How to Lease Commercial Real Estate:
So you’ve found the perfect space for your clothing boutique – the store frontage is great, the neighbor tenants are excellent, the property is in gorgeous shape and the rental rate – well actually you’re not sure yet. Or how to rent the space. Or who you contact. Actually besides the space being perfect you aren’t quite sure what to do next – keep reading to see the process of leasing Commercial Real Estate!
Contact the leasing agent for the property!
Likely the number posted in front of the space is the listing agent but if not … (pro tip) search the address of the space! You’re likely to find a loopnet listing, craigslist or even the company’s website advertising the property! If after all these avenues you’re unable to figure out who to contact – ask a tenant! Likely the property manager of the space is also the listing agent – and if not… The property manager will be able to get you in contact with the listing agent!
You’ll fill out a tenant application –
Once you’ve spoken to the agent they’re going to want a little insight on who you are as a tenant and what you’re planning on using the space for. You’ll be asked to fill out a tenant application – this will include information like your current assets, any previous business ventures (failed or successful) and you’ll likely have a background check conducted! This might seem like a lot of extra information to lease a space but keep in mind that all other tenants have gone through the same process – this helps protect YOU as a tenant and the agent/landlord!
Time to negotiate the lease –
Once the listing agent and landlord have discussed your tenant application and the space use you’re desiring it’s time to figure out your lease term and the rate at which you’ll rent! Keep in mind that each and every owner has preferences for how long they’ll lease the space and what kind of deal they’ll cut you! Generally the longer you sign a lease the better deal you get. For example; a two year lease might get you a month or two of free rent & other perks along the way! Talk to the listing agent about the best deal for you & your space!
Common question: What is CAM?
– CAM stands for “Common Area Maintenance.” CAM fee’s pay for the shared space that you and all other tenants use. This commonly includes things like roof maintenance, parking lot maintenance, landscaping, water for the landscaping, and other general space uses. Talk to the property manager to see what is your responsibility versus what CAM covers.
Final Steps –
You’ve signed your lease and the deal is successful! It’s time to move in your space and get your business going – CONGRATS! Owning and running a business is a huge venture and a big responsibility but we know you can do it!