Below is the typical Commercial Leasing Process in NYC & the U.S, which applies to Retail, Office, Industrial, and other commercial property types.
✅ 1. Define Your Requirements
Clarify the following key factors:
Property type: retail, office, restaurant, medical, warehouse, etc.
Size requirements: e.g., 1,000–5,000 SF
Budget: rental range, willingness to take on build-out costs
Location criteria: foot traffic, transit access, industry synergy, legal restrictions (e.g., tobacco, alcohol)
📌 Note: Commercial leases typically run 3–10 years, so long-term business planning is essential.
✅ 2. Site Search & Property Tours
Work with a commercial real estate advisor to shortlist properties
Tour spaces and assess critical factors such as:
Visibility & frontage
Floor level & ceiling height
Ventilation, load capacity, signage, parking, etc.
Compare features and lease terms across properties
🎯 Victoria adds value by matching businesses to optimal spaces and uncovering “hidden costs” in lease terms.
✅ 3. Submit Letter of Intent (LOI)
Send a non-binding Letter of Intent to the landlord outlining:
Lease term, start date
Base rent, free rent period
Build-out timeline
Responsibility breakdown (landlord vs. tenant)
This sets the foundation for negotiation.
✅ 4. Lease Negotiation & Signing
Attorneys for both parties review and negotiate the formal Commercial Lease Agreement
Key elements often include:
Triple Net (NNN) charges*
CAM (Common Area Maintenance) fees
Annual rent escalations
Build-out responsibilities
Use restrictions (Use Clause)
Insurance, tax, and maintenance terms
⚠️ Legal review is strongly recommended to avoid costly surprises later.
✅ 5. Security Deposit Payment
Typically ranges from 2–6 months’ rent
Factors include lease term, tenant creditworthiness, and business type
Startups or international tenants may require a larger deposit or guarantor
Apply for relevant city permits:
Business license, construction permit
Health permit, signage approval, etc.
May involve electrical, plumbing, ventilation, or special-use reviews (e.g., restaurants, medical use)
📌 Timeline management is crucial, especially for F&B or healthcare spaces.
✅ 7. Possession & Grand Opening
After build-out completion and inspections:
