What to check before you rent a warehouse
Ask what the floor is rated to carry in tonnes per square metre, and what the clear height is under the beams, before you ask the rent. Neither of those can be changed after you sign. The rent per square metre can be negotiated, and compared, later.
Most first-time tenants start with the price per square metre, which is the right question asked in the wrong order. Two buildings at exactly the same rent can hold nearly twice as much stock as each other if one is taller, and the cheaper one may be unusable if your goods are heavier than its floor was built for.
Three numbers to ask for before the rent
All three are built into the structure. They cannot be changed afterwards, or only at a cost that makes no sense. Ask on the first phone call, before anyone drives out to look.
| The number | Why it matters | What to ask for |
|---|---|---|
| Floor loading | It decides what you can store, how high you can rack, and whether a forklift can work on it. A floor that is under-rated cracks and dishes, and under most leases that becomes the tenant's liability | The figure in tonnes per square metre, and whether there is an engineer's certificate for it |
| Clear height | It decides the volume you can actually use, which is not the floor area you are paying for. Six metres and ten metres over the same footprint are very different buildings, and the taller one is often cheaper per unit stored even at a higher rent | Floor to underside of beam or truss, not floor to ridge |
| Electrical supply | If there will be machinery, cold storage or air conditioning, the transformer size and three-phase supply decide it. Upgrading later takes months and the cost usually lands on the tenant | Transformer capacity in kVA, whether the supply is three-phase, and whose name the meter is in |
The floor deserves a longer note, because it is where people lose money without noticing. Warehouse slabs all look identical from above. A slab poured for light goods and a slab poured for high racking with forklifts running all day differ in thickness and in the steel inside them, and none of that is visible. The only way to know is to ask for the number and the certificate. If the owner cannot produce either, assume it is a light-duty floor.
Going over the building
Visit once in bright sun, and if you can, once in the rain. The two kinds of problem show themselves at different times.
- Roof and leaks. Stand inside in daylight and look up. Light coming through along the seams is water coming through as well. Look for staining on the slab and rust runs down the columns. Circular marks on concrete are evidence that water has dripped on that spot repeatedly.
- Doors and openings. Measure the real width and height rather than taking the stated figure. A six-wheeler and a ten-wheeler are not the same, and a container needs both headroom and a turning radius.
- Docks and floor level. A building at ground level means goods are lifted by hand. One with a raised dock a lorry can reverse against saves real time per trip. If you ship daily, that difference becomes a monthly wage bill.
- Drainage around the building. Walk the perimeter channels and look for silt. Check whether the yard falls away from the building or towards it.
- Fire systems. Ask whether there are sprinklers, whether extinguisher provision meets requirements, and who is responsible for the annual inspection. It affects both your insurance premium and licence renewals.
- Office and washrooms. Many units come with a small office. Check whether it is air conditioned, whether the water is mains or borehole, and whether the washrooms suit the headcount you will bring.
Check the location before you fall for the building
A good warehouse in the wrong place is one you will move out of within two years, having paid for the move twice. Three things matter.
Access first. Drive in and out at the hour you will actually use. If you dispatch in the morning, go in the morning: a lane that is clear at three in the afternoon can be solid at seven. Look too for low bridges or weight-limit signs between the main road and the gate, because a restriction like that means the lorry you planned around simply cannot get there.
Flooding second. Ask the neighbours directly whether it floods, how deep, and which year. People who have been there answer more accurately than the person trying to let it to you. Watch for the signs as well: staining along the bottom of walls, or a yard built up higher than the road. How to check flood history properly is in checking a property's flood history.
Zoning third. This is the one most often overlooked and the most expensive to get wrong, because a building being a warehouse does not mean you may put machinery in it. Each zoning colour permits different activities, and storing goods and manufacturing are two different things in law.
Storage and manufacturing are not the same thing
If you are renting purely to store stock, this is simple. If there is any plan to bring in machinery, even one machine, two more checks apply.
The first is the zoning colour of that particular plot. Purple is the most permissive industrial zone; other colours restrict progressively, and some effectively rule out factories. What each colour allows is set out in purple zone land and the city plan.
The second is the factory operating licence. Whether an activity needs one has its own thresholds, and the person who must hold it is the operator, not the building owner. So even if the owner says a previous tenant ran machinery there, that does not mean you can without applying. The thresholds are in the factory licence and Ror Ngor 4.
What to do about it is to write it into the lease: the landlord warrants that the building and land may be used for the business the tenant has described, and if they cannot be, for zoning or licensing reasons, the tenant may terminate and have the deposit returned. That single sentence covers the worst outcome entirely.
The clauses in a warehouse lease that are worth arguing over
A commercial lease looks much like a residential one. The money at risk is several times larger. These are the points to settle before signing rather than after.
| Clause | What to watch |
|---|---|
| Term | A lease of immovable property longer than three years must be registered with the competent official. Without registration it is enforceable for three years only. A business spending money fitting the building out should register, not sign rolling three-year terms |
| Renewal and rent increases | Get a renewal right in writing, with a cap on the increase as a figure or a percentage. Without it, at the end of the term you have no negotiating position at all, because moving out costs more than paying up |
| Alterations | Set out plainly what you may do without asking each time, and what happens at the end: does the fit-out come out, or stay. Left vague, this becomes a large bill on the day you leave |
| Repairs | Separate structure from use. Structure, roof and main systems should sit with the landlord; wear from your operation with you. A lease that says the tenant repairs everything is one to amend |
| Deposit | Three to six months is normal for commercial space. Write down the conditions for its return, the deadline for returning it, and what may and may not be deducted |
| Early termination | Check how much notice you must give and what it costs. Check the landlord's side too. A lease that lets only one party terminate is a risk that is hard to price |
The mechanics of registering a long lease and what it costs are in registering a long lease and the stamp duty on it.
What to add to the rent before you compare
The advertised rent is not what leaves the account each month. Build a comparison that adds all of the following, then put two or three buildings side by side.
- VAT. Letting immovable property is exempt from VAT, but a separately billed service or common-area charge is not. If the landlord issues two invoices, work out which one carries VAT and total it properly.
- Withholding tax. A corporate tenant paying rent must withhold tax at 5 percent and remit it to the Revenue Department. It is not an extra cost to you, but it is a step that has to be done correctly or it attracts a surcharge.
- Stamp duty. A lease of land or buildings carries duty of 1 baht per 1,000 baht of total rent over the term, about 0.1 percent. Where total rent is 1 million baht or more, the landlord must pay it in cash to the official rather than affixing stamps.
- Land and building tax. In principle the owner's liability, but plenty of commercial leases pass it to the tenant. Read that clause and ask to see last year's figure.
- Service and security charges. If the unit sits in an estate or a shared facility there will be a monthly charge. Ask how it is calculated and how much it can rise each year.
- Insurance. Most leases require the tenant to insure their own property and carry third party liability cover. Get the sums the landlord requires first, then obtain a real quotation.
Three things to do before signing
First, ask for a copy of the title document and check that the person signing is the owner or holds a proper power of attorney. Renting from someone who is not the owner is a problem with no later fix.
Second, photograph the condition of the building from every angle on handover day: floor, walls, roof, doors and the electrical installation, dated, and attach the set to the lease with both parties initialling it. That set of photographs is the only thing that will settle which damage predated you on the day you hand it back.
Third, read the electricity and water meters on handover, photograph the dials, and write the figures into the handover record. Disputes over a previous tenant's unpaid utilities come up more often than people expect and are hard to unwind without a starting number.
If you are looking now, see warehouses to let, or by province at Samut Prakan, Chon Buri and Samut Sakhon. For other commercial space, see commercial premises to let.
Frequently asked questions
What should I ask before the rent?
Floor loading in tonnes per square metre, clear height from floor to underside of beam, and the transformer capacity. None of the three can be changed after signing, whereas the rent can be negotiated.
Can I put machinery into a warehouse I rent?
Not automatically. It depends on the zoning colour of that plot and whether the activity requires a factory operating licence. The licence is held by the operator, not the building owner.
Does a warehouse lease have to be registered?
If the term exceeds three years, yes, with the competent official. Without registration it is enforceable for three years only, so a business investing in fit-out should register.
Is warehouse rent subject to VAT?
Letting immovable property is exempt, but separately billed service or common-area charges are not. Check how the landlord splits the invoices.
How much tax do I withhold on the rent?
A corporate tenant withholds 5 percent from the rent and remits it to the Revenue Department.
How is stamp duty on a lease calculated?
1 baht per 1,000 baht of the total rent over the term, roughly 0.1 percent. Where the total is 1 million baht or more, the landlord must pay it in cash to the official.
Who pays the land and building tax?
In principle the owner, but many commercial leases pass it to the tenant. Read the clause and ask for last year's figure before signing.
How many months' deposit is normal?
Three to six months for commercial space. More important than the number of months are the conditions for its return, the deadline, and what may be deducted, all of which should be written down.
Key takeaways
- Ask for floor loading, clear height and electrical capacity before you ask the rent, because none of the three can be changed later.
- Visit once in bright sun to look for light through the roof seams, and once in the rain if you can.
- Drive the approach at the hour you will really use, and check for low bridges and weight limits on the way.
- Ask the neighbours about flooding, not only the landlord.
- If machinery is coming, check the zoning colour and the factory licence. A building being a warehouse does not settle it.
- A term over three years must be registered, or it binds for three years only.
- Add VAT on services, stamp duty of about 0.1 percent, and land and building tax before comparing buildings.
- Photograph the condition and record the meter readings on handover, with both parties initialling.