Commercial Real Estate Leasing Process
Nothing can add more power to your life than concentrating all your energies on a limited set of targets.”
-Nido Qubein
Once you have a fairly good idea of your budget, the size of the space you need and building requirements, and the general geographic location, it's time to look at the market and see what you can Lease for that budget and
where it may be located. Enough calculations.
Now the game is afoot!
The leasing process consists of the following steps and any competent commercial real estate broker can take you through all the steps up to the Proposal Step. This is when an experienced Tenant broker will show you why you hired him or her.
Once you have defined your needs and outlined a geographic area a Tenant broker will find the spaces, plan and conduct the tour(s). A good Tenant broker will advise you about the track record of a Landlord, point out what’s right and what’s wrong with a building, and generally steer you through the process. It’s not rocket science to find a building but sometimes it can be difficult to find the right one.
Most Tenants know what buildings meet their locational and aesthetic requirements once they see it. Then the fun starts. The building that you may have fallen in love with may not be the one for you after all. That’s why you have already hired the professionals you need to tell if it’s the one or if it isn’t. And that’s where things can get a little hairy. If they aren’t a little hairy, things probably haven’t been done right.
The Process is as follows:
Researching an Office Location
- Analyze market conditions and find available properties
- Your tenant rep will provide you with a list of available spaces
- And schedule a property tour
Property Tour
In my opinion, it's not a good idea to rule out properties. Tenants tend to miss good opportunities when they do this. It takes time to get a good deal that will then pay off for many years. Take the time!
Request Landlord Proposals RFP
Once you get these back you can compare the buildings on many levels not only on rental cost if this is done correctly. Often your tenant rep will get these on an informal basis from the landlord or his agent. Whatever happens you now have a list of alternatives from which to choose.
Planning, Permits and Construction
Clauses can be inserted into the offer to lease to protect you from paying rent on a space but not being able to occupy it because it's not ready for a number of reasons.