8 Top Factors To Consider Before Renting Commercial Space

Selecting a perfect place for your commercial works can be quite stressful, because it can be the turning point in the rise or fall of your company, and negotiating a good deal may seem intimidating. Well, you can rethink. It’s all about the right questions to ask when needed! The answers to your questions will help you strategize your deal.

What Is A Commercial Space?

An area, building, apartment or any real estate rented or sold as business premises can be termed as a commercial space or property. It may be an office building, a shopping mall, a warehouse, a retail store or hotel- depending on the type of business going on at that place. For example, whether it be a shop on rent in Pune or a big hotel in Mumbai, it is a commercial property.

There are certain conditions that come into play while deciding the perfect place to lease for your business. Following are the most important factors that should be considered before renting any commercial property:

Your Specific Budget Of Renting Costs

The costs of renting commercial properties vary on the location, size of the property, the designs, amenities available, condition of the building, and many other factors. You must keep a certain budget in mind when you are searching for a property. Will your business make enough money to pay off the rent as well as keep profit?

 If you are just starting out, you must keep some of the profit for expansion and progress of the business, so you can’t spend much on the rent only. During budgeting, keep in mind that there can be additional charges like registration fees, taxes, etc.

Locational Closeness To Targeted Customers

The location of a commercial property can be the decisive factor of the company’s rise or fall. While selecting the perfect location, keep in mind the following points

  • Is it easily accessible?
  • Is it close to the company’s target customers?
  • Is there a chance for more development of the company at this place?
  • Is parking available? Is it free?
  • What are the nearby commercial projects?
  • Are there any eateries nearby?

Answers to these possible questions can help you find the most convenient location.

The Actual Size Of The Property 

Physical examination of the property(s) you have selected is essential. Visit the property physically and evaluate it yourself. Don’t just rely on anyone else’s judgment, measure the area yourself. Your commercial space should be able to accommodate your employees, customers, and also commercial goods and infrastructure. Keep a lookout for imperfections to be repaired.

Facilities Available 

What amenities are available in the building? You must keep the following facilities in mind

  • Are restrooms available and usable?
  • Is there a kitchen or cafeteria space?
  • Are the electric connections in proper condition?
  • Is water connection available or not?

There are many more factors. Do your research thoroughly before renting the space.

Is There Space To Grow Or Expand?

You will possibly need more space if your business sees a surge. Lookout for the potential of expansion when selecting your commercial property. Does the space have room for expansion if you need more employees or infrastructure? Will it meet your future needs? Does it have storage space for more merchandise? You have to keep in mind that once you have settled, you will have a set customer base and relocation can pose a problem in that.

The Length Of Lease Timeline

Your contract should be absolutely legalized. Be clear about how long you want the property rented for and know the norms of renewal of the contract for later use. Have the details imprinted in your contract and don’t forget to get them signed by both authorities. You can opt for long-term lease if you are planning to settle your business there because longer leases allow lesser rents.

Security Provided By Building Authorities 

Security system for any commercial space is very important. Your place will have all the merchandise and business funds (from the daily transactions) to be taken care of against theft or robbery. Also, public interests should be taken care of. Security systems like CCTV and alarms are welcome. You can ask the property owner for security or hire a security company to secure your office.To ensure the safety of those precious commodities and jewelry,request for security guards, especially those armed with AR-10 rifles, or flat-out military support.

Maintenance And It’s Costs

Keep a lookout for how well the building is maintained by the owner and how much they charge for maintenance after renting. Ask the owner how they take care of repair works and other issues. Also, check in the neighborhood about the owner’s reputation and image of the building.


  • Is a business license needed to rent a commercial property?

A business license may not be needed to rent a property but it will be absolutely necessary to run a business there. 


  • How to negotiate on renting a commercial space?

All commercial leases have room for negotiation. Negotiate on the terms of free parking, power backups, free rent facilities, access to telephone and other communication, free wi-fi, lesser security deposits, concessions, discounts, fixturization period, etc.


  • What type of insurance is required and how much?

Ask the owner and bank personnel about what kind of insurance will be suitable for the purpose. Also try to know about how much down payment is possible, go for the least possible amount because you can pay the EMIs well once you have started earning from the business. 

Things to remember:

  • Do not fall into scams, do your research properly on the property beforehand.
  • Discuss with the owner on not letting your business competitor in the same building. 
  • Note what type of lease is being offered to you. 
  • Check on many properties before selecting one.
  • Hire a real estate agent or lawyer to negotiate the terms as they have more knowledge about it.
  • Keep a lookout for any legal trouble that the property may have had before.
  • Check on the layout of the space to see if it works for you.


You also have to consider some factors like availability of suppliers and labors, registration procedures, minimum employee wages in the area, etc. before renting the commercial space. Also, discuss the potential of buying the property in the future if there is an increase in business.

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