Red flags in industrial leases: 2026 GTA guide
By Michael Law · Industrial Real Estate Broker, Lennard Commercial Realty
Discover the key red flags in industrial leases for 2026 in the GTA. Avoid costly mistakes and empower your leasing decisions today!
About Michael Law
Managing Partner and Industrial Real Estate Broker at Lennard Commercial Realty. Representing tenants and landlords across Toronto and the GTA for 15+ years. Michael specializes in GTA industrial real estate — connect with Toronto's leading industrial broker at mlawrealestate.com/industrial-broker-toronto.
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Read →Common Questions
What is a sale-leaseback in industrial real estate?
A sale-leaseback is a transaction in which an industrial property owner sells their building to an investor and simultaneously signs a long-term lease to remain in the property as a tenant. The seller unlocks the capital tied up in their real estate while retaining full operational use of the facility. The buyer acquires a tenanted investment property with immediate cash flow from a known occupant.
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Dock-to-grade ratio in industrial real estate refers to the number of dock-level loading doors relative to the building's floor area, typically expressed as one dock door per X,000 square feet. It is a key specification for distribution and warehousing tenants because it determines how many trucks can load and unload simultaneously and therefore the building's throughput capacity.
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Clear height in a warehouse or distribution centre refers to the usable vertical space from the finished floor to the lowest overhead obstruction — typically the bottom of the roof structure, sprinkler heads, or HVAC equipment. It is the single most important building specification for warehouse tenants because it determines how many racking levels can be installed and therefore how much product can be stored per square foot of floor space.
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