Common splits in industrial leases
| Item | Often the landlord's | Often the tenant's |
|---|---|---|
| Roof structure and shell | Structure, roof replacement, exterior walls | Sometimes routine roof maintenance under a net lease |
| Fire sprinkler system | System ownership and major repairs | Inspections or maintenance under some leases |
| Office build-out | Base building finishes provided at lease start | Improvements the tenant added later |
| Equipment and inventory | Rarely | Usually, including insurance |
| Property insurance on the building | Often carried by the landlord, cost passed through | Contents, business income and liability coverage |
| Emergency mitigation | Building-related damage | Tenant's own property and improvements |
Why this gets complicated
Industrial leases in the Denver metro are often triple net, meaning the tenant pays a share of taxes, insurance and maintenance in addition to rent. That can blur who should call the restoration provider, who signs the work authorization, and whose insurer pays for which part. In a multi-tenant flex building, a sprinkler break in one unit can damage a neighbor's inventory, adding another tenant and another policy.
Most leases require the tenant to notify the landlord promptly of damage and limit who can perform work on the building. Some require landlord approval of contractors or let the landlord choose them. Emergency steps to stop damage are usually expected regardless, but reconstruction of the shell or base building is often under the landlord's control.
Read the casualty, repair, insurance and alteration sections of the lease, and send written notice to the landlord or property manager as soon as people are safe. If the lease is unclear, a real estate attorney can help; this guide is not legal advice.
Who should act first?
- IfWater is actively damaging the building and the landlord cannot be reachedThenTake reasonable emergency steps to stop the damage and document them, then notify the landlord in writing as soon as possible.
- IfDamage is limited to tenant inventory and equipmentThenThe tenant usually arranges cleanup and reports to its own insurer, while still informing the landlord.
- IfDamage affects the roof, structure or base buildingThenExpect the landlord to direct repairs; coordinate access so operations and inventory are protected.
- IfAnother tenant's space is the source of the waterThenNotify the landlord and that tenant, photograph the source, and report to your own insurer.
Questions to ask the landlord or property manager
- Do you have a preferred restoration provider, and does the lease require using them?
- Who signs the work authorization for each part of the job?
- Which insurer is handling the building portion, and who is the adjuster?
- How will rent be handled if part of the space is unusable?
- Who decides on the scope and finish level for the office repairs?
General information for Commerce City, not a quote or professional advice. In an emergency, call 911.