A food production or commissary space is an industrial facility with food-safety rules layered on top: floor drains, cold storage, heavy power and water, wastewater handling, and zoning that actually permits manufacturing. Those requirements drive the build-out and decide whether the space can be licensed, so they belong at the front of the review. For general terms, see the commercial lease checklist; for food-service specifically, the restaurant lease checklist.
This is an observational checklist. Each item names what to find in your lease and why it matters — it does not tell you what to decide. Confirm what your document actually says for each point, and treat any protection that is simply absent as information about where your exposure sits. The legal judgment about what to do with what you find is yours.
1. The Zoning, Code, and Licensing Terms
These decide whether the space can be used for production at all.
- Zoning for production. Confirm the site is zoned for food production or light manufacturing, not just retail or commercial, and which party verifies it.
- Food-safety licensing contingency. Find whether the lease is contingent on health-department, FDA, or USDA approval for your process, and what happens to rent if it is delayed.
- Certificate of occupancy and fire suppression. Confirm the certificate of occupancy supports the use and who is responsible for fire suppression and code upgrades.
2. The Infrastructure and Build-Out Terms
Production puts industrial demands on the space.
- Floor drains and washable surfaces. Confirm the space has (or the build-out will add) floor drains and food-grade washable surfaces, and who pays.
- Cold storage and refrigeration. Find which party installs and maintains walk-in coolers, freezers, and refrigeration capacity.
- Power, water, and wastewater. Confirm the electrical capacity (often three-phase), water supply, and any grease or wastewater pretreatment the process requires.
- Ventilation, floor load, and restoration. Find responsibility for ventilation, floor load for equipment, and the surrender condition. The restoration cost estimator gives a range.
3. The Operating Terms
How the facility runs is partly set by the lease.
- Loading and hours. Confirm loading-dock access and the hours permitted for production and deliveries.
- Waste and pest control. Find which party is responsible for waste handling, grease disposal, and pest control, all of which carry food-safety weight.
- Permitted use scope. Confirm the permitted-use clause covers your specific process and any future product lines.
4. The Money and Liability Terms
Rent is more than base rent, and a build-out this large raises the stakes.
- Lease structure, CAM, and free rent. Confirm whether the lease is gross or triple-net (NNN), whether CAM is capped, and whether the free-rent period covers a long build-out. The CAM charges calculator estimates pass-throughs.
- Personal guaranty. Confirm whether you are personally guaranteeing the lease and whether it is capped. An unlimited personal guaranty puts your own assets behind the full remaining lease value; negotiated leases commonly include a cap, time limit, or burn-off. The personal guaranty calculator sizes the exposure.
- Environmental and assignment. Find who bears responsibility for any contamination or wastewater issues, whether the indemnity is one-way, and whether you can assign the lease on a sale.
5. The Dispute Terms
These decide the outcome if the relationship goes wrong.
- Default, cure, and landlord mitigation. Confirm how default is defined, the cure period, and whether the landlord must make reasonable efforts to re-let after a default.
- Attorney fees, jury waiver, and venue. Confirm whether fee-shifting is one-way or mutual, whether you are waiving a jury trial, and which state’s law governs.
How to use the result: Mark every item you cannot answer from the lease text. The unanswered items are your shortlist for questions, negotiation, or counsel review — and a missing protection is itself a finding, not a blank to ignore. Related reading: food production and food and beverage lease risk, and the personal guaranty guide.
Frequently Asked Questions
What should I check in a food production lease before signing?
Start with whether the space can legally be used for production: zoning for food production or light manufacturing, a food-safety licensing contingency (health department, FDA, or USDA), and a supporting certificate of occupancy. Then confirm the infrastructure (floor drains, cold storage, power, water, and wastewater), the build-out, the personal guaranty, environmental responsibility, and restoration. Confirm each against the lease text before signing.
Does a commercial kitchen or food production space need special zoning?
Usually yes. Food production and light manufacturing often require zoning distinct from retail or general commercial, and a space marketed as flex or commercial may not permit production. Confirm the zoning and whether a food-safety licensing contingency protects you if approval is delayed or denied.
Who pays for floor drains, cold storage, and three-phase power?
It depends on the lease. These are major build-out items in a production space, sometimes offset by a tenant improvement allowance. Confirm who installs and maintains the drains, refrigeration, and electrical capacity, and who must remove or restore them at lease end.
Should a food production lease be reviewed by an attorney?
Food production leases combine zoning and food-safety contingencies, a heavy industrial build-out, environmental and wastewater questions, and a personal guaranty, so they are commonly reviewed by counsel before signing. A checklist and an automated scan can tell you where the exposure sits; the legal judgment about what to do with that information is yours.