Before you begin looking for a good warehouse space for rent for your startup company, you must to get informed about the commercial space leasing process. Being prepared should keep you from making hurried decisions and costly mistakes you will probably regret in the future. The following are some insider tips to help make an informed decision when renting a commercial property your business

Initiate the process of searching commercial space at least 6-12 months before your current lease expires or until your perfect move-in-date. Finding the correct space and negotiating the deal will take 1-2 months depending upon the size area and current market conditions. In most cases the spaces you like will need some type of improvements that the time required will depend on the scope of work.

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

Get familiar with the commercial real estate terms and meanings. Different landlords state and quote things otherwise. If you’re unsure about what they mean do not be afraid to ask them to get more info.

If you’re not familiar with the commercial real estate leasing process or the present market conditions then consider engaging the support of a tenant representative. Their services do not cost anything since building owners pay all of the leasing fees. The landlord rep will have an experienced listing agent representing them so it would be a good idea for you to have one too.

Physically see all of the spaces that meet your needs so you can make a brief list. Keep in mind that the layouts can be reconfigured so don’t get stuck on that. Ask the landlord representatives a great deal of questions about the ownership, property amenities, required lease duration, how much the landlord is willing to give in tenant improvement allowances, etc..

Do not settle for the first commercial space you think is suitable for your needs: continue looking until you have at least 2 to three alternative options. These extra options will work to your advantage because you will know what to expect during the lease negotiations and you will gain more leverage with numerous building owners competing for your business. They also give you something to fall back to whether the negotiations for your first choice fall through.

Send out proposals to your top three to five options. These are not legally binding. You never want to take a landlord representative’s verbal note. Everything should be in writing.

To help you decide what property is best suited for your business, prepare a spreadsheet to do an apples to apples comparison of each property. Some of the things you need to put into consideration include the dimensions of this distance, the inquiring foundation rental rates, the required lease duration, and the incremental costs (taxes, insurance, maintenance, etc). You can also take note about the pros and cons of each property. If you’re 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 over your budget. The monthly base rent is calculated by multiplying the commercial space square feet by the asking base rate plus any operating expenditures then dividing by 12.

If some of the commercial spaces need changes then it is important that you determine what changes you want on each and get preliminary bids. That way if the building owner is offering a construction allowance you will learn how much out of pocket you will need to pay over and beyond what the building owner is willing to give.

Carefully analyze and compare the terms of each proposal. Consider whether it makes sense to go back to each landlord to negotiate extra concessions. Make certain you completely understand the total expenses you’re expected to cover. Do not get emotionally attached to a certain property until the negotiations are over. Emotional attachment might lead to you signing a contract your business can’t live up to.

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

Now it is time to review the commercial lease contract. It would be wise for you to hire an attorney to review the lease. If you have a tenant agent then they could review the lease with you also. Industrial lease language could be negotiated. If you do not like particular lease items or would like to propose new language today is the time to do so.

Once the end of lease contract negotiations has finished the building owner will provide you a copy of the lease to review.

There are many more things to consider when renting commercial space however these suggestions will help get you going. If you’re a new business renting space for the first time or an current business who has only leased 1 or 2 spaces then consider getting help from a tenant rep. Their services do not cost you anything and you will save a great deal of money and time.