Leasing commercial space is one of the most important decisions a business owner can make. The right space can position you for growth, while the wrong decision can cost you valuable time and money. To help you navigate the process, here are the top do’s and don’ts every tenant should know when leasing commercial real estate.
✅ Do’s for Tenants
1. Do Define Your Business Needs First
Before touring spaces, outline what your business truly requires: square footage, layout, location, parking, and budget. Clarity upfront makes it easier to narrow down the right properties.
👉 Learn more about space planning from NAIOP
2. Do Start Early
Finding the right commercial space can take 6–12 months. Beginning your search early provides more options and strengthens your negotiating power.
👉 Investopedia explains why timing is crucial in CRE
3. Do Review Lease Terms Thoroughly
Every clause matters—from rent escalation to maintenance fees and renewal options. Always have an attorney or experienced broker review the lease to protect your interests.
4. Do Consider Future Growth
Think long-term. Will the space accommodate your business in three to five years? Flexibility options such as subleasing or expansion clauses can prevent costly moves.
5. Do Work With a Qualified Broker
A broker who specializes in tenant representation can guide you through the process, help identify opportunities, and negotiate favorable terms. This expertise can save you from costly mistakes.
👉 CCIM Institute on the value of tenant representation
❌ Don’ts for Tenants
1. Don’t Focus Only on Rent
Low rent can be tempting, but hidden costs—like CAM fees, taxes, insurance, or maintenance—can add up quickly. Always evaluate the total occupancy cost, not just the base rent.
2. Don’t Skip Due Diligence
Never assume the landlord’s word is final. Investigate zoning laws, building compliance, and neighborhood trends before committing to a lease.
3. Don’t Overcommit on Lease Length
Long leases can lock you into a space that may not serve your business long-term. Balance the security of a lease with the flexibility you may need as your business evolves.
4. Don’t Ignore Location Factors
A cheap space in the wrong location can cost more in lost customers, employee turnover, or logistics headaches. Always consider accessibility, visibility, and proximity to your market.
5. Don’t Go It Alone
Leasing a commercial property is complex. Skipping professional guidance can lead to costly oversights. Brokers, attorneys, and accountants are valuable allies in the process.
Final Thoughts
For tenants, commercial leasing is more than signing a contract—it’s securing a foundation for your business’s future. By following these do’s and don’ts, you’ll protect your investment, avoid costly mistakes, and position your company for long-term success.
At The Bill Gladstone Group, we’ve guided countless tenants through the leasing process in Central Pennsylvania. Whether you’re opening your first location or expanding your business footprint, our team is here to help you make the right move.