Before you start looking for a good warehouse space for rent for your company, you should to get informed about the commercial real estate leasing procedure. Being prepared will prevent you from making rash decisions and costly mistakes thatyou will regret in the future. Below are some insider tips to help make an informed decision when leasing a commercial space your company

Initiate the process of finding commercial space at least 6-12 months before your current lease terminates or until your perfect move-in-date. Locating the right space and negotiating the deal alonewill take 1-2 months depending on the size space and current market conditions. Typically the spaces you like will require some type of improvements which the time needed will depend on the scope of work.

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

Get acquainted with allthe commercial real estate terms and definitions. Different landlords state and quote things differently. If you are in doubt about what they mean do not be afraid to ask them to provide more information.

If you are not familiar with the commercial rental process or the present market conditions then consider engaging the support of a tenant rep. Their services do not cost you anything since landlords compensate all of the rental commissions. The landlord representative will have an knowledgable listing agent representing them so it would be a great idea for you to have one as well.

Personally tour all of the spaces that meet your needs so thatyou can make a short list. Keep in mind that the designs can be reconfigured so don’t get stuck on that. Ask the landlord agents a lot of questions regarding who owns the property, property amenities, required lease duration, how much the landlord is willing to give in tenant construction allowances, etc..

Do not settle for the first commercial properties you think is suitable for your needs: continue looking until you have at least two to 3 other options. These extra options will work to your benefit because you will know what to expect throughout the lease negotiations and you’ll gain more leverage with multiple landlords competing for your company. They also give you something to fall back to if the discussions for your first choice go silent.

Send out proposals to your top three to five options. These aren’t legally binding. You don’t ever need to have a landlord agent’s verbal word. Everything needs to 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 consider include the size of this distance, the asking base rental rates, the required lease duration, and the incremental costs (taxes, insurance, maintenance, etc). It is also possible to take note about the pros and cons 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 eliminating those that are way above your budget. The monthly base rent is calculated by multiplying the industrial space square feet from the asking base rate plus any operating expenditures then dividing by 12.

If some of the commercial spaces require tenant finish-outs then it is critical that you figure out what improvements you want on each and get construction bids. This way if the landlord is offering a tenant improvement allowance you will learn how much out of pocket you’ll have to pay above and beyond what the landlord is willing to give.

Carefully analyze and compare the terms of each proposal. Consider whether it makes sense to go back to every landlord to negotiate additional concessions. Make sure 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 lead to you signing a contract thatyour business can’t live up to.

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

Now it’s time to review the commercial lease contract. It would be advisable for you to hire an attorney to review the lease. For those who have a tenant representative then they could review the lease with you as well. Industrial lease language could be negotiated. If you do not like particular lease items or want to propose new language today is the time to do so.

Once the end of lease contract negotiations has finished the building owner will supply you a draft of the lease to review and sign.

There are several more things to consider when renting commercial real estate however these suggestions will help get you started. If you are a new business renting space for the first time or an current business who has only rented one or two spaces then consider getting help from a tenant representative. Their services do not cost you anything and you’ll save a great deal of money and time.