Frequently Asked Questions

1 What clear height is required?

10–12 m clear height suits racking and forklifts.

2 How much power load is needed?

Standard 50–100 kVA with backup generator.

3 Is a transformer included?

Tenant installs and maintains the transformer.

4 Difference between bare shell and plug‑and‑play?

Bare shell is empty; plug‑and‑play is ready to use.

5 Can structural changes be made?

Yes, with landlord approval and restoration terms.

6 What floor load should I check?

5–6 MT/sqm is standard for warehouses.

7 How to verify Fire NOC?

Ask for the issued Fire NOC before signing.

8 Typical lock‑in period?

3–5 years with 15% escalation every 3 years.

9 Are pollution approvals transferable?

No, each tenant must obtain fresh approvals.

10 Standard escalation clause?

15% rent increase every 3 years.

11 How is CAM charged?

  Only if the lease explicitly permits subletting.  

 

12 Can I sublease space?

Only if the lease explicitly permits subletting.

13 Labour availability factors?

Check transport access and local workforce supply. 

14 Is water treatment required?

Not for warehouses; only factories need ETP/STP. 

15 How to calculate occupancy cost?

Base rent + GST + CAM + utilities + fit‑out.  

16 What documents prove industrial use?

CMDA/DTCP approval and completion certificate.  

17 Can converted land be leased?

Yes, if legally converted to industrial use.  

18 How does GST apply?

GST is charged over and above monthly rent.  

19 Standard security deposit?

6–12 months’ rent depending on lease term.

20 Can I negotiate rent‑free fit‑out?

Yes, balance it against who funds improvements.  

21 Process for warehouse licence?

Register lease, then apply for approvals.  

 

22Hazardous storage allowed?

Requires separate PESO licence, not just lease.  

 

23 Ideal bay spacing?

One dock per 5,000 sqft with 13 ft shutters.  

 

 

24Is FM2 flooring necessary?

Yes, FM2 spec is standard for warehouses. 

25Ventilation and lighting standards?

Turbo ventilators and skylights for 150 lux minimum.

26 Notice period before vacating?

3–6 months depending on lease terms.  

27What happens to tenant fixtures?

Tenant restores premises unless agreed otherwise.  

 

28 Can I get built‑to‑suit?

Yes, BTS warehouses are offered on long leases.  

29 Typical rental range?

₹20–35/sqft/month in Chennai corridors.  

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30 How to check power backup?

Verify EB card load and generator capacity.  

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31 Is stamp duty applicable?

Yes, 1–4% depending on lease term.  

 

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32 Registration requirements?

Mandatory beyond 11 months; approvals need it.  

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33Does highway proximity affect rent?

Yes, better connectivity raises rental rates.

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34 Can warehouses be leased in SEZ?

Yes, SEZ units get tax benefits but longer lock‑ins..

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35 What landlord due diligence is needed?

Verify title, approvals, and encumbrances.  

  

 

 

36 What landlord due diligence is needed?

Verify title, approvals, and encumbrances.  

  

 

 

37 Renting vs building cost?

Rent is opex; building is capex with RoI.  

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38 Tax implications of rent vs own?

Rent attracts GST/TDS; ownership taxed at sale

 

  

 

 

39 Can lease include purchase option?

Usually renewal only; BTS may allow purchase.  

  

 

 

40 Environmental clearances needed?

Green/Orange/Red category sets requirements.  

 

 

41 How is drainage handled?

Roof gutters to storm drains or harvesting pits.  

 

 

 

42 Maintenance split?

Owner pays property tax; tenant pays utilities.  

 

 

 

43 Structural compliance check?

Demand structural certificate to NBC norms.  

 

 

 

44 Insurance coverage needed?

Tenant insures inventory and machinery.  

 

 

 

 

45 Labour law compliance?

Requires registered lease as address proof.

46Estate vs private park?

Government estates allot land; private parks rent sheds.  

47How quickly can occupation happen?

Same‑day inspection and closure possible.  

 

48Role of tenant‑rep broker?

They negotiate terms and access off‑market deals.  

 

49Can rent be graded by ramp‑up?

Possible, but standard is 15% every 3 years.  

 

 

50Can rent be graded by ramp‑up?

Possible, but standard is 15% every 3 years.  

 

 

51Exit liability mid‑term?

Deposit forfeiture plus restoration and penalties.  

 

 

52Plug‑and‑play options?

Ready‑to‑use with racking, offices, and MHE.

 

 

53Can power load be enhanced?

Yes, via TANGEDCO feasibility study.  

 

 

54 Utility transfer process?

Tenant takes EB in own name; water split by lease.  

 

 

55 Utility transfer process?

Yes, via TANGEDCO feasibility study.  

 

 

 

56 Can power load be enhanced?

Tenant takes EB in own name; water split by lease.  

 

 

57 Are pre‑leased assets available?

Yes, yielding 7–10% RoI with appreciation. 

 

 

58Worker accommodation norms?

Focus on transport access and canteen/restrooms.