Leasing space for a business can be a complicated process. There are several variables to consider including location and cost. Here are general guidelines for how the leasing process works and what you should expect as a business owner. However, keep in mind that the leasing process is often unique for every situation. These steps may vary depending on a variety of factors. The Steps 1.DETERMINE YOUR NEEDS First, it's important to get very specific in your needs and wants. This will help you narrow your search to just spaces that will work for your business. There are three major components to decide upon: location, rent budget, and type of space. LOCATION Location affects your visibility as well as the quality and value of your space. Ask the simple questions - Where are our customers? Our market region? Our employees? What other businesses offer a synergistic relationship? Where is the competition located? COST Your monthly rent will be determined by many variables: lease rate per square foot, free rent, utilities, additional tenant improvements that are amortized into the rent, and annual rental increases as provided for in your lease. See the sections on Lease Types and Calculating Rent to learn more. TYPE OF SPACE The type of space you need is going to be determined by the type of product or service you provide. There are several different types of commercial properties that fall under the umbrellas of industrial, retail, and office spaces. Getting to know the various types before you begin your search can be helpful.