Factory Space To Rent: What To Look For Before You Sign The Lease

By Author: Horizon Consultants
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Finding the right business space to rent can be a turning point for your business whether you’re scaling up manufacturing, expanding warehousing, or launching a new product line. And with industrial hotspots like Andheri East, Bhiwandi, and Navi Mumbai becoming increasingly attractive for logistics and production, businesses are actively seeking flexible, scalable spaces.

But renting factory space isn’t just about picking a large building. There are critical factors to consider before signing the lease factors that could impact your operational efficiency, legal safety, and long-term costs.

As experienced commercial property consultants, we’ve put together this checklist to help you make the right decision.
1. Location, Connectivity & Zoning

The location of your factory plays a major role in transportation costs, employee convenience, and compliance.

a. Proximity to suppliers, transport hubs, and markets
Factories in Andheri East benefit from excellent access to the Western Express Highway, airport, and metro lines making it a strong contender for city-based operations.
b. ...
... Industrial zoning and compliance
Ensure the space is officially designated for industrial use. Renting a space in a residential or mixed-use zone may lead to legal complications or shutdowns.

2. Infrastructure & Utilities

a. Power supply & backup: Check the sanctioned load and availability of 3-phase power, especially for machinery-heavy operations.
b. Water supply: Essential for certain manufacturing units to check quality and reliability.
c. Waste disposal system: Verify if industrial waste management complies with local norms.

3. Size, Layout & Expandability

Not all large spaces are efficient. The layout should support your workflow be it assembly line production, packaging, or storage.

a. Look for clear height, pillar spacing, and entry/exit accessibility for goods movement.
b. Consider future expansion: can adjoining units be rented later if you scale?
c. Ensure loading/unloading bays, ramps, and doors are suitable for your equipment and vehicle types.

4. Safety, Fire Compliance & Insurance

Factories must adhere to strict safety codes. Ignoring these can result in legal action, employee hazards, or insurance denial.

a. Ensure the facility has proper fire exits, functional fire-fighting equipment, and a valid fire NOC.
b. Inspect the building’s structural integrity.
c. Ensure the landlord has insurance and find out if you need additional coverage for your business assets.

5. Lease Terms & Clauses

This is where many tenants make costly mistakes. Make sure a legal expert reviews the lease agreement before you sign it.

a. Lock-in period: Are you tied in for longer than you’re comfortable with?
b. Rent escalation clause: Be aware of the annual rent escalation rate.
c. Maintenance and repair responsibilities: Clarify who handles what.
d. Subletting clause: Important if you plan to share the space.

6. Accessibility for Workers and Logistics

Employee commute and logistics flow are often overlooked. Andheri East, for example, is highly sought after for office space for rent in Mumbai because of its ease of access from multiple suburbs.

a. Is public transport available nearby?
b. Is there sufficient parking for staff and trucks?
c. Are there congestion issues in the area that could delay deliveries?

Related Read: Commercial Real Estate ROI: How to Calculate and What to Expect in Today’s Market(https://horizonconsult.in/calculate-real-estate-roi/)

Work With Experienced Commercial Property Consultants

Finding factory space to rent isn’t like browsing residential rentals. Every decision affects your bottom line. That’s why working with a trusted commercial property consultant(https://horizonconsult.in/) in Mumbai makes all the difference.

From shortlisting compliant properties to negotiating better lease terms, a professional can help you avoid costly pitfalls — and save time.

Looking for office space for rent in Andheri East Mumbai or industrial properties tailored to your business model? Let our expert team help you find the perfect fit — no guesswork, no wasted time.