Finding and leasing the right commercial space is one of those decisions that looks straightforward from the outside but reveals its complexity the moment you start the process. I’ve guided hundreds of businesses through commercial space searches — from first-time tenants who’ve never signed a commercial lease to experienced operators expanding into new markets — and the pattern I see most often is the same: businesses that approach the process without a clear framework end up in spaces that cost too much, fit too poorly, or lock them into terms that don’t serve their growth.
Here’s the framework that works.
Start With a Space Brief Before You Search
The single most important thing you can do before you look at a single listing is define exactly what you need. This sounds obvious, but most tenants skip it. A clear space brief includes:
- Property type: Office, retail, industrial, medical, flex, or mixed-use
- Square footage: Current needs and a realistic growth projection for the lease term
- Location parameters: Specific neighborhoods, proximity to customers or employees, transit access
- Budget: Maximum total occupancy cost — base rent plus all additional charges
- Operational requirements: Parking, loading, ceiling height, power capacity, HVAC, signage
- Lease term preference: How long you want to commit and what exit flexibility you need
With a precise brief, your search becomes targeted and efficient. Without it, you’ll waste weeks touring spaces that were never right for your business.
Engage a Tenant Representative — Before You Contact Anyone Else
I cannot overstate how important this step is. A tenant representative is a commercial real estate advisor who works exclusively on your behalf as a tenant — helping you identify spaces, evaluate options, and negotiate lease terms. And here’s the part most business owners don’t know: the tenant rep’s commission is paid by the landlord, not by you. Professional representation at zero direct cost.
What a strong tenant rep brings:
- Access to listed and unlisted space availability through broker networks and CoStar
- Market data on current rents, vacancy rates, and concession levels
- Experience negotiating with landlords and identifying favorable lease structures
- Knowledge of which landlords are reliable operators and which ones create problems for tenants
- Ability to run a competitive process across multiple landlords simultaneously
Conduct a Structured Market Search
Once your requirements are defined and your tenant rep is engaged, the search begins. Your advisor will pull available inventory from CoStar, LoopNet, CREXi, and broker networks — including spaces that haven’t been publicly listed yet. From the full universe of available options, you’ll filter down to a shortlist of five to eight properties that genuinely fit your criteria.
Resist the temptation to tour everything. A focused shortlist forces better decisions and signals to landlords that you’re a serious, qualified tenant.
Tour Spaces With Purpose
When you tour commercial spaces, go beyond aesthetics. Evaluate each property for:
- Functional layout: Does the space configuration work for your operations without excessive build-out?
- Physical condition: What is the state of mechanical systems, finishes, and infrastructure?
- Building performance: What are utility costs, and how does the building’s envelope affect them?
- Landlord quality: What is the ownership group’s reputation for responsiveness and maintenance?
- Location dynamics: What’s happening in the surrounding submarket — is it improving or declining?
Take notes and photographs at every tour. Your memories of different spaces will blur quickly as the search progresses.
Run a Competitive RFP Process
For your top two or three spaces, issue formal Requests for Proposals through your tenant rep. The RFP asks each landlord to submit their best proposed terms across key business points:
- Base rent and annual escalation schedule
- Tenant improvement allowance
- Free rent period
- Lease term and renewal option structure
- Operating expense structure and annual caps
- Parking terms and cost
- Any landlord work commitments
The RFP process creates genuine competition and gives you comparable term sheets to negotiate against. Never enter a lease negotiation having only talked to one landlord.
Negotiate With Discipline
With competing proposals in hand, negotiate strategically. The key negotiating levers in any commercial space lease include:
- Rent reduction: Asking rates are starting points, not final prices
- Increased TI allowance: Push for a landlord contribution that covers meaningful build-out costs
- Free rent: Three to six months of free occupancy at lease commencement is common in many markets
- Operating expense caps: Limit your exposure to escalating building costs
- Renewal options at defined rates: Lock in your right to stay before the landlord knows how committed you are
- Termination rights: Early termination options for defined circumstances provide valuable flexibility
Review the Lease Document With Legal Counsel
When the business terms are agreed, a formal lease document is prepared — typically the landlord’s standard form, which is written to protect the landlord. Have a qualified commercial real estate attorney review the full document before you sign. Lease language governing default remedies, assignment restrictions, and operating expense definitions can have significant financial consequences that aren’t visible from the business term summary.
Execute and Plan Your Move-In
After signing, coordinate build-out, permitting, utility setup, and occupancy timing carefully. Maintain clear communication with your landlord throughout the build-out process and document any commitments regarding landlord work, delivery condition, and occupancy date.
If you want expert guidance through every step of leasing commercial space — from defining your brief to executing your lease — I’m Matt Bingaman. Contact me today and let’s find the right space for your business on terms that work.