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Truck Yard Leases: What to Put in Writing

By Javier Brown, Commercial Real Estate Agent, MGR Real Estate · DRE #01755491

The Inland Empire sits between the ports, the rail yards and the freeways that move freight across the country, so truck yards and industrial outdoor storage (IOS) lots are always in demand. Whether you own a yard or you're a trucking company looking for one, a yard lease has risks that a typical warehouse lease doesn't. The land is the product, and how it can be used is controlled by the city.

Use this checklist before you sign, whether you're the owner or the tenant.

1. Zoning and permitted use: confirm it first

This is the most important item. Truck parking, trailer storage, container storage, equipment yards and contractor yards are allowed only in certain zones, and many Inland Empire cities have tightened their rules. A yard that was used for trucks for years isn't automatically legal for that use today.

Before signing:

• Call or visit the city planning department with the parcel number (APN) and describe the exact use.
• Ask whether a conditional use permit (CUP), site plan review or other approval is needed.
• Ask about requirements such as paving, landscaping, fencing, lighting, stormwater controls and screening.

Put the exact use in the lease, for example "parking and staging of tractors and trailers, no repair or fueling." A tenant should ask for a contingency allowing it to cancel if the use isn't approved.

2. Surface: paved, gravel or dirt?

The surface affects cost, dust, drainage, and what the city will allow.

• Paved (asphalt or concrete): best for heavy trucks, but expensive to repair.
• Gravel/base: common for IOS, but may not meet city standards.
• Dirt: cheapest, but often not allowed for truck parking and creates dust and mud.

The lease should say who maintains the surface and who pays to fix damage. Heavy equipment can break up pavement quickly.

3. Access, gates and turning room

• Can a full-size tractor-trailer get in and out safely, and turn around?
• Are there width or weight limits on the driveway?
• Does access cross another owner's property? If so, confirm there's a recorded easement.
• Are there hours-of-operation limits from the city or neighbors?

Write down the number of gates, who controls them, and whether the tenant can install a card reader or camera.

4. Fencing, lighting and security

Theft is a real concern for yards. The lease should say:

• Who provides and maintains the fence and gates.
• Whether lighting is included and who pays the electric bill.
• Whether the tenant can add cameras, guards or other security.
• That the landlord isn't responsible for stolen equipment, unless agreed otherwise, which is why the tenant's insurance matters.

5. Utilities and any building

Many yards include a small office, a modular, or a shop. Check:

• Water, sewer and power: what's available, and is it metered separately?
• Restrooms: needed for drivers and sometimes required by the city.
• Condition of any building: is it permitted? Unpermitted modulars can cause problems.

6. Environmental protections for both sides

Trucks and equipment can leak oil, fuel and fluids. A good yard lease addresses:

• No fueling, washing or major repairs unless specifically allowed.
• Baseline condition: many owners take photos or do a basic environmental check at move-in so both sides know the starting condition.
• Cleanup responsibility: the tenant is usually responsible for contamination it causes.
• Stormwater: who handles compliance if the city or state requires it.

7. Number of trucks and parking layout

Spell out how many tractors, trailers or pieces of equipment are allowed, and whether there's a striped layout. Too many vehicles can violate permits and create safety issues. If the yard is shared, mark the boundaries clearly.

8. Rent, term and expenses

Yard rent is often quoted per acre per month or per square foot of land per month. Also cover:

• Who pays property taxes and insurance (often passed through to the tenant on a net lease).
• Annual increases.
• Term and renewal options. Tenants want stability; owners may want flexibility if they plan to develop or sell the land later.
• Termination rights if the owner sells or redevelops.

9. Insurance and indemnity

The tenant usually carries general liability and auto liability coverage and names the owner as additional insured. Confirm limits match the operation. An owner should also confirm its own property policy allows the use.

10. Move-out condition

Define what "returned in good condition" means: all vehicles, trailers, containers, debris and tires removed, surface repaired, and any contamination cleaned up. Abandoned trailers and junk are among the most common disputes at the end of yard leases.

For yard owners: is leasing the best move?

Some owners lease for steady income; others are better off selling, or leasing short-term while planning a sale. If you own land or a yard, my free highest and best use review and truck yard owner page explain the options.

Frequently Asked Questions

Can I park trucks on any industrial lot?

No. Truck and trailer parking is a specific use that many cities limit to certain zones or require a permit for. Always confirm with the city first.

Is a short-term yard lease possible?

Yes. Short terms, or month-to-month after an initial term, are common for yards, especially when the owner has long-term plans for the land.

Who fixes the pavement?

Whoever the lease says. Write it down, because heavy trucks can cause significant damage.

What's the difference between a truck yard and IOS?

A truck yard is mainly for parking tractors and trailers. IOS is a broader term covering truck parking, equipment, containers and material storage, usually with little or no building.