10 Things to Do Before Signing a Commercial Lease


Signing a commercial lease is a significant commitment that can impact the success of your business for years to come. Whether you’re opening your first location or expanding your operations, it’s crucial to approach this decision with careful consideration. Before you put pen to paper, here are ten essential steps to take:

1. Understand Your Business Needs

Before you start looking at properties, take the time to clearly define your business’s needs. Consider factors like the ideal location, square footage, layout, parking requirements, and accessibility. Knowing exactly what you need will help you narrow down your options and avoid wasting time on unsuitable properties.

2. Research the Market

Conduct thorough research on the local commercial real estate market. Understand the going rates for similar spaces in your desired area, and take note of any trends, such as rising demand or upcoming developments, that could affect future lease costs. This knowledge will give you leverage when negotiating lease terms.

3. Calculate Total Costs

The base rent is just one part of the total cost of leasing a commercial space. Be sure to account for additional expenses such as utilities, maintenance fees, property taxes, insurance, and common area maintenance (CAM) charges. Understanding the full financial commitment will help you budget accurately and avoid unexpected costs.

4. Evaluate the Lease Terms

Commercial leases can be complex, with various terms that could significantly impact your business. Pay close attention to the length of the lease, renewal options, rent escalation clauses, and any restrictions on the use of the space. If you’re unsure about any terms, consider consulting a real estate attorney to clarify.

5. Negotiate for Flexibility

Flexibility in your lease can be crucial, especially for growing businesses. Negotiate terms that allow for expansion, subleasing, or early termination in case your business needs change. Landlords may be willing to include these provisions if you demonstrate the long-term viability of your business.

6. Inspect the Property Thoroughly

Before signing a lease, conduct a thorough inspection of the property. Check for any structural issues, outdated systems, or necessary repairs. If you identify any problems, negotiate with the landlord to have them addressed before you move in, or seek a rent concession in exchange for taking on the repairs yourself.

7. Understand Zoning Laws and Regulations

Ensure that the property is zoned for your intended use and that there are no restrictions that could hinder your business operations. It’s also important to understand any local regulations, such as signage rules or environmental laws, that could affect your business.

8. Check the Landlord’s Reputation

The relationship you have with your landlord can greatly influence your experience in the space. Research the landlord’s reputation by speaking with current or former tenants and reading reviews. A landlord who is responsive and fair can make a big difference in how smoothly your business operates.

9. Plan for Growth

Consider your business’s future growth when selecting a space. Will the property accommodate an increase in staff, inventory, or customers? If not, make sure the lease provides options for expansion, such as the ability to lease adjacent space or move to a larger unit within the same property.

10. Review the Lease with a Professional

Before signing, have the lease reviewed by a commercial real estate attorney or a trusted advisor. They can help identify any potential issues, clarify complex terms, and ensure that the lease aligns with your business’s best interests. This final step can save you from costly mistakes and legal disputes down the road.


Taking the time to thoroughly evaluate your commercial lease before signing can protect your business and set you up for success. By following these ten steps, you’ll be better prepared to make informed decisions and secure a lease that supports your business goals.


Ready to Secure the Perfect Commercial Space?

Navigating the complexities of a commercial lease can be daunting, but you don’t have to do it alone. Whether you're a first-time lessee or looking to expand your business, I’m here to help you find the right space and negotiate terms that work in your favor.

If you have any questions or need expert guidance, don’t hesitate to reach out. Contact me at (925) 587-9934 or email me at monique.mitchell@expcommercial.com. Let’s work together to secure the ideal location for your business’s success!





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