The 10-step process for renting commercial space
The opinions expressed by Entrepreneurs contributors are their own.
If you are new to commercial leasing and renting commercial space for the first time, here is an overview of the commercial leasing process.
1. Find a locationDetermine the demographic you want to reach and find an area that caters to that demographic. You will then want to research the market considering the competition in the area and how your business will differentiate itself.
When analyzing your potential locations, you need to look at the costs: I recommend creating a spreadsheet where you put all of your costs associated with each location you are considering. You can now do a side-by-side comparison of different sites with a cost spreadsheet.
Related: How Your Business Can Be Its Own
2. Visit with your general contractorOnce you have visited all the locations and analyzed the costs, you will visit the locations with your general trade contractor. You will want your general contractor to assess the condition of the walls, floors, roof and foundation to ensure they are in good condition. Additionally, check the availability and condition of electrical, plumbing, and HVAC systems to ensure they are suitable for the intended use. Finally, if you need gas, you'll want to make sure the gas is currently on the premises.
Make sure your general contractor assesses the accessibility of the space. Ask your general contractor if the property meets American With Disabilities (ADA) requirements.
After your visit with your general contractor, if you wish to submit a bid, ask your general contractor for a quote. This estimate will allow you to assess the cost of any necessary repairs or renovations.
Related: How to Start an Airbnb Business Without Owning Property
3. Write and submit a rental offerIf you do business with a real estate broker, he or she can assist you in drafting your rental offer. You will want to ask your realtor for comps before letting them know the rental rate you want to offer. Remember that when looking at comps, you need to look at the big picture. Landlords often give tenants a cash allowance and free rent to get higher rent.
After reviewing the compositions, determine your budget. Decide how much you will pay for rent, security deposit and other fees. Also decide what length of lease is right for you. Currently, you or your real estate broker are in the best position to prepare a Letter of Intent, often referred to as a Letter of Intent. Your letter of intent should outline the proposed terms, including the length of the lease, amount of rent, security deposit, and other pertinent details.
4. Wait for a responseThis part is the hardest for many of my clients because once the ball is out of our court, it can be hard to know when it will come back. If you seem too anxious, it will affect your ability to negotiate.
5. Examine and negotiateOnce you have received the response from the owner, you can either continue your negotiations or move on to another property. Please n...
The opinions expressed by Entrepreneurs contributors are their own.
If you are new to commercial leasing and renting commercial space for the first time, here is an overview of the commercial leasing process.
1. Find a locationDetermine the demographic you want to reach and find an area that caters to that demographic. You will then want to research the market considering the competition in the area and how your business will differentiate itself.
When analyzing your potential locations, you need to look at the costs: I recommend creating a spreadsheet where you put all of your costs associated with each location you are considering. You can now do a side-by-side comparison of different sites with a cost spreadsheet.
Related: How Your Business Can Be Its Own
2. Visit with your general contractorOnce you have visited all the locations and analyzed the costs, you will visit the locations with your general trade contractor. You will want your general contractor to assess the condition of the walls, floors, roof and foundation to ensure they are in good condition. Additionally, check the availability and condition of electrical, plumbing, and HVAC systems to ensure they are suitable for the intended use. Finally, if you need gas, you'll want to make sure the gas is currently on the premises.
Make sure your general contractor assesses the accessibility of the space. Ask your general contractor if the property meets American With Disabilities (ADA) requirements.
After your visit with your general contractor, if you wish to submit a bid, ask your general contractor for a quote. This estimate will allow you to assess the cost of any necessary repairs or renovations.
Related: How to Start an Airbnb Business Without Owning Property
3. Write and submit a rental offerIf you do business with a real estate broker, he or she can assist you in drafting your rental offer. You will want to ask your realtor for comps before letting them know the rental rate you want to offer. Remember that when looking at comps, you need to look at the big picture. Landlords often give tenants a cash allowance and free rent to get higher rent.
After reviewing the compositions, determine your budget. Decide how much you will pay for rent, security deposit and other fees. Also decide what length of lease is right for you. Currently, you or your real estate broker are in the best position to prepare a Letter of Intent, often referred to as a Letter of Intent. Your letter of intent should outline the proposed terms, including the length of the lease, amount of rent, security deposit, and other pertinent details.
4. Wait for a responseThis part is the hardest for many of my clients because once the ball is out of our court, it can be hard to know when it will come back. If you seem too anxious, it will affect your ability to negotiate.
5. Examine and negotiateOnce you have received the response from the owner, you can either continue your negotiations or move on to another property. Please n...
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