Open Storage Land: 10 Due Diligence Risks Buyers, Investors and Occupiers Often Overlook

Whether the site is being used for vehicle storage, plant hire, aggregate storage, container storage or wider logistics activities, buyers, investors and occupiers should be careful not to assume that a largely undeveloped site comes with fewer legal risks. Often, the opposite is true. Some of the most significant issues only emerge once detailed due diligence is underway.

1) Does the Planning Position Support the Intended Use?

One of the first questions is whether the site can lawfully be used for the purchaser's proposed operation. Even where some form of storage use already exists, increasing the volume of storage, HGV movements, operating hours or the nature of the activities carried out on the site may raise planning issues as this may be regarded as an intensification of use. Similarly, a purchaser may intend to use the site differently from the current occupier. Appropriate enquiries should therefore be made into the planning history of the site, any relevant planning permissions and any planning conditions affecting the site. Where the position is unclear, specialist planning advice may be required.  

2) Is the Existing Use Actually Lawful?

A common misconception is that long-term use automatically resolves planning concerns. In reality, a site may have operated in a particular way for many years without the benefit of the necessary planning permission. It may therefore be necessary to establish whether there is sufficient evidence to demonstrate a lawful existing use, whether a Lawful Development Certificate has already been obtained, or whether an application for one should be considered. This can be particularly important where future saleability, redevelopment potential or lender requirements are concerned. 

3) What Happened on the Site Before?

When carrying out commercial property due diligence on open storage land, one of the most valuable questions is often the simplest: what was here before? 

Many yards and industrial sites have historic uses involving fuel storage, waste operations, vehicle dismantling, engineering activities or manufacturing processes. Understanding the site's history is often just as important as understanding how it is being used today. 

4) Could Contamination Become Your Problem?

Environmental liability is often one of the most overlooked issues when buying industrial land. 

A clear environmental search can be reassuring, but it should not always be treated as the end of the enquiry. Depending on the site's history and proposed use, further environmental investigations may be appropriate. Former industrial activities, fuel storage, waste operations and other historic uses can sometimes give rise to contamination concerns which are not immediately apparent from a site inspection alone. Environmental issues can affect value, marketability, lender appetite, redevelopment potential, remediation costs and, in some cases, future liability. 

5) Are Adequate Access Rights in Place?

Open storage sites are often heavily dependent on vehicle access. 

The legal question is not simply whether access exists, but whether the rights benefiting the site are sufficient for the intended operation. Due diligence should therefore establish whether there are adequate rights of way, suitable HGV access arrangements, any shared access routes, maintenance obligations or third-party controls affecting access to the site. In practice, a site's value and usability can be significantly affected if access arrangements are unclear or inadequate for the intended use. 

6) Are Services and Infrastructure Available?

Some open storage land benefits from extensive infrastructure. Other sites have very limited services. 

Where future expansion or operational intensification is contemplated, due diligence should establish the availability and capacity of electricity, water, drainage and telecommunications connections. Utility constraints can significantly affect both operational viability and redevelopment potential. 

7) Do the Title Documents Restrict What You Can Do?

Title restrictions are often overlooked where a site appears to be operating without issue. 

Historic restrictive covenants may limit industrial activities, storage uses, development opportunities or the ability to alter the site. These restrictions can become particularly important where the intention is to expand operations, redevelop the land or increase activity levels. 

8) Will a Lender Be Comfortable With the Site?

Where acquisition finance is involved, lenders often scrutinise open storage land closely. 

Particular areas of concern may include environmental risk, planning compliance, access arrangements, marketability and future value. Issues that may appear manageable from an operational perspective can sometimes become a significant concern for a lender, which is why potential funding requirements should be considered early in the transaction. 

9) Is the Site Suitable for Future Redevelopment?

Many purchasers acquire open storage land not only for its current use but also for its future redevelopment potential. 

However, redevelopment potential should not be confused with redevelopment certainty. Planning constraints, environmental issues, access limitations, service capacity and title restrictions can all affect whether a future development project is viable. 

10) Have You Properly Assessed and Allocated the Risk?

Identifying a risk does not necessarily mean a transaction should not proceed. 

The real question is whether sufficient information has been obtained to understand the nature and extent of the risk, and whether that risk is acceptable from a commercial perspective. Where issues are identified, parties may be able to manage them through further investigations, contractual protections, price adjustments, or, in some cases, contaminated land indemnity insurance. The aim of due diligence is not to eliminate every risk, but to ensure that risks are properly understood, appropriately allocated and reflected in the terms on which the transaction proceeds. 

Final Thoughts

Open storage land continues to attract strong interest from investors, developers, occupiers and operators across the industrial and logistics sector. 

However, the fact that a site contains few or no buildings should not lead purchasers to assume that an acquisition is straightforward. Planning status, environmental issues, access arrangements, infrastructure and title constraints can all have a significant impact on how a site can be used, developed, financed and ultimately valued. 

The most successful acquisitions are often those where these issues are identified and investigated early. For buyers, investors and occupiers alike, thorough due diligence is not simply about uncovering risk. It is about understanding the asset, making informed commercial decisions and ensuring the site is capable of supporting its intended use, both now and in the future. 

Open Storage Land: frequently asked questions

What is open storage land?

Open storage land generally refers to land used primarily for the storage of goods, vehicles, machinery, containers, materials or equipment rather than permanent buildings. Examples include storage yards, vehicle compounds, contractor depots and logistics sites. 

Do you need planning permission for open storage? 

Possibly. Whether planning permission is required will depend on the planning history of the site, the nature of the use and whether there is already a lawful planning use in place. Some storage and distribution activities may fall within Class B8 use, but the planning position should always be assessed on a site-specific basis. 

Who is liable for contaminated land?

Liability will depend on the circumstances and the operation of the contaminated land regime under Part IIA of the Environmental Protection Act 1990. Responsibility will generally fall first on those who caused or knowingly permitted the contamination. Where those persons cannot be identified, liability may in certain circumstances pass to the current owner or occupier. Specialist advice should be obtained where contamination is suspected. 

What due diligence is needed when buying a yard or industrial site?

Typical due diligence will include reviewing title documents, carrying out searches, investigating planning status, assessing environmental risk, checking access rights, establishing service availability and identifying any restrictions that could affect future use or development. The scope of investigations should reflect the nature of the site and the purchaser's intended use.

Next reads

• Powering Development: Wayleave Agreements, Deeds of Easement and Grid Capacity in Industrial and Logistics Property

• Industrial Property and Contamination Risk: Why a Clear Environmental Search May Not Tell the Whole Story

Commercial Property law advice

Our Commercial Property team advises investors, landlords and occupiers on industrial and logistics property transactions, including acquisitions, disposals, lettings, due diligence and risk allocation, across London and the south-east. To discuss your circumstances, call 020 8858 6971 or email commercialpropertyenquiries@grantsaw.co.uk 

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Disclaimer 

This article is for general information only and is not legal advice. Laws and guidance change and outcomes depend on facts. If you need advice on your situation, please contact us. Grant Saw Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority. 

Last updated 30 September 2026