What to Do Before Signing a Lease for a Commercial Space

Signing a lease for a commercial space is exciting—but it can also be one of the most expensive mistakes if done too quickly.

Most business owners focus on:

• Location
• Price
• Size

But what they don’t realize is:

👉 The construction requirements of the space can make or break the deal

‍

⚠️ Why You Should NEVER Sign Without Evaluating the Space First

A space might look “move-in ready,” but in reality:

• Electrical may not support your equipment
• HVAC may need a full upgrade
• Plumbing may not match your layout
• Code issues may require major changes

👉 These can add tens (or hundreds) of thousands of dollars after you sign

‍

🧠 Step 1: Walk the Space With a Contractor

Before signing anything:

👉 Bring in a commercial contractor

They can identify:

• Structural limitations
• System deficiencies
• Hidden costs

This gives you a realistic picture before committing

‍

⚙️ Step 2: Evaluate MEP Systems

Mechanical, Electrical, and Plumbing (MEP) systems are the biggest cost drivers.

Check:

• Electrical capacity (amps, panel size)
• HVAC condition and coverage
• Plumbing locations and limitations

👉 These determine whether your business can even operate in the space

‍

📐 Step 3: Confirm Layout Feasibility

Ask:

• Can this layout be modified easily?
• Will walls need to be moved?
• Are there structural constraints?

👉 Some layouts are far more expensive to change than others

‍

🧾 Step 4: Review Permit & Code Requirements

Before signing:

• Check zoning compatibility
• Understand permit requirements
• Identify any code upgrades

👉 Skipping this step can delay your project for months

‍

💰 Step 5: Get a Rough Cost Estimate

Before committing:
👉 Get a ballpark construction estimate

This helps you:

• Budget accurately
• Negotiate tenant improvement (TI) allowances
• Avoid surprises

‍

⚠️ Step 6: Understand Landlord Responsibilities

Clarify:

• What the landlord provides
• What you are responsible for
• TI allowances

👉 This can significantly affect your costs

‍

🏢 Final Thoughts

Signing a lease is not just a business decision—it’s a construction decision.

👉 The smartest clients evaluate the space before signing, not after

‍

📞 Considering a Commercial Space?

We can walk the property with you and break down:

• Costs
• Timeline
• Potential issues

👉 Reach out before you commit.

‍

https://www.cbre.com/offices/corporate/indianapolis/indianapolis-property-search?sort=lastupdated+descending&initialpolygon=%5B%5B45.35957384661978,-82.37963151875%5D,%5B33.91566885676329,-90.33373308125%5D%5D&location=Indiana,+USA&transactiontype=allTypes

https://commercial.century21.com/real-estate/indianapolis-in/LCININDIANAPOLIS/

‍

‍