What You Need To Know When Leasing Commercial Real Estate

commercial real estate knowledge is powerWhen leasing commercial real estate knowledge is power so it’s important that you have ALL the right information before signing the lease contract.  Whether you are leasing office, retail or industrial space there are a lot of questions that you will need answers to before you are able to make an intelligent decision.

For the most part your needs will be the same regardless of whether you are leasing office, retail, and warehouse space.  However each type of commercial real estate will have a few different characteristics that you need to understand and have info on.  Below are a few things to consider when leasing the different types of commercial real estate.

All Types of Commercial Real Estate

  1. Ideal location – Where do you want to be located?
  2. Size (in SF) Space – How much space do you need?
  3. Timing – What date do you want to be open for business?
  4. Rental Budget – What is the maximum you can afford to pay in Rent?
  5. Lease Rates – How are they quoted? per year or per month?  What are the operating expenses (if any)?
  6. Security Deposit – How much will be required at lease signing?
  7. Parking – How many parking spaces do you need?
  8. Expansion space – Do you plan on growing and need predefined space to grow into in the future?
  9. Lease term –  What is the longest lease term you can do?
  10. Layout – How do you want your space to be laid out? (e.g. # of offices, break area, conf room, etc..)
  11. Services & Amenities – What services and amenities do you need or want to be nearby? (e.g. deli, fitness room, shopping, etc.)

Office Space

  1. After hours HVAC – Do you work late hours and need the AC turned on?
  2. Usable vs Rentable Space – How much of the space is usable vs rentable?
  3. Common area (aka add on factor) – What % of the building is common area?
  4. Electric & Janitorial – Who pays?

Warehouse Space

  1. HVAC – Do you need air conditioning and heating in the warehouse?
  2. Loading area – Do you need dock high, semi dock, or grade level loading area?  How many do you need?
  3. Yard – Do you need a fenced in yard to park cars and equipment?
  4. Layout – What % of the space do you want to be office vs warehouse?
  5. Ceiling Height – How high do you need the ceilings to be?

Retail Space

  1. Percentage Rent – Does the landlord charge a percentage rent?
  2. Tenants – What other tenants are in the retail center?

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