5 Things To Consider When Renting a Commercial Space

Vacant Office Space In San Francisco Reaches All Time High — (Photo : (Photo by Justin Sullivan/Getty Images)) A pedestrian walks by a commercial property for lease on October 27, 2022 in San Francisco, California. According to a report by commercial real estate firm CBRE, the city of San Francisco has a record 27.1 million square feet of office space available as the city struggles to rebound from the Covid-19 pandemic. The US Census Bureau reports an estimated 35% of employees in San Francisco and San Jose continue to work from home.

Are you ready to grow your business and rent a new commercial space? The world of commercial real estate can be complicated and overwhelming, especially if your business is just starting out.

If you're having a hard time choosing a commercial space to rent, we've created a list of five things to consider to help you with your decision.

Your Business Needs

Before you decide on a commercial space to rent, spend some time sitting down and assessing what your business needs. Do you need more storage space for your products? Do you need a commercial space with room for a kitchen?

When looking for a commercial space, take into consideration the size, layout, location, and amenities that are essential for your business. Also, look for features unique to the property that are not mandatory but could benefit your business.

Your Budget

Another important factor to consider before renting a commercial space is your budget. You need to factor in other costs besides the rent, including utilities, maintenance, insurance, taxes, security, and renovations.

In addition, you should also consider the terms of a commercial lease. Typically, these run for a term of five, seven, or 10 years. However, some terms run longer.

Your Neighborhood

Before moving into a neighborhood, make sure you've done your research. The simplest way to get a feel of your neighborhood is to drive around and observe the demographics of your potential customer base, their prospected income levels, and whether they would benefit from the product or service you're selling.

Your Target Property

Once you've narrowed down your options, it's time to inspect each property in person. During the inspection, pay attention to the property's condition, functionality, accessibility, and visibility. You should also pay attention to the surrounding environment to see if there are any issues you need to resolve.

If you're meeting with the landlord, make sure to ask questions and request information about the property's history, occupancy, and regulations.

First Right of Refusal

If you're set on renting a property, make sure you and the landlord agree to give you "first right of refusal." This means they are required to come to you first to offer the chance to purchase the building or unit should they ever decide to put it up for sale.