FOR TENANTS · NEEDS ASSESSMENT

Before you look at space, do your homework.

Leasing commercial space starts before the first tour. Landlords want to see a real business with a plan, a budget and a way to pay for the build-out. Use this page to check what you have ready, learn the lease terms you will hear, and then fill out the assessment so Kas can help you find the right space.

Start the assessment

See the checklist

STEP 1 · YOUR HOMEWORK

What to have ready before you start looking

Landlords will ask about your business, your plan and your finances before they agree to terms. Having these answers ready makes you a stronger tenant and saves weeks.

01

Know your business name

Decide on the name your business will operate under. It goes on the letter of intent, the lease and the sign.

02

Form your LLC

Landlords sign leases with a business. Register your LLC with the Ohio Secretary of State and get an EIN before you sign anything.

03

Write a business plan

Explain what you sell, who your customers are and how you will reach them. Landlords and lenders will both ask to see it.

04

Build sales projections

Estimate your sales month by month for at least the first year, ideally three. Your rent budget comes from these numbers.

05

Set your rent budget

Know how much you can pay each month and what share of your sales that is. Step 2 below shows how.

06

Line up your funding

Know how you will pay for build-out, equipment and opening costs: cash, an SBA loan, investors or a mix.

STEP 2 · YOUR RENT BUDGET

How much rent can your business carry?

Rent is one of your biggest fixed costs, and it is due every month whether sales are strong or slow. Start with your sales projections, then decide what share of your sales can go toward rent.

Count the full cost. Budget for base rent plus NNN charges (property taxes, insurance and common area maintenance).
Pick a percentage of sales. A common rule of thumb is to keep total rent under about 10% of gross sales, and many businesses aim lower. Your accountant can help you set the right target for your industry.
Do the math. Commercial rent is usually quoted per square foot, per year. Square feet × rate ÷ 12 = monthly rent.
Plan for move-in costs. Expect a security deposit and first month’s rent at signing.

Kas does not provide tax, legal or accounting advice. Talk with your accountant and attorney about your plan.

EXAMPLE: SET YOUR BUDGET

$600,000 projected yearly sales × 8% toward rent = $48,000 a year

$4,000 / month

total budget for base rent plus NNN charges

EXAMPLE: PRICE A SPACE

2,000 SF × $18 per SF per year ÷ 12 = $3,000 base rent
NNN charges of $5 per SF per year add about $833

$3,833 / month

fits inside the $4,000 budget

STEP 3 · KNOW THE TERMS

Lease terms you will hear on day one

These words come up in every lease conversation. Kas will walk you through each one, explain what it means for your budget and show you what can be negotiated.

Triple net (NNN) lease

You pay base rent plus your share of the building’s property taxes, insurance and common area maintenance. These charges are billed on top of rent and can change from year to year.

Gross or modified gross lease

One rent payment that includes some or all of the building’s operating costs. Always ask which costs are included and which you pay separately, such as utilities.

CAM charges

Common area maintenance: your share of the cost to run the shared parts of the property, like the parking lot, snow plowing, landscaping and lighting.

Personal guarantee

Your personal promise to pay the lease if your business cannot. Most landlords ask new businesses for one. It can often be limited, for example to a set dollar amount or a set number of years.

Tenant improvement (TI) allowance

Money the landlord puts toward building out your space, usually quoted per square foot. A bigger allowance usually comes with a longer lease or higher rent.

Free rent (rent abatement)

Months at the start of the lease when you pay no base rent. Some landlords offer it so you can build out the space yourself before you open.

As-is vs. turnkey

“As-is” means you take the space the way it is and pay for any changes. “Turnkey” means the landlord builds it out to an agreed plan before you move in.

Security deposit

Money the landlord holds in case of unpaid rent or damage. New businesses are often asked for a larger deposit than established ones.

Lease term and renewal options

How long the lease lasts and whether you have the right to extend it. Longer terms often mean more help from the landlord with build-out.

STEP 4 · PLAN YOUR BUILD-OUT

What does the space need, and what will it cost?

Most spaces need work before you can open: walls and layout, restrooms, plumbing, electrical, HVAC, kitchen or special equipment, and finishes. That work often costs more and takes longer than new tenants expect, so get real numbers before you sign.

How landlords handle build-out

Tenant improvement money. Some landlords are open to giving a TI allowance toward your build-out.
Landlord work. Some landlords are willing to do some or all of the work before you move in.
Free rent up front. Others prefer to give a couple of months of free rent and have you do the work yourself.

Knowing what your space needs and what you can spend lets Kas negotiate the option that fits your business best.

Using an SBA loan? SBA 7(a) loans can help pay for build-out, equipment and working capital. Talk with a lender early, because landlords want to know your funding is in place.

BUILD YOUR TEAM

Kas can help you put together the right team.

Ask Kas to connect you with:

A general contractor
An architect
A commercial designer
An SBA lender

Together they can tell you how much money you will need, how long the work will take and what permits or other requirements the space has.

STEP 5 · HOW THE PROCESS WORKS

From “let’s start looking” to a signed lease

01

Assessment and first call

Fill out the assessment below. Kas reviews your answers and talks through your needs, your budget and the lease terms that matter.

02

“Yes, let’s start looking”

Everything starts here. Once you are ready, Kas searches for spaces that fit your needs and budget and tours them with you.

03

Letter of intent (LOI)

Every deal starts with a letter of intent. Kas prepares it to lay out the key terms (rent, lease length, free rent, TI allowance and who does the work) and negotiates them with the landlord.

04

Lease agreement

Only after the LOI terms are agreed do you move to the lease agreement. Have an attorney review the lease before you sign.