How long does the commercial leasing process take?

Most retail and office deals take 4–6 months from first tour to opening. Medical, restaurant, and ground-up projects run 6–12 months.

Do I need a broker to lease commercial space?

Not legally, but a tenant rep broker is free (landlord pays commission) and typically saves 10–25% on total occupancy cost through market intelligence, LOI leverage, and lease negotiation.

What percentage of revenue should rent be?

Retail: 6–10% of gross revenue is the industry benchmark. Medical: 8–12%. Restaurants: 6–8% of sales for QSR, 8–10% for full-service.

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How to Lease Commercial Space: A Step-by-Step Tenant Guide

Q: How much does it cost to lease commercial space?

In Southlake, retail runs $30–$60 PSF base rent NNN and office runs $32–$42 PSF modified gross. Add pass-throughs, utilities, buildout, deposits, and legal to model total occupancy cost.

The exact 10-step process professional tenant reps use - from budget to opening day.

Leasing commercial space is a 4- to 9-month process with dozens of decisions, and every mistake compounds. This is the process professional tenant reps use for retail, office, and medical clients - from setting a defensible budget to accepting delivery and opening the doors.

The 10-Step Commercial Leasing Process

1. Define requirements - SF, budget, use, parking, signage, timing, buildout scope.
2. Set total occupancy budget - target rent should be 6–10% of projected revenue for retail, 8–12% for medical, and a fixed dollar cap for office.
3. Engage a tenant rep broker (free - landlord pays). Sign an exclusive representation agreement so the broker can negotiate hard on your behalf.
4. Market survey - broker builds a spreadsheet of qualifying spaces with rent, TI, delivery, and landlord history.
5. Tour 5–10 spaces. Score each on the same criteria: visibility, cotenancy, buildout, parking, HVAC condition, delivery date.
6. Send LOIs to 2–3 finalists simultaneously. Playing landlords against each other is the single largest source of leverage tenants have.
7. Negotiate LOI to a signed term sheet. Anchor NNN caps, TI allowance, free rent, and renewal options here - not in the lease.
8. Lease drafting and redlines. Retain a real estate attorney; the $2,500–$7,500 legal fee is trivial vs a 60-month liability.
9. Permitting, buildout, and delivery. Typical retail buildout is 8–16 weeks after permit; medical can run 16–24 weeks.
10. Accept delivery, punch list, then rent commencement. Get a written delivery-condition acknowledgment before you sign off.

How Much Does It Cost to Lease Commercial Space?

Total occupancy cost = base rent + NNN pass-throughs + tenant-paid utilities + amortized buildout beyond TI allowance. For a Southlake retail space at $48 base + $14 NNN across 2,000 SF, plan on $10,333/month total rent plus $8,000–$20,000/month in utilities, insurance, and payroll depending on use.

Upfront capital: first month's rent, last month or security deposit (usually 1–3 months), tenant improvements over TI allowance, FF&E, signage, permits, and legal. Budget 15–25% of annual rent as upfront capital for a standard retail or office deal.

Frequently Asked Questions

Related Guides

Letter of Intent (LOI) Guide

A tight LOI decides the deal. Here's every term to include - with sample language and negotiation levers.

Commercial Lease Types

Pick the wrong structure and you'll overpay for years. Here's how each lease type actually works.

NNN Lease Guide

Everything tenants, landlords, and investors need to know about triple net leases - with real numbers and negotiation levers.

Have a real deal to talk through?

Daniel Weber offers free, no-obligation strategy conversations for tenants, landlords, and investors across Southlake and DFW.

(817) 559-1235 Email Daniel