Here is what most new tenants do. They call a broker. They say, “I’d like to see the space. Here is what I’m looking for.”

That makes sense. But it is not the best first step.

Before you tour, you need a few things ready. Here is why.

What will the landlord ask you first?

Say you tour a space and you like it. Next, you send a letter of intent. That is a short letter that says what you want in your lease.

The landlord, or the landlord’s agent, will ask you right away:

• Tell me about your business.
• Do you have a business plan?
• Do you have sales projections?
• Do you have an LLC?
• Do you have a bank account?

Why does the landlord care?

The landlord wants to know you are ready to lease. They do not want you to open and then go out of business.

Think of it this way. You pay rent out of your sales. So your rent is just a part of what you sell.

How much rent can you pay?

Ask yourself two things before you look at any space:

1. What will my sales be?
2. How much of my sales can I spend on rent?

Answer those first. Then you know what you can pay.

What do these words mean?

• Business plan. It says what you sell and who will buy it. It shows how you will make money.
• Sales projections. Your best guess at what you will sell each month.
• Financials. Your money records, like tax returns and bank statements.
• LLC. A type of company. You can sign the lease in its name.

Lease payments are just a percentage of your sales. Do you know what your sales are going to be?

In Kas’s words

Should you call a tenant rep first?

Yes. It does not hurt. A tenant rep is an agent who works for you, the tenant.

Set up a talk. Ask what you should have ready. Ask what you can get, too. For example, ask about a 12,000-square-foot space in Westlake. What can you get in white box condition?

White box means a plain, clean space. It has walls, lights and a restroom. You add the rest.

You can have that talk with a tenant rep. You can also have it with the landlord’s agent. Then do your homework. Do it before you start to look at places.

What this means for you

Before you tour one space:

1. Write your business plan and your sales projections.
2. Know how much of your sales can go to rent.
3. Set up your LLC and bank account. Get your financials ready.

My take

It does not hurt to talk to a tenant rep. But do your homework before you even start to look at places.

How I can help

I help business owners find space in Westlake and across the west side. See my listings, or read more Westlake articles. Strong numbers can also help you get a better deal. Read how a strong tenant got free rent in Rocky River.

Tell me about your business in the form below.