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.
Retail leases in New York generally last 10 to 20 years, with a 10-year term being the most common; office leases range from 3 to 10 years; warehouse leases are mostly 5 years in duration.
✅ 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/commencement date
Base rent + Modified Growth / NNN, free rent
Responsibility breakdown (landlord vs. tenant)
This sets the foundation for negotiation.
Along with the Letter of Intent (LOI), the tenant/applicant is typically required to provide the following materials (from the final lease signatory):
Personal Financial Information:
Personal financial statement
Last two years of personal tax returns
Last 2–3 months of bank statements
One year of W-2 (if applicable)
Business / Store Financials (if applicable):
Last two months of bank statements for at least one existing store
Two years of tax returns / sales records
List of all existing locations (including years in operation, address, and annual revenue)
Brand & Business Overview:
Brand introduction and business category
A PDF presentation of the concept, including menu (if applicable), brand overview, and operational details
Once the LOI is accepted and both parties proceed to lease negotiations, it is common for the tenant to bring in an architect to inspect and verify the existing conditions of the premises.
This may include:
Electrical capacity and upgrade requirements
Ventilation and exhaust systems
Other infrastructure relevant to the intended use
Specific requirements will depend on the proposed business. The tenant, architect, and landlord’s representative will work together to determine any necessary upgrades or modifications.
🎯 Victoria will coordinate and facilitate this process throughout.
✅ 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:
