Well if its "commercial" space the regulations for propane tank storage may be different than for "residential". NFPA regulations for residences states no tanks over 1 pound allowed inside and no more than 2 tanks at any time....
Regardless of what the zoning is, the absolute safest situation is for the tank to be OUTSIDE. Keeping tank outside eliminates many possible violations of rules/codes. It's very simple to have tank outside (in secure enclosure if necessary), and run steel or other acceptable metallic piping into studio area. NFPA provides that you can have propane piped in at pressures up to 20psi. By having fixed, medium pressure regulator at tank (outside) this allows you to have additional adjustable regulator at location where torch is setup in studio.
You state there is no restrictions on site you are considering. Is this the landlords statement or is it city fire inspectors statement?... I am willing to bet fire officials and city building code people will have definite ideas on having a tank indoors. Especially if it is a "living" area on second floor.
Dale
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San Francisco - A Few Toys Short of a Happy Meal
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