8 steps to the leasing process...Ready? Let's get started!

It is so important to understand the stumbling blocks that could crush your chances of success when it comes to the leasing process and in order to do that, we need to have a clear picture of the leasing process itself. Now here is where I strongly encourage you to enlist the help of an experienced commercial real estate professional to help you! Why? Several reasons but to put it into practical terms, Google is a great resource for remedies for the common cold but when you have pneumonia, it is necessary to seek the help of a medical professional to make sure you heal thoroughly and to protect against it getting worse.

For the last 4+ years I have taught a seminar called Demystifying the Commercial Leasing Process. What used to surprise me was how many people showed up each time I would teach it-anywhere from 25 to 60 people came wanted to have the mystery removed for them. The attendees included property owners wanting to understand better how to lease their buildings, small business owners looking to make a move or new business owners starting the process for the very first time. Regardless, they were all wanting to be educated and over the course of a 3 hour seminar I hoped I gave them some knowledge.

Timing the transaction is everything if you are the tenant or the landlord. Both need to begin the process early. If you are a tenant, 4-8 months before your move date is ideal and that same timing applies to the Landlord to list a space that is coming available. By planning well in advance, time will be your ally and not your enemy.I realize this seems extensive but you NEVER want to feel under the gun while you are looking and negotiating.

Step 1- Define Your Requirements

Simply you need to define your requirements in advance. By doing this you will save time and avoid starting in the wrong direction. The most effective way of doing this is by committing the requirements to paper so that nothing is overlooked. 

•What geographic area(s) is important to you?

•What particular buildings interest you?

•Does your type of business have specific space configuration needs?

•How many square feet will be leased?

•How many people will be employed at this location?

•What is your annual budget?

•What length of lease is preferable?

•Is future expansion important?

•When does your company intend to move?

•When does your existing lease expire?

•What are your parking and transportation needs?

•Do your clients visit often?

•What kind of image would you like to establish?

Once we have a clear idea of what we are looking for you we can move on to Step 2...Locate Suitable Properties. But you will need to wait until the next blog entry to see what that looks like.