strategy that secures the right tenants and maximizes long-term value.
Contact Richi Khanna today to learn how he can help you lease your warehouse quickly, profitably, and with complete peace of mind.