Commercial leasing can be overwhelming and complex for anyone new to the process. How does commercial leasing work? What can you expect as you dive into leasing industrial, retail, or office space for your business?
To keep it simple, we’ve outlined three standard phases of the leasing process:
- Identifying your business needs
- Negotiating the lease
- Moving into your new space
Please note that each leasing process often differs from the next. The phases we discuss below might change according to your situation.
Phase 1: Identifying Your Business Needs
The first phase of commercial leasing involves identifying your needs and desires. Every business is different, so finding the right place for you is an essential step. Before signing any dotted lines, you should survey your options and look for the perfect commercial space.
As you determine the best place for your business, consider these factors:
- Budget. Monthly rates depend on various factors, including square footage, utilities, and tenant improvements. Knowing what you can afford will help narrow your options.
- Location. You’ll want to determine the best place for your employees, customers, and industry region. A strategic location could be the difference between your business succeeding or failing down the line.
- Type of space. With leasable business properties, you have several options. Your kind of business will help determine whether you need a retail, industrial, or office space.
Once you know what you need, you can choose the best property to rent. You’ll want to visit your top picks, talk to listing agents and representatives, compare pricing, communicate with property owners, and research how different leases work.
Phase 2: Negotiating the Lease
Negotiation is the second phase of the commercial lease process. During this time, you’ll choose your type of lease (e.g., triple, double, or single net lease) and confirm the agreement terms. Common areas of the lease to think about include:
- Rates
- Durations
- Concessions
- Reductions/increases
- Renewals
As you negotiate your lease, you’ll need to demonstrate financial reliability and trust with the owner. Procuring financial documents and proving your ability to pay rent will help the process go much smoother.
How does commercial leasing work timewise? Completing a commercial lease can take several days, a few weeks, or even months. Complex leases will take longer to finish than more straightforward ones.
Phase 3: Moving Into Your New Space
Now that you’ve completed the lease, it’s time to move into your new space! This step can be exciting and frustrating for many business owners. Your move-in date may change if significant property improvements are necessary.
Do You Need Professional Help With Your Commercial Lease?
Renting a new commercial space for your business is a big deal. However, it can quickly get stressful and overwhelming. Contact a team of property management professionals if you need help with any aspect of your leasing process.
Are you wondering, “How does commercial leasing work?” At SWFL Commercial Group, we have the answers. Our commercial property management experts will provide top-quality leasing services, advice, and support when you call (239) 510-3606.
