5 Steps of the Commercial Leasing Process

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Let’s face it, commercial leasing is probably not one of your favorite business tasks, but finding the best facility and terms for your company is important. Whether you want to expand your warehouse space, start manufacturing your own products or you just need room for a growing staff, you’ll probably have to deal with a commercial lease in your future.

Step 1: Find the Right Help

The first step is to find the right expert to help you out along the way. A good commercial real estate advisor will guide you, starting with the early decision-making process and evaluation of potential properties all the way through due diligence and lease signing. You’ll want to interview at least a few candidates and evaluate each based on an objective set of criteria rather than likability alone — choose carefully, and you’ll reap big dividends for years to come. The right broker will get to know you and your business needs thoroughly and will free you up to focus on your core business.

Step 2: Determine Exactly What You Need

Site selection isn’t as easy as it sounds, and you’ll want to involve key decision makers in your company as you consider these questions: How much space do I need? How much do I plan to grow my business realistically during the term of the lease? How will this new location affect key logistics considerations like shipping time and cost? Do I need a facility with a loading docks? What kind of technology does my business need to function optimally and can this facility handle that? These are important questions, and their answers should be documented with the help of your advisor.

Step 3: Find the Perfect Location

Commercial properties may be readily available in your market, but finding the right property for your business is can become a challenging task. Your advisor will have the connections and resources, including off market availabilities, comps, and proprietary intel to locate the property that fits your needs. Once you have several viable options, use your criteria in step 2 to narrow down the choices. Your broker can then set up tours of your top picks to narrow the list even further.

Step 4: Negotiate the Details

Commercial and industrial real estate leases cover a wide variety of requirements and responsibilities for both you and the property owner. And with so much information in documents that are often confusing, it really does make sense to get expert help to guide you through the process. It’s also essential to retain an experienced commercial real estate attorney to review the lease.

Step 5: Plan for Your Move

Once the ink is dry on your new lease, it’s time to nail down the details. Moving a large company takes planning, from any design changes needed in the facility to finding the right mover. Logistics is key to making this transition as smooth as possible.

When you find the perfect site your business can thrive. A professional broker can help you get there!