How to Lease Commercial Properties

Leasing a commercial property is one way to give your business permanence and stability. But a commercial lease places most of the financial responsibility for leasehold improvements on the renter, rather than the landlord. It's important to thoroughly research a commercial property before you sign a lease, to determine whether you have a reasonable chance of paying back the cost of leasehold improvements over the course of the lease term.

Instructions
Research whether the commercial space you're considering is zoned for your specific type of business activity. In most municipalities, commercial property must be zoned for general commercial use, but specific types of commercial activity such as restaurants, bars and manufacturing have special zoning requirements as well. You can find zoning maps online through your town or city's website, or you can visit your municipal zoning office to obtain the information you need. Some municipalities allow you to apply for a change of use if the property isn't already appropriately zoned. Make sure that this is possible, before you commit to a commercial lease.
Work with contractors to develop a realistic estimate of the cost of improvements you'll need to prepare the commercial space for the type of use it will receive. Include the cost of plumbing, electrical work, ventilation, and any changes to the layout, such as adding or removing walls. Also calculate the cost of signs, paint, flooring or rugs, and licenses or permits. Add the amount that you'll pay in rent while completing your leasehold improvements.

Calculate the volume of business you'll need to transact to cover the cost of the leasehold improvements. Negotiate with the landlord, to determine if he's willing to extend a lease with a long enough term for you to make back the money you'll need to invest. Also, check with your prospective landlord to see if he's open to you using the space for the purpose you intend, and if he'd be willing to offer you a rent reduction while you complete your improvements.

Review the commercial lease your landlord offers you. Most commercial leases are fairly standard, but it's still important to understand the terms. Ask to include provisions for special circumstances you might encounter -- for example, you might not use your commercial space full time, and might ask to sublet it to another business during off hours.