That’s it. It’s time to get a real business space. Working from home or on the street is not enough. This is the thing though. When renting a commercial space for your growing business, especially if you’re transitioning from a home office, you will need to have a clear strategy. Don’t worry..here are five tips to help you make an informed decision:

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1. Understand Your Space and Budget Requirements

Before starting your search, clearly define what your business needs in terms of space. Consider how many employees you have, the nature of your operations, and your growth projections over the next few years. Calculate the necessary square footage, keeping in mind that commercial leases are often priced per square foot per year. For example, a lease might be quoted as $25 per square foot annually. If you’re considering a 2,000-square-foot space, your annual rent would be $50,000, or about $4,167 per month​.

Mistake to Avoid: Underestimating Future Growth Needs.  Over 40% of small businesses end up relocating within the first two years because they underestimated their space needs, leading to disruptions and additional expenses

2. Location Matters

The location of your commercial space can significantly impact your business’s success. Look for a space that is accessible to both your customers and employees, with considerations for nearby amenities like public transportation, parking, and the surrounding business environment. High foot traffic areas might come with higher rents but can drive more customers to your business. On the other hand, a quieter location might be more affordable but could require additional marketing efforts​.

Mistake to Avoid: Ignoring Location Considerations. Businesses that choose the wrong location experience a 60% higher rate of employee turnover due to accessibility and satisfaction issues​

3. Lease Types: NNN vs. Gross Leases

Understanding the different types of leases is crucial in making the right decision. Two common types are the Triple Net (NNN) Lease and the Gross Lease.

• NNN Lease: In a Triple Net Lease, the tenant is responsible for not only the base rent but also the property’s operating expenses, including property taxes, insurance, and maintenance. While the base rent might be lower, these additional costs can add up, so it’s important to calculate your total expected monthly expense.
• Gross Lease: In contrast, a Gross Lease typically includes all expenses within the rent, making budgeting easier. However, the base rent is usually higher compared to an NNN lease. Depending on your business model and cash flow, one type may be more suitable than the other​.

Mistake to Avoid: Failing to Understand Lease Terms. Approximately 50% of small business owners report unexpected costs arising from lease agreements they didn’t fully understand, particularly related to maintenance and rent escalation clauses.

4. Negotiate Based on Property Type, Traffic, and Condition

When negotiating your lease, consider the type of property and its condition, as well as the traffic it attracts. For instance, a retail space in a high-traffic area might justify a higher rent, but if the property is older or needs significant repairs, you should negotiate for lower rent or request that the landlord handle the improvements. Additionally, exclusivity clauses can be critical; they prevent the landlord from renting nearby spaces to your competitors, which can be a significant advantage, particularly in retail settings​.

Mistake to Avoid: Overlooking the True Cost of Renovations: Nearly 30% of small businesses exceed their initial budget by at least 20% due to unanticipated renovation costs after signing the lease.​

5. Leverage a Commercial Real Estate Broker

Navigating the complexities of commercial leasing can be daunting, especially for newer businesses. Engaging a commercial real estate broker can provide you with expert guidance. Brokers have in-depth knowledge of the local market, can help identify spaces that meet your criteria, and assist in negotiating favorable lease terms. At eXp Realty, we specialize in helping growing businesses find the perfect space. Our experience and connections can save you time and money while ensuring you secure a space that aligns with your business goals​(

Mistake to Avoid: Tenants represented by a commercial broker save an average of 15-20% on lease costs compared to those negotiating alone, thanks to expert negotiation and market knowledge

By following these tips and working with a professional, you can secure a commercial space that not only fits your budget but also supports your business’s growth and long-term success.

Curious about selling or buying your commercial space? Call me at 720-724-8187 or book an appointment online.

I’m here to help you every step of the way!