Leasing a commercial space involves selecting a location that fits your business needs, budget, and future goals. To lease a space, assess your requirements, choose the right location, set a realistic budget, and carefully review the lease terms.
This guide will walk you through each step to help you make informed decisions and find the ideal space for your business.
1. Assess Your Business Needs
Define your space needs—offices, meeting rooms, storage, or retail space. Identify the must-haves versus optional features. For example, a storefront may be essential, but a break room with a kitchenette could be optional.
Think about your long-term growth. Will this space still work for your business in the next year?
2. Choose the Right Location
Choose a location with good foot traffic if you’re a retail shop or restaurant. For businesses needing deliveries or employee access, ensure parking and public transit are nearby. Consider the competition and complementary businesses. Don’t forget to check zoning laws to ensure the space suits your business.
3. Set a Realistic Budget
Beyond rent, account for utilities, maintenance, property taxes, and insurance. Clarify what’s included in the lease. Be prepared for a security deposit or lease guarantee.
4. Start Your Search
Search for listings on platforms like LoopNet, CoStar, or Crexi, or work with a commercial real estate broker like Fort McMurray Commercial Properties – The Lore Group – Coldwell Banker United for faster results and negotiation support.
5. Understand Lease Types
Understand the different lease types:
• Gross Lease: One flat rent; landlord covers most expenses.
• Net Lease: Rent plus additional costs (e.g., taxes, maintenance).
• Triple Net Lease (NNN): You cover most expenses.
• Percentage Lease: Base rent plus a percentage of revenue.
• Modified Gross Lease: Shared costs between landlord and tenant.
6. Inspect the Property
Before finalizing anything, inspect the property. Assess the building’s condition, including the HVAC system, plumbing, and electrical. Ensure the space meets accessibility and fire safety standards. Ask about past repairs or issues to avoid surprises later.
7. Review and Negotiate the Lease
Review the lease carefully—focus on rent, lease duration, renewal options, and any tenant improvements. Understand rent increase clauses and potential exit options, such as subleasing or early termination.
8. Seek Legal and Financial Advice
Have a real estate lawyer review the lease to catch any potential issues. Also, consult your accountant or financial advisor to ensure the lease fits within your business plan and cash flow.
9. Finalize the Lease and Move In
Sign the lease, pay your deposit, and plan for necessary modifications, including internet setup, signage, and utilities.
10. Manage the Lease and Plan Ahead
Track your lease terms and maintain good communication with your landlord. As your business grows, consider future space needs.
Conclusion
Leasing a commercial space is an important decision, but with the right planning and expert advice, it’s manageable. Need help with your lease or finding the perfect location? Fort McMurray Commercial Properties – The Lore Group – Coldwell Banker United, led by Susan Lore and Tristan Parker, is here to guide you.
Contact us today to find a space that fits your business goals.