how to lease office space for small business

Here’s a step-by-step guide to help you lease office space for your small business confidently and strategically.

1. Assess Your Business Needs

Before looking at listings, take time to figure out what you truly need. Ask yourself:

How many employees will use the space?
Do you need private offices, open work areas, meeting rooms, or a reception?
Is proximity to clients, public transportation, or amenities important?
Will you need space for future expansion?

Tip:

Plan for at least 150–250 square feet per employee to allow for desks, equipment, and shared spaces.

2. Set a Budget

Office leases are often long-term commitments. Establish a monthly budget that includes:

Base rent
Utilities
Internet/tech costs
Parking (if not included)
Maintenance and cleaning

Hidden Costs to Watch:

CAM (Common Area Maintenance) fees
Property taxes
Insurance
Security deposits

3. Choose the Right Location

Location can influence your brand perception, employee satisfaction, and client experience. Consider:

Safety and reputation of the area
Commute time and accessibility
Nearby amenities (cafes, gyms, banks, etc.)
Visibility and signage opportunities

Pro Tip:

Use Google Maps and business directories to research neighborhoods and scout out competitors or complementary businesses nearby.

4. Start Your Search Early

Office space leasing takes time. Start your search at least 3–6 months in advance of your move-in target. Use:

Commercial real estate websites (LoopNet, Zillow Commercial, CREXi)
Local real estate agents specializing in commercial leases
Business associations or co-working spaces

5. Hire a Tenant Representative

A commercial real estate agent or tenant rep can:

Find listings that match your needs
Negotiate terms on your behalf
Protect your interests in the lease

Best part? They’re usually paid by the landlord, not you.

6. Visit and Inspect Properties

When touring spaces, don’t just look at aesthetics. Evaluate:

Natural light and ventilation
HVAC systems
Electrical and internet capacity
ADA compliance
Parking availability

Take notes and photos so you can compare later.

7. Understand Lease Types

There are several lease types in commercial real estate:

Gross Lease: You pay one flat fee; landlord covers all expenses.
Net Lease: You pay rent plus a share of expenses (taxes, insurance, maintenance).
Modified Gross Lease: A hybrid of both.

Understand what’s included before signing anything.

8. Negotiate the Lease Terms

Always negotiate. Here are key terms to review:

Lease length (1–5 years typical for small businesses)
Renewal options
Rent increases/escalation clauses
Build-out allowances (for renovations or customization)
Exit clause or early termination rights

Consider having an attorney review the lease before you sign.

9. Prepare Legal and Financial Documents

Landlords will likely ask for:

Business license
Financial statements
Tax returns
Personal or business credit history
Guarantor info (sometimes)

Have these ready to speed up the process.

10. Plan Your Move-In

Once your lease is signed:

Schedule utility transfers and internet installation
Order furniture and supplies
Set up insurance coverage
Notify clients and update business addresses

You’re now ready to make your new office feel like home!

Final Thoughts

Leasing office space is a big step, but it doesn’t have to be overwhelming. By understanding your needs, budgeting wisely, and negotiating smartly, you can secure a space that supports your business goals and growth.