Renting commercial real estate is a major milestone for any business—but it also requires careful planning and strategic decision-making. From finding the right location to negotiating favorable lease terms, every step impacts your company’s long-term success.
At BorrowBe, we help businesses navigate the complexities of commercial rentals with ease. Use this complete checklist to ensure you're making the smartest move for your business.
Key Considerations When Renting Commercial Property
1. Budget for All Costs (Expected and Unexpected)
Your budget must include:
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Fixed costs: Monthly rent, utilities, insurance, and taxes
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Upfront expenses: Security deposit, renovation/build-out fees
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Unexpected costs: Repairs, maintenance, legal or zoning fees
Tip from BorrowBe: Always set aside a buffer for unplanned expenses to avoid cash flow issues down the road.
2. Evaluate Multiple Locations
When choosing a site:
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Visit at different times of day to assess traffic, parking, and noise
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Review zoning laws and business compatibility
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Ensure visibility and accessibility for both customers and staff
3. Choose the Right Lease Term
Weigh the pros and cons:
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Short-term leases: Higher flexibility, often at a premium
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Long-term leases: Lower rates, but less freedom to pivot
Align your lease term with your business forecast and growth trajectory.
4. Calculate Required Square Footage
Space should accommodate:
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Staff workstations
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Customer areas
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Inventory and equipment
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Expansion potential
Overestimating space wastes money, while underestimating stifles growth.
5. Study Neighboring Businesses
Proximity to other businesses can impact your foot traffic:
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Complementary neighbors (e.g., a coffee shop near a bookstore) can boost visibility
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Competitors nearby may reduce market share
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Parking availability is a critical factor
6. Plan for Future Growth
Avoid outgrowing your space too quickly by:
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Choosing modular layouts
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Negotiating first right of refusal for nearby units
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Considering expandable design features
Detailed Lease Evaluation Checklist
Here’s a comprehensive table to compare and analyze lease components:
| Lease Element | What to Check |
|---|---|
| Lease Duration | Standard is 3–5 years. Look for renewal options aligned with business growth. |
| Base Rent | Monthly or annual rate; check if it's fixed or percentage-based. |
| Incentives | Free rent period, renovation allowance, relocation assistance. |
| Extra Fees | Security deposit, signage, parking fees, early termination penalties. |
| Operating Expenses | Who pays utilities, maintenance, waste disposal, snow removal? |
| Rent Increases | Understand escalation clauses and annual adjustment limits. |
| Insurance & Liability | Know your required coverage and landlord obligations. |
| Expansion Flexibility | Clause to add square footage or relocate within the property. |
| Due Diligence | Legal review, zoning check, crime rates, permits, and safety compliance. |
Before signing:
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Read every clause carefully—especially those related to renewal, penalties, and responsibilities
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Hire a commercial real estate attorney to review terms
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Negotiate for:
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Exclusive use rights
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Clear signage permissions
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Defined repair and maintenance duties
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Personal guarantee protections
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Must-Have Lease Clauses
Every professional lease should include:
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Parties involved and contact info
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Exact property description
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Permitted business use
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Lease duration and renewal options
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Rent terms and escalation clauses
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Deposit and payment structure
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Maintenance responsibilities
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Insurance requirements
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Termination and default provisions
FAQs: Renting Commercial Property with BorrowBe
What should I ask before renting commercial space?
Ask about:
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Lease type (gross, net, percentage)
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Minimum lease term
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Included utilities/amenities
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Required insurance
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Parking allocation
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Expansion possibilities
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Permission for interior modifications
Who makes the best commercial tenants?
Businesses with consistent revenue and long-term potential are ideal. These include:
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Medical offices and clinics
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Pharmacies and urgent care centers
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Convenience stores and auto part retailers
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Dental practices
These tenants offer landlords stability and fewer vacancies.
What qualifies as commercial property?
Commercial properties include:
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Retail spaces and offices
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Warehouses and industrial units
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Multi-unit apartment buildings
While residential and commercial can overlap (like mixed-use buildings), commercial leases are designed strictly for business operations.
Conclusion: Plan Wisely, Rent Smart
Renting commercial real estate is a big step—one that requires thorough planning, budgeting, and negotiation. With this comprehensive checklist, you’ll be equipped to choose a location that fuels your business success.
At BorrowBe, we’re here to help you secure the right space on the right terms. From site scouting to lease negotiation, our team supports every phase of your commercial rental journey.
Ready to find the perfect property for your business?
Contact BorrowBe today and let’s make your next move a smart one.
