Before you begin searching for the perfect for your small business, you will need to get educated about the commercial real estate leasing process. Being prepared should keep you from making hasty decisions and costly mistakes thatyou will probably regret in the future. Below are some insider suggestions to help make an informed decision when renting a commercial space your business

Start the process of hunting commercial space at least 6-12 months before your current lease expires or until your ideal move-in-date. Finding the correct space and negotiating the deal alonewill take 1-2 months depending upon the size area and current market conditions. In most cases the spaces you like will require some sort of improvements which the time required will depend on the scope of work.

completely examine your company’s current and future needs. Consult with the different department heads for input as well as some key employees.

Get familiar with allthe commercial real estate terms and definitions. Various landlords say and quote things differently. If you’re in doubt about what they mean don’t be afraid to ask them to provide more information.

If you’re not knowledgeable about the commercial property leasing process or the current market conditions then consider engaging the assistance of a tenant representative. Their services don’t cost you anything because landlords compensate all of the rental fees. The landlord agent will have an experienced listing agent helping them so it would be a great idea for you to have one also.

Personally tour all of the properties that meet your requirements so thatyou can make a brief list. Bear in mind that the designs can be reconfigured so don’t get stuck on that. Ask the landlord reps a great deal of questions about the ownership, property amenities, required lease term length, how much the landlord is willing to give in tenant improvement allowances, etc..

Don’t settle for the first commercial space you believe is acceptable for your requirements: continue looking until you have at least two to 3 alternative choices. These extra options will work to your benefit because you will know what to expect throughout the lease negotiations and you will gain more leverage with multiple landlords competing for your business. They also give you something to fall back to whether the discussions for your first choice go silent.

Send out proposals to your top three to five choices. These are not legally binding. You never need to take a landlord agent’s verbal word. Everything needs to be in writing.

To help you decide what property is most suitable for your company, prepare a spreadsheet to do an apples to apples comparison of each property. Some of the things you need to consider include the dimensions of this space, the inquiring foundation rental rates, the necessary lease duration, and the incremental expenses (taxes, insurance, maintenance, etc). It is also possible to take note about the advantages and disadvantages of each property. If you’re budget conscious then you can quickly narrow down the list by simply calculating the monthly base rents for each property then removing those that are way above your budget. The monthly base rent is calculated by multiplying the industrial space square feet by the asking base rate plus any operating expenditures then dividing by 12.

If some of the commercial spaces require changes then it’s important that you figure out what improvements you want on each and get construction bids. This way if the building owner is offering a construction allowance you will learn how much out of pocket you will need to pay above and beyond what the building owner is willing to give.

Carefully analyze and compare the terms of each proposal. Consider whether it is logical to go back to each landlord to negotiate additional concessions. Be certain you completely understand the total expenses you’re expected to cover. Don’t get emotionally attached to a specific property until the discussions are over. Emotional attachment might result in you signing a contract thatyour business can’t live up to.

After discussions are finalized and you’ve made your selection now it’s time to have the landlord provide you the first draft of this commercial rental contract.

Now it’s time to review the commercial rental contract. It would be advisable for you to hire an attorney to review the lease. If you have a tenant representative then they could review the lease with you also. Industrial lease language could be negotiated. If you don’t like certain lease items or would like to propose new language now is the time to do so.

Once the end of rental contract negotiations has finished the building owner will give you a copy of the lease to review.

There are several more things to consider when leasing commercial space however these suggestions will help get you going. If you’re a new company leasing commercial space for the first time or an current company who has only rented one or two spaces then consider getting help from a tenant agent. Their services do not cost you anything and you will save a great deal of time and money.