How to Fill out a Commercial Lease

Step-by-Step Guide

1. 1

   Step 1: Identify the property you want to lease.

   You will need to know the location and the square footage of the areas you are offering for lease.
   
   For example, are you leasing the entire building or only part of one? Does the tenant get to use the basement or outbuildings? Be very specific about what you are offering to avoid conflict with your tenants.
2. 2

   Step 2: Identify the common areas of the property.

   Common areas are the spaces that all of your tenants share and may include bathrooms, kitchens, meeting rooms, lobbies, storage, and parking.
   
   Decide if you will apportion the cost of the common area maintenance on a square footage basis (tenants with bigger spaces pay more,) or divide it equally among tenants. , Before you talk to the prospective tenant, you need to think about where you stand on issues such as payment of utilities, maintenance, grounds-keeping, and cleaning.
   
   Also, if the tenant makes improvements to the property, who owns them, you or the tenant? , You may have a set rate for your commercial space, either a flat fee or by the square foot.
   
   You may want to lock in a tenant for as long as possible while the tenant may want it for only a year or two.
   
   Think before you negotiate if you might be flexible on the rent to get a lease term that works best for your investment.
3. 3

   Step 3: List out areas of negotiation with the tenant.

4. 4

   Step 4: List out some potential lease terms and rents.

Detailed Guide

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