Leasing commercial space can feel complex and time-consuming, especially for business owners expanding or relocating. Understanding the stages involved helps you navigate the process, manage expectations, and secure a space that fits your business needs. In this blog, we’ll explore the key steps in leasing from a tenant’s perspective and how long each stage typically takes.
Touring and Identifying Potential Spaces
The first step in leasing a new space is identifying properties that suit your business needs. Even if you prefer a particular space, touring at least 4-5 other properties is essential. Why? Comparing spaces gives you insight into the market, pricing, concessions, and available amenities.
Touring multiple spaces strengthens your negotiation position. If you find a better deal elsewhere, you’re more equipped to negotiate favorable terms. This stage typically takes 1-2 weeks, depending on space availability and your schedule. Use this time to explore and make an informed decision.
Preparing Your Application, Financials, and Letter of Intent (LOI)
Once you’ve chosen a space, prepare and submit your application, financial documents, and a Letter of Intent (LOI). The LOI outlines lease terms and sets the stage for negotiations. A thorough, professional package expedites the process and shows landlords you’re a serious tenant.
Typically, gathering these documents takes 1-3 days, depending on how quickly you compile the necessary information.
Negotiating the Letter of Intent (LOI)
Negotiating the LOI is a critical stage. The LOI covers rent, lease duration, and any concessions. Multiple revisions may occur before both parties agree. Be clear about your needs and responsive to counteroffers.
Open communication speeds up the process, which generally takes 1-5 days based on the complexity of terms and responsiveness.
Awaiting the Landlord’s Response and Lease Drafting
After agreeing on LOI terms, the landlord reviews it, makes revisions if needed, and drafts the lease. This step can vary depending on the landlord’s legal team and priorities.
Drafting the lease usually takes 2-4 days. Though this stage is outside your control, proactive follow-ups help keep things moving.
Finalizing the Lease Agreement
With the lease draft in hand, conduct a final review to confirm all agreed terms are accurate. Consult a legal professional to identify any hidden clauses or unfavorable terms.
Once satisfied, sign the lease and provide any required documentation, such as the security deposit, first month’s rent, and proof of insurance. This step typically takes 1-3 days.
Leasing a commercial space involves several stages with varying timelines. From touring spaces and preparing applications to negotiating terms and finalizing the lease, every step requires attention to detail. Being prepared and proactive can make the process smoother and more efficient.
Need help leasing your next commercial space? Contact us today for personalized advice and support!
Leasing a commercial space is like navigating a maze with no clear map—every turn reveals new challenges, and the timeline? It’s anyone’s guess. From scoping out potential spaces and prepping your application to hammering out the details and sealing the deal, each stage demands your full attention and a knack for strategy. It’s a process that can throw curveballs, but with the right mindset and a proactive approach, you can cut through the noise and get where you need to be.
If you’re in the thick of leasing a commercial space and could use some seasoned guidance, don’t hesitate to reach out. With the right support, you can lock down a space that not only fits your business but also sets the stage for your next big move.
