Criteria to Consider When Renting Commercial Space

Renting commercial space can mean stepping into a minefield of hidden costs and steep fees. The commercial real estate field is full of experts with deep experience. It is good for a newcomer to educate themselves on what to expect and CRE language. My first bit of advice is to start your search for your next space well before you need to move. The more time you have, the more leverage you’ll have during negotiations.

Photo by Andrea Piacquadio

But before we tackle your negotiating strategy for your next commercial space, let’s start with the basics.

  1. How much can you afford?
  2. Where do you need to be—near suppliers, customers, transportation hubs?
  3. How much square footage do you need?
  4. Which features do you require (private offices, open meeting spaces, a showroom, a warehouse with receiving dock)?
  5. And which ones do you want to make your business more efficient (on-site employee parking, an inexpensive power source)?

Use this list of criteria to shop for a commercial real estate broker, looking for one who focuses on tenant-side work and has an encyclopedic knowledge of your desired location. Don’t worry about the commission, which is paid by landlords on both sides of commercial leases.

Check out more tips in this Article by Joe Worth from Entrepreneur.com.

July 13, 2020

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