Industrial property leasing is a specific area of real estate law that covers the rental of manufacturing spaces, warehouses, logistics centers, and industrial land plots. With the growth of the manufacturing and logistics sectors in Georgia, demand for such facilities is increasing. However, industrial leasing differs significantly from standard commercial leasing. Crucial importance is attached to factors such as property zoning, environmental regulations, utility capacities, and access to transport infrastructure. Mistakes in the lease agreement or property selection can lead to the suspension of production processes and substantial fines from state authorities.
What Does Industrial Leasing Service Cover?
Specialized lawyers on the Legal.ge platform offer comprehensive services related to leasing industrial facilities, including:
- Zoning and Permit Checks: Determining whether the specific property status complies with the planned industrial activity (e.g., heavy industry, warehousing).
- Defining Environmental Liability: Clearly delineating in the contract who is responsible for soil contamination, waste management, and ecological damage.
- Agreeing on Infrastructure Conditions: Defining obligations for providing electricity capacity, water supply, sewage, and access roads.
- Long-term Lease Registration: Industrial investments are usually long-term, so registering the agreement in the Public Registry is necessary for stability guarantees.
- Free Industrial Zone (FIZ) Regulations: Consultation on operating rules and tax benefits in special economic zones (e.g., Poti, Kutaisi).
Common Real-World Scenarios
During industrial leasing, businesses often face the following challenges:
- Lack of Capacity: After launching the plant, it turned out that the power grid could not handle the machinery load, leading to a dispute over the cost of installing a new transformer.
- Environmental Fines: Old contamination (e.g., oil products) was discovered on the territory, and responsibility was placed on the new tenant due to ambiguity in the contract.
- Access Roads: Third parties blocked the access road to the factory, which passes through a private plot, due to the lack of an easement.
- Designated Use: It turned out that the land plot is designated for agricultural use, and operating a factory on it is a violation of the law.
- Fire Safety: The Emergency Management Service fined the facility for violating safety norms, and the landlord and tenant cannot agree on whose obligation it is to install the system.
Georgian Legal Framework
Industrial leasing is regulated by the Civil Code of Georgia, but the Environmental Assessment Code and the Law of Georgia on Environmental Protection are also critically important. Certain types of activities require an Environmental Impact Assessment (EIA). The Code of Spatial Planning and Construction is also relevant for zoning issues. Regarding taxation, the Tax Code of Georgia regulates VAT and property tax issues. In special zones (FIZ), the Law on Free Industrial Zones applies.
Step-by-Step Service Process
Collaboration with Legal.ge experts involves:
- Legal Due Diligence: Checking the status of the land and building, zoning, and encumbrances.
- Integration of Technical Conditions: Detailed specification of technical parameters (power, water, gas) and obligations in the contract.
- Contract Drafting: Preparing a specific industrial contract.
- Permits and Licenses: Consultation on obtaining necessary permits to start activities.
- Execution: Signing the contract and registering it in the Public Registry.
Why Choose Legal.ge?
Industrial leasing requires not only legal but also technical and environmental knowledge. Legal.ge gives you the opportunity to connect with lawyers who understand the specifics of the industrial sector. They will help you minimize risks so that you can focus on production and business development without legal problems.
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