Before you begin searching for the perfect warehouse space for rent for your small business, you need to get educated about the commercial property leasing process. Being ready will prevent you from making rash decisions and costly mistakes you will end up regretting later on. The following are some insider tips to help make an informed choice when letting a commercial real estate your business

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

completely analyze your business’s present and future needs. Consult with the different department heads for input in addition to some key employees.

Get acquainted with allthe commercial real estate terms and definitions. Various landlords state and quote things differently. If you are unsure about what they mean don’t be afraid to ask them to provide more information.

If you are not familiar with the commercial property leasing process or the present market conditions then consider engaging the assistance of a tenant rep. Their services don’t cost anything because landlords compensate all of the leasing commissions. The landlord agent will have an expert listing agent representing them so it would be a great idea for you to have one as well.

Physically see all of the spaces that meet your needs so you can make a brief list. Bear in mind that the layouts can be reconfigured so don’t get stuck on that. Ask the landlord agents a great deal of questions about who owns the property, property amenities, required lease duration, how much the landlord is willing to give in tenant improvement allowances, etc..

Do not settle for the first commercial properties you think is suitable for your needs: continue searching until you have at least 2 to three other options. These additional options will work to your advantage since you will know what to expect during the lease negotiations and you’ll gain more leverage with numerous landlords competing for your tenancy. They also give you something to fall back to if the discussions for your first choice go sideways.

Send out proposals to your top three to five options. These are not legally binding. You never want to have a landlord representative’s verbal note. Everything should be in writing.

To help you decide what property is most suitable for your business, prepare a spreadsheet to do an apples to apples comparison of every property. A few of the things you should put into consideration include the dimensions of the distance, the asking base rental rates, the required lease term, 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 are budget conscious then you can quickly narrow down the list by 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 any of the commercial spaces need tenant improvements then it’s important that you figure out what improvements you want on each and get preliminary bids. This way if the landlord is offering a tenant improvement allowance you will know how much out of pocket you’ll need to pay above and beyond what the landlord is willing to give.

Carefully examine and compare the terms of each proposal. Consider whether it is logical to return to every landlord to negotiate extra concessions. Make certain you fully understand the total expenses you are expected to cover. Do not get emotionally attached to a certain property until the discussions are over. Emotional attachment might result in you signing a contract your business can’t live up to.

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

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

When the end of lease contract negotiations has ended the building owner will provide you a copy of the lease to review.

There are several more things to consider when renting commercial space however these tips will help get you going. If you are a new business renting commercial space for the first time or an existing business who has only rented one or 2 spaces then consider getting help from a tenant agent. Their services do not cost you anything and you’ll save a lot of time and money.