Leasing your first commercial space is a huge milestone. This guide visualizes the key concepts you need to master.
We'll break down the financial terms, lease types, and responsibilities to ensure you're prepared for every step of the journey.
The Financial Foundation
Tenant Improvement (TI) Allowance
This is the money a landlord gives you to build out your space. It's a critical part of your negotiation to reduce upfront costs.
For a 2,000 SF Space...
...with a $25/SF TI Allowance...
You Get
$50,000
for Renovations
Typical Upfront Costs
Be prepared for initial cash expenses. This chart shows a typical breakdown, not including build-out costs.
Decoding Your Lease
Comparing Lease Types
The type of lease dramatically affects your monthly costs. A Triple Net (NNN) lease has a lower base rent, but you pay for variable operating expenses. A Full-Service Gross (FSG) lease bundles everything into one higher, fixed payment.
Annual Rent Increases
Most multi-year leases include "rent escalations." This chart shows how a 3% annual increase affects your rent over a 5-year term.
Division of Duties
Knowing who is responsible for what is key. Here's a general breakdown of tenant vs. landlord responsibilities.
✅ Tenant's Role
- Paying Rent
- Interior Maintenance
- HVAC Servicing
- Utilities & Insurance
🏢 Landlord's Role
- Building Structure (Roof)
- Common Area Safety
- Major System Replacements
- Property Taxes/Insurance
The Tenant Rep Advantage
Navigating this process alone is risky. A tenant representative works exclusively for you to level the playing field. My commission is paid by the landlord, so my service comes at no cost to you.
1
Needs Analysis
2
Site Selection
3
Offer Strategy
4
Aggressive Negotiation
5
Lease Closing
