Manufacturing Space Requirements Checklist for Tenants

When choosing a manufacturing space, you need to consider zoning laws, building codes, space dimensions, utilities, and safety systems. Missing key details can lead to costly upgrades or legal issues. Here's a quick breakdown of what to check:

• Zoning & Permits: Verify zoning codes and ensure your activities are permitted. Check building codes for compliance with safety and operational standards.
• Space Layout: Plan for equipment, workflow, and future growth. Include extra space for staging, shipping, and storage.
• Ceiling Height & Floor Strength: Confirm clear heights and floor load capacity match your machinery and storage needs.
• Power & Utilities: Ensure adequate electrical supply, water, gas, and waste systems. Test these systems before signing the lease.
• Ventilation & Safety: Check HVAC systems, fire suppression, and emergency exits. Ensure compliance with local regulations.
• Loading & Parking: Ensure loading docks fit your operational needs and parking meets local by-laws.
• Energy Efficiency: Look for certifications like LEED or ENERGY STAR to save on operational costs.

Doing your due diligence upfront avoids surprises and ensures the space supports your business needs.

Zoning and Local Regulations

Zoning Classifications and Permitted Uses

Industrial zones are designed to keep manufacturing, warehousing, and similar operations separate from residential areas, helping to reduce noise and other disruptions. But here's the tricky part: zoning bylaws can differ widely between municipalities. What’s allowed in one city in the Greater Toronto Area might be restricted in another.

To determine the zoning code for a property, check resources like tax bills, property deeds, or municipal planning websites. Common designations you might come across include M1, M2, “Heavy Industrial,” or “Industrial Park.” Once you’ve identified the code, dive into its “Permitted Uses” section to confirm that your planned manufacturing activity aligns with the zoning regulations.

Manufacturing activities typically fall into three categories:

• Permitted Uses: Activities allowed outright.
• Conditional Uses: Activities allowed only if specific municipal conditions are met.
• Accessory Uses: Secondary activities that support the main permitted use.

If your business doesn’t fit neatly into one of these categories, it’s a good idea to consult the municipal planning or zoning department for clarification.

"Just because the previous occupant used a property for a specific purpose does not mean you will be permitted to do the same." - BDC

Once zoning is confirmed, ensure the property also complies with current building codes and safety standards.

Regulatory Compliance and Permits

After verifying zoning, the next step is to ensure the property meets updated building code requirements. Manufacturing spaces must adhere to the 2025 National Building Code of Canada and the Ontario Building Code, which set the bar for structural and safety standards. Compliance involves proper documentation and regular inspections.

Pay close attention to specific requirements for:

• Racking Systems: Must align with CSA A344 standards.
• Seismic Resilience: The building should withstand seismic activity as required.
• Load-Bearing Capacity: Ensure the structure can handle your operational needs.

Additionally, fire suppression systems must be compatible with your manufacturing layout. For example, in-rack sprinkler systems and proper flue spacing might be necessary. Skipping these steps or operating outside the zoning rules could lead to fines, lawsuits, higher insurance premiums, or even denied claims.

To navigate these complexities, consider hiring a lawyer experienced in commercial property. They can review municipal planning records and confirm that your business complies with all local regulations. If the property almost meets requirements but falls short on minor details - like parking or setback rules - you can apply for a “Minor Variance” through the local planning authority.

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Space Dimensions and Layout

Square Footage and Workflow

Careful planning of your facility's layout is key to aligning it with your manufacturing and operational needs. Start by mapping out your entire process - from handling raw materials to shipping finished products - to figure out how much space you'll need. This includes accounting for your equipment's footprint, the operating space around machinery, areas for staging materials, and zones for shipping and receiving. Depending on the scale of operations, manufacturing facilities can range anywhere from 10,000 to 200,000 square feet.

Make sure aisle widths are wide enough to safely handle forklift traffic while meeting pedestrian safety standards and building codes. Properly spaced aisles not only reduce congestion but also ensure that emergency access routes stay clear. For storage, facilities with 30-foot clear heights typically require about 13 to 15 square feet per pallet position.

It's also wise to include a buffer of 15–25% in your space calculations. This extra room can help accommodate growth over the next three years without forcing a costly relocation. Be sure to consult your operations team to identify any inefficiencies in workflow that may impact your space needs. Don’t forget to assess exterior space requirements for truck manoeuvring and trailer storage, as these are often overlooked in square footage plans.

Lastly, remember to allocate sufficient room for administrative and support areas.

Office and Support Space

Administrative areas typically take up about 10–20% of the total space, with an additional 10–15% set aside for support facilities like restrooms and break rooms. For office employees, plan for approximately 150–250 square feet per person.

When leasing, it’s important to clarify how the office and production spaces are measured and billed. Including a "Leased Premises Definition and Right to Remeasure" clause in your lease can ensure accurate square footage calculations for each area. If you’re planning for possible growth, consider securing a Right of First Refusal or Right of First Offer. These options allow you to lease additional contiguous space without having to move your entire operation.

The Ultimate Warehouse Checklist: Building Specifications

Ceiling Height and Floor Load Capacity

Once you've mapped out your space's horizontal dimensions and layout, it's time to evaluate its vertical clearance and structural integrity.

Clear Ceiling Heights

Clear height refers to the distance from the finished floor to the lowest overhead obstruction - such as sprinkler systems, HVAC units, or light fixtures - not the peak of the roof itself. This distinction matters because these obstructions can limit the usable vertical space for storage and equipment.

In mid-bay manufacturing facilities, clear heights generally fall between 6.1 and 9.1 metres (20–30+ feet), though specific needs will depend on your operations. Every additional foot of clear height can boost storage capacity by 7–10%, often justifying higher rental rates per square foot. Before committing to a lease, identify any potential obstructions and plan your racking layout to calculate the actual storage capacity.

"Clear height is nearly impossible to change - prioritize this spec when choosing between space types." - WareCRE

For automated systems or very narrow aisle (VNA) racking, floor flatness and levelness are critical. These systems often require clear heights of 12–15 metres or more to function properly.

Floor Load Ratings

Manufacturing operations typically need reinforced floors with a rating of 250+ PSF (pounds per square foot) to accommodate heavy machinery and specialized production processes. It's essential to differentiate between uniform load ratings (distributed weight) and point load ratings (concentrated weight).

Request a structural engineer's report to confirm the floor's load capacity (measured in tonnes per square metre). Additionally, inspect the facility for signs of wear, such as deflections or damage caused by heavy equipment.

The 2025 Ontario Building Code introduces strict requirements for storage racking systems. These systems must be integrated into the building structure, anchored securely, and labelled with load capacities on every rack. Make sure the facility has current Pre-Start Health and Safety Review (PSR) reports or original engineering documentation for any existing racking systems. If you're considering adding mezzanines or other vertical expansions, verify that the building's foundations and structural frames can handle the additional load.

Next, it's time to examine the facility's power supply and utility capabilities.

Power Supply and Utilities

Once structural and spatial criteria are confirmed, the next step is to evaluate whether the facility's power and utility systems can meet your operational needs.

A solid power and utility setup is essential - without it, even the most efficiently designed manufacturing space will struggle to function.

Electrical Requirements

Most manufacturing operations need at least 200+ amp, 240V, 3-phase power to handle heavy machinery and industrial equipment. It's crucial to calculate your total electrical demand, factoring in both current usage and potential future expansion, before committing to a lease.

Bring in a licensed electrician or electrical engineer to assess the system's amperage, check for any history of power failures, and identify any necessary upgrades. If your operations can't afford downtime, you might also want to negotiate a Generator Rider in your lease. This agreement outlines the terms for installing and maintaining backup power systems.

Don't overlook phone and internet connectivity either. Many automated manufacturing systems rely on real-time data, so ensuring robust connectivity upfront can save you from costly retrofits later.

Water, Gas, and Sewer Services

Manufacturing facilities often require utility setups that go beyond standard commercial needs. For instance, don't just take the landlord's word on water flow and pressure - test the fixtures yourself to confirm they meet your requirements. If your operations involve heating or thermal processes, verify the availability and functionality of high-capacity gas lines.

Waste management systems are equally important. Whether you're dealing with sanitary sewers, industrial wastewater systems, or septic tanks, ensure they can handle your output. Inspect plumbing for leaks, damaged pipes, or water damage. For properties with septic systems, check for proper drainage and confirm there are no leaks.

A formal building inspection checklist can help you systematically confirm that all utility components meet local codes and are in working order. To protect yourself, consider making your lease conditional on a successful utility inspection. This allows you to address any issues through renegotiated pricing or by requiring the landlord to handle repairs before you take possession. Lastly, include Alterations Clauses in your lease to ensure you have the flexibility to modify or upgrade utility systems as your manufacturing needs grow.

Ventilation, HVAC, and Environmental Systems

Proper ventilation and environmental controls are essential to avoid operational disruptions and meet regulatory standards. Poor air quality or inadequate fire protection can lead to shutdowns and hefty fines.

Ventilation and Air Quality

In Ontario, manufacturing facilities must adhere to the Ontario Building Code (OBC) 2020, especially Section 9 and Supplementary Standard SB12, which focus on ventilation and energy efficiency. For instance, commercial buildings now need to install heat-recovery ventilators (HRV) or energy-recovery ventilators (ERV) to improve energy performance by 15%. If your facility relies on natural ventilation, make sure at least 25% of vents are located at both the top and bottom, with a minimum unobstructed vent area of 1/300 of the insulated ceiling (or 1/150 for low-slope roofs). Should natural ventilation fall short, mechanical systems must provide 0.5 air changes per hour in summer-cooled spaces and 1.0 for other conditions.

Facilities producing fumes, dust, or chemical vapours must comply with ASHRAE 62.1 and CAN3-A93-M standards, ensuring an air leakage rating of at least 80+. To meet OBC Section 9 requirements, hire licensed contractors. Additionally, consider including a Pro-Tenant Alterations Clause in your lease to allow for the installation of specialized ventilation systems as your needs evolve.

Once ventilation is addressed, it’s equally important to focus on fire safety measures.

Fire Suppression and Safety Systems

Fire safety is not just about protecting assets - it’s a legal requirement under the Occupational Health and Safety Act (OHSA), Ontario Regulation 851, and the Ontario Building Code. Non-compliance can lead to severe penalties, with fines reaching up to $100,000 per offence for individuals and up to $1,500,000 for corporations.

Ensure the facility has a working sprinkler system and clearly marked, properly mounted fire extinguishers. Emergency exits must be well-lit, with backup battery-operated lighting. If your operations involve high-temperature processes, chemical storage, or high-density racking, additional measures like in-rack sprinkler systems or fire-rated duct protection may be necessary. For example, products like 3M Fire Barrier Duct Wrap can provide up to 2-hour fire-rated protection.

"Fire protection is essential for preserving warehouse value, speeding up leasing processes, and ensuring operational safety".

Before signing a lease, request a copy of the Professional Engineer's Report (PSR) or original engineering documents to confirm the layout of fire suppression and ventilation systems. If modifications are required, coordinate with the Authority Having Jurisdiction (AHJ) to maintain compliance. It’s also wise to include a lease clause that allows for necessary fire system upgrades and to specify responsibilities for servicing these systems in the Repair and Maintenance Clause. These steps, along with earlier checks on zoning, structural, and utility systems, help ensure a seamless operational setup.

Loading, Parking, and Accessibility

Running a smooth manufacturing operation starts with having the right loading and parking setups. Without proper dock access or enough parking, production can hit snags, leading to delays and higher costs.

Loading Docks and Truck Access

The type of loading infrastructure you need depends on the size of your operation and how it functions. Smaller spaces (under 5,000 square feet) often rely on drive-in or grade-level doors. Larger facilities, like mid-bay or bulk distribution centres, typically require dock-high doors to handle standard tractor-trailers. This setup isn't just a preference - it’s essential. Retrofitting dock doors or adjusting ceiling heights later can be a costly endeavour.

For operations that deal with cold storage or temperature-sensitive products, dock-high doors with seals are a must. These seals help maintain the required temperature during loading. If your business processes goods quickly between receiving and shipping, cross-docking facilities might be worth considering. In these setups, goods flow straight across the building with minimal storage, boosting efficiency. Keep in mind that dock heights need to match your current fleet and allow room for future growth. Even if smaller vehicles are in use now, regional distribution often demands dock-high access.

Property Type	Typical Size	Required Dock Access	Best Use Case
Small Bay	500–5,000 SF	Drive-in / Grade-level	Small contractors, e-commerce
Flex Space	2,000–15,000 SF	Grade-level / Some docks	Light manufacturing, office combo
Mid Bay	10,000–50,000 SF	Dock-high + drive-in	Regional distribution, manufacturing
Bulk Distribution	100,000+ SF	Multiple dock-high doors	National logistics, 3PL
Cold Storage	5,000–200,000 SF	Dock-high with seals	Food and pharma manufacturing

New building codes set for 2025 will require minimum aisle widths behind loading docks to improve forklift and pedestrian safety. This change will directly affect how staging areas are designed and used. Additionally, any racking systems installed near loading zones must have up-to-date Professional Engineer Summary Response (PSR) reports to meet Canadian safety regulations.

While loading facilities are critical, parking and site accessibility also play a key role in operational efficiency.

Parking and Accessibility

Parking isn’t just a convenience - it’s a legal requirement governed by local zoning by-laws. These regulations ensure that facilities provide enough parking for all businesses operating on-site at the same time. Spaces must be clearly marked with permanent pavement lines and painted markings. Standard parking spots measure 2.6 m by 5.2 m, and aisles must be at least 7 m wide.

To confirm compliance, you’ll need a Zoning Certificate of Occupancy. Most municipalities provide calculation sheets to determine the exact number of parking spaces required for your specific operation. If you plan to add parking spaces, consult your local transportation and works department beforehand. Even if a building permit isn’t needed, additional approvals might still be required.

When considering properties with advanced loading or parking facilities, don’t just look at the base rent. Factor in the total cost, including common area maintenance charges, as these facilities often come with higher operating expenses.

Energy Efficiency and Environmental Features

Beyond infrastructure and safety, incorporating advanced environmental measures can help reduce costs while promoting sustainability.

Energy Efficiency and Green Certifications

Certifications play a key role in evaluating building performance. LEED (Leadership in Energy and Environmental Design) stands out by addressing materials, water use, energy efficiency, and occupant health. Its tiered certification system includes Certified (40–49 points), Silver (50–59), Gold (60–79), and Platinum (80+) levels. Mark Hutchinson, Vice President of Green Building Programs and Innovation at the Canada Green Building Council, highlights its importance:

"LEED focuses on sustainability - and that means impact on the environment and the occupants. Because a building can't be considered sustainable if it's not a healthy place".

ENERGY STAR certification, on the other hand, requires buildings to score 75 or higher based on 12 months of metered energy data, signifying performance better than 75% of comparable facilities. BOMA BEST emphasizes operational excellence, with performance levels ranging from Bronze (30–59%) to Platinum (90% or higher), and evaluates aspects like waste management and the use of cleaning chemicals. For those aiming to achieve net-zero carbon emissions, the Zero Carbon Building (ZCB) standard balances carbon-emitting sources with clean energy and offsets. Certification timelines vary: LEED requires recertification every three years, ENERGY STAR annually, and BOMA BEST every five years.

To verify energy performance, request ENERGY STAR Portfolio Manager data to compare energy use per square metre against similar industrial buildings. In regions like Vancouver, energy checklists confirming compliance with ASHRAE 90.1 or NECB standards can be particularly useful.

These certifications not only highlight a commitment to sustainability but also help reduce operational costs, making them a valuable consideration during tenant evaluations. Beyond energy savings, adopting strong environmental practices benefits waste management as well.

Recycling and Waste Management

Under triple net (NNN) lease structures, tenants typically bear the costs and responsibilities for waste management. This makes it essential to establish recycling and waste handling systems early in the planning process.

For manufacturing facilities dealing with hazardous materials, specialized waste systems are crucial to prevent environmental risks and protect neighbouring properties. Requesting a Hazardous Building Materials Report or Site Disclosure Statement can confirm the absence of contaminants like asbestos or lead, ensuring compliance with environmental regulations. If tenant improvements are planned, energy checklists for initial renovations can help maintain alignment with local green building policies.

BOMA BEST Sustainable certification evaluates waste management systems and provides a framework for implementing recycling programs. Since tenants are usually responsible for waste disposal costs in most industrial leases, efficient waste systems can significantly lower operating expenses.

Final Checklist for Manufacturing Space Tenants

With the technical and regulatory details covered earlier, this checklist helps confirm the last critical points before signing a lease.

Start by ensuring the property complies with zoning requirements. Review city zoning maps to verify that your manufacturing activities are permitted under local bylaws, whether the site is designated as Light Industrial (IL2/IL3) or Heavy Industrial (IH). If the previous tenant ran a different type of business, you might need a "Change of Use" permit. This could also mean additional building code requirements.

Next, have a licensed electrician inspect the electrical setup. This is especially important if your operations require three-phase power. Kelly Macsymic, Business Manager and Sales Associate at ICR Commercial Real Estate, highlights the importance of this step:

"The amount of power brought into a site varies. Most industrial sites have three-phase available even if it hasn't been brought to the building as of yet. Cost to transfer single- to three-phase can be significant."

Document every utility metre and system using GPS-tagged photos. Double-check that the ceiling heights, door sizes, and floor load capacities match the advertised specifications. Look out for features like floor drainage, as adding these later can be expensive.

Environmental risks should also be evaluated. A Hazardous Building Materials Report can confirm whether asbestos or lead is present, while a Site Disclosure Statement can identify potential soil contamination or remediation needs. If you’re planning tenant improvements, review energy standards like ASHRAE 90.1 or local greenhouse gas regulations to ensure compliance.

Complete all inspections and gather professional reports before committing to the lease. These steps will help avoid unexpected costs and ensure the space meets your operational needs.

FAQs

Who pays for required upgrades if the space isn’t compliant?

Who handles upgrades often comes down to the lease agreement. In many cases, it’s negotiable. Landlords might provide a Tenant Improvement Allowance to help cover costs, or tenants may need to handle the expenses themselves. Be sure to review your lease terms closely to clarify responsibilities and think about negotiating terms that work best for your situation.

What inspections should I complete before signing the lease?

Before committing to a manufacturing space lease, take the time to thoroughly inspect the property. Pay close attention to structural integrity, ventilation systems, electrical setups, plumbing, and safety measures. It's also crucial to confirm that the property adheres to the 2025 Canada Building Code standards for warehouse safety. These checks can uncover any problems that might affect the space's safety, usability, or compliance, giving you the chance to resolve them before signing the lease.

How do I estimate my future power and space needs?

To figure out your future power and space requirements, start by evaluating your operational needs. This includes areas like storage, office spaces, shipping and receiving zones, parking facilities, and room for possible expansion. Measure the square footage, ceiling height, and workflow layout to ensure they fit your equipment and inventory properly. Take a close look at your current and expected production levels, as well as the specifications of your equipment, to predict your power demands. Working with engineering or real estate professionals can provide valuable insights, helping you choose a space that supports your growth and aligns with your long-term plans.