Questions to Ask When Viewing a Commercial Property
These are questions to ask when looking at commercial property with the agent or landlord beside you, whether that is an office building walk-through, a shop unit or a warehouse, and whether you mean to rent or buy. The 60 questions go in the order the visit does: the owner and the building's history, the outside, the inside, the systems, permitted use, and last the costs and terms worth raising before you leave. Zoning, building codes and lease customs differ by country and state, so use the answers to decide what to check with the local planning office and a commercial property lawyer.
The questions
Each question, and why to ask it
Owner and history
Who owns the building, and would I be dealing with them or a management company?
Why ask it
The owner decides what gets approved and the manager decides how quickly anything happens. A single local owner and a fund holding two hundred buildings behave very differently when your roof leaks or you ask to change the layout.
Who was the last tenant here, and why did they leave?
Why ask it
The answers worth hearing are the specific ones: outgrew it, went under, could not make the parking work, could not get a permit. If all you are told is that the business moved on, ask where it moved to, and call in there if it is nearby.
How long has this unit been empty?
Why ask it
A long vacancy gives you room to negotiate and is also a reason to look harder. Ask whether the asking rent or price has changed since the space was first listed, and what work the owner has done to it in that time.
Who else is in the building, and how long have they been here?
Why ask it
Tenants who keep renewing tell you more about the landlord than the brochure does. Note their trades as well: a gym overhead or a restaurant next door brings noise, smells and parking pressure that an empty unit hides on a quiet morning.
Does the owner have plans to sell, refinance or redevelop in the next few years?
Why ask it
A new owner or a redevelopment scheme can change who you deal with and how long you can count on staying. What protection an occupier has depends on the lease and on local law, so write the answer down and raise it with your lawyer.
Is this only for lease, or would the owner also sell?
Why ask it
Some owners advertise a lease but would sell to an occupier, and the other way round. It changes the whole visit: a buyer has to judge the building as its next owner, roof and boundaries included, while a tenant mainly needs to know which parts the lease would hand to them.
How many other units in the building are empty right now?
Why ask it
Count the dark windows as you walk and compare the total with the answer. Empty neighbors mean less passing trade for a shop, and it is worth asking how shared running costs are divided when part of the building has nobody in it.
Is there adjoining space I could expand into later?
Why ask it
Find out who is next door and upstairs, and roughly when their leases end. Even with no formal right to it, knowing the unit beside you may come free in two years can settle the choice between two similar buildings.
What was on this site before, and has there been an environmental assessment?
Why ask it
It matters most on industrial land and in buildings that once held a dry cleaner, a repair garage or fuel tanks. Ask which reports exist and whether you can have copies, and leave what they mean to an environmental consultant and your lawyer.
Has anyone else viewed the space or made an offer, and how soon does the owner want a decision?
Why ask it
The answer sets your pace. A claim of other interest costs nothing to make, so ask what stage it reached, and do not let a deadline stop you coming back for a second look with someone who knows buildings.
Outside
How much parking is dedicated to this unit, and how is it shared?
Why ask it
Get the number of spaces and the rules that go with them, then come back at the busiest hour of the week. A shared lot that works at eleven in the morning can be full once the restaurant or gym next door is trading.
Is there step-free access from the parking and the street to the front door?
Why ask it
Walk the route yourself, curbs and door thresholds included. Accessibility requirements vary by country and by the age of the building, so ask what the property already meets and who would pay for a ramp or a wider door if your use calls for one.
Where do deliveries arrive, and what size of vehicle can get in?
Why ask it
Picture your own supplier's truck in the turning space, not the agent's car. Ask whether the dock or rear door is shared with other units, whether it keeps set hours, and where a driver waits when someone else is already unloading.
Where could my sign go, and who has to approve it?
Why ask it
Two sets of rules usually apply, the landlord's own sign criteria and the local sign regulations, and the best position on a shared sign may already be taken. Look at what the neighbors have up and ask whether a new tenant would be allowed the same.
How visible is the frontage from the road, and can anything be done about what blocks it?
Why ask it
Stand where a driver or a pedestrian would first notice the unit and look from there. A tree or a neighbor's banner may be something the landlord can deal with, while a bus shelter or a street sign belongs to the city and will stay.
How old is the roof, and when was it last repaired?
Why ask it
Write down the type of roof and whether any warranty is still running, then look for your own evidence: ponding, patches, stained tiles on the top floor. A roof near the end of its life is among the biggest bills a small building produces, whoever ends up paying it.
Where does rainwater go, and has the lot or the building ever flooded?
Why ask it
Check the low corners of the parking lot, the downspouts and the base of the walls for tide marks. If your area publishes flood maps, look the address up yourself as well, since a mapped flood zone can change what insurance costs.
Who looks after the paving, the landscaping and the outside lighting?
Why ask it
Potholes, dead lamps and overgrown beds on the day of a viewing show how the property is run when nobody is trying to fill it. Find out whether the owner does the work and charges it back or each occupier is left to arrange their own.
Where do trash and recycling go, and who collects them?
Why ask it
Waste is easy to forget in an empty unit. See the dumpster area, ask how often it is emptied and what that costs, and say so now if your business produces food waste, clinical waste or a lot of cardboard.
What is the area like after dark, and has the building had break-ins?
Why ask it
The manager may not know of every incident, so read the building too: cameras that plainly do not work, bent shutters, neighbors who have fitted their own grilles. Come back one evening before you decide, particularly if staff would be locking up alone.
Inside
What is the rentable area versus the space I can actually use?
Why ask it
Commercial rent is often charged on rentable area, which includes a share of lobbies, corridors and shared restrooms. Ask for both figures and how they were measured, because two quotes at the same rate per square foot are not the same deal when one building loads on far more shared space.
Can I have a floor plan, and which walls and columns cannot be moved?
Why ask it
A plan lets you test your layout at a desk instead of by eye in an empty room. Structural walls, columns and service risers fix what is possible, so mark them on the plan while the agent is there to point.
What is the clear ceiling height, and what load is the floor rated for?
Why ask it
For warehouse and workshop space these decide whether the building works at all. Measure to the lowest obstruction, such as a beam, a duct or a sprinkler pipe, and ask for the floor rating in writing if you plan racking, machinery or dense filing.
What stays when the space is cleared: partitions, flooring, lighting, counters, racking?
Why ask it
Things you see on a viewing have a habit of leaving with the last occupier. List what you are counting on, ask who owns each item, and have the list attached to any offer, since an inherited kitchen or reception desk can save real money.
Is there an asbestos register or a hazardous materials survey for the building?
Why ask it
Many older buildings have one, and the rules on who must keep it differ from place to place. Ask to see it before you plan any drilling or demolition, and let a qualified surveyor do the reading.
How many restrooms serve this space, and are they mine or shared?
Why ask it
Count them and open the doors. Local code often ties the number of fixtures to how many people a space may hold, and shared restrooms are cleaned on the building's schedule and budget, not yours.
What occupancy limit applies to this space, and where are the fire exits?
Why ask it
Find each exit and check that it opens and leads somewhere clear. The limit turns on exits as much as on floor area and is set by the local fire or building authority, so a room that looks big enough for forty diners or thirty desks may not be approved for them.
Where has water come in before: ceilings, around windows, the basement?
Why ask it
Point at the stained tile or the patch of fresh paint and ask about that spot by name. A leak that was repaired, with an invoice to show for it, is a different matter from one that was painted over for the viewing.
Do the windows open, and how much noise comes through from the street and the neighbors?
Why ask it
Stop talking for a full minute and listen, then do it again in the room farthest from the door. Thin party walls matter most to a clinic, a studio or any office that takes calls all day.
Can we walk in the way a client would, from the street door to the suite?
Why ask it
On an office building walk-through, treat the lobby, the directory, the elevator and the corridor as your own reception, because clients will. Ask when the common areas were last renovated, who cleans them and how often, and whether the directory has room for your name.
Systems
How old is the heating and cooling equipment, and when was it last serviced?
Why ask it
Ask to see the units and the service records, not just to be told. If you are responsible for maintenance and repair, equipment near the end of its life is a bill you are inheriting on a schedule you cannot control.
Does this space have its own thermostat, or is it on a system shared with other units?
Why ask it
Shared plant means someone else's settings and someone else's running hours. Have the heating and the cooling run for a few minutes while you are there, and stand in the corner rooms, which tend to be the first to run too hot or too cold.
What electrical service comes into this unit?
Why ask it
You want the amperage and whether the supply is single or three phase, and a photo of the main panel lets an electrician confirm both later. Upgrading service is expensive and slow, and sometimes limited by what the utility can bring to the building, which quietly rules out kitchens, workshops and some equipment.
Which utilities have their own meter for this unit?
Why ask it
Have the meters pointed out and read the labels. Where one is shared, find out how the bill is split, because a division by floor area leaves a quiet office paying toward the ovens next door.
What did the last occupier pay for electricity, gas and water?
Why ask it
Old glazing and tired equipment can make a cheap unit expensive to run. Actual bills are the best evidence, and if the agent cannot produce them, some utilities will give past usage for the address on request.
What water supply and drainage does the unit have: sinks, floor drains, a grease trap?
Why ask it
Salons, cafes, clinics and labs depend on plumbing more than on anything else in the unit. Cutting a drain into a concrete slab or adding a grease trap is slow, costly work that usually needs a permit, so check what is there against your equipment list.
Is the building sprinklered, and when were the alarm and extinguishers last inspected?
Why ask it
Inspection tags carry dates, so read a couple as you pass. A new use or a new layout can trigger changes to sprinklers and alarms, and the local fire authority is the one to tell you what yours would need.
What internet connection is live in this unit today, and how strong is the mobile signal?
Why ask it
Check your phone in the back room and the basement, not just by the window. Ask which providers already have lines into the building, as bringing in a new one can take a long time and may need the owner's permission.
Is there an elevator, how old is it, and how often has it been out of service?
Why ask it
Ride it during the visit and look for the inspection certificate, which many places require to be displayed. An upper-floor office with one unreliable elevator has a problem on every delivery day and with every client who cannot take the stairs.
What are the access hours, and what building services stop outside them?
Why ask it
Many office buildings turn the air conditioning down and thin out security outside standard hours, and bill after-hours use separately. If your business runs early, late or at weekends, get the charge and the notice period in writing.
Use and permits
What is the zoning, and is what I want to do here permitted outright?
Why ask it
Permitted outright is different from allowed with a special permit, which can take months and can be refused after you have signed. Ask for the zoning designation, or the planning use class where that is the system, so you can check it yourself instead of relying on the agent's summary.
What use does the certificate of occupancy cover?
Why ask it
Zoning governs the land, while the certificate, or whatever your area calls it, records what this building was approved for. If your business differs from the last occupier's, ask the building department what a change of use would involve before you commit.
Would my business need a license tied to these premises, such as for alcohol, food or childcare?
Why ask it
Some licenses attach to the address as well as to the operator, and in some places one will not be granted close to a school or to another holder. Whether a past occupier held one here is a useful clue, and the local licensing office can tell you what yours would take.
Do any other tenants have exclusive rights or use restrictions that affect me?
Why ask it
In multi-tenant retail, one tenant may hold an exclusive on a product category that overlaps yours, which can restrict what you sell. These clauses live in other people's leases and only surface if you ask directly.
Are there building rules on trading hours, noise, cooking smells or window displays?
Why ask it
Multi-tenant buildings often have a rule book separate from the lease. A copy is worth having before you leave, because a ban on evening trading or outdoor seating is cheaper to discover in the parking lot than after the fit-out.
Is the building protected as historic, or inside a conservation district?
Why ask it
Protection can limit what you do to the frontage, the windows and sometimes the interior, signs included. The rules and even the names for them change from one country and city to the next, so take the status from the agent and the detail from the planning or preservation office.
Is any construction, road work or redevelopment planned on this street or this site?
Why ask it
Months of scaffolding or a closed lane can empty a shop that was otherwise well placed. The agent may not know, so look up current planning and permit applications for the surrounding blocks with the local authority too.
Would my fit-out need permits, and how long did approval take for the last tenant who built here?
Why ask it
A real example from this building beats a general estimate. You want to hear which approvals were needed, from the owner and from the city, and whether rent was running during the wait.
Cost and terms
What do I pay on top of base rent, and how is it calculated?
Why ask it
Common area maintenance, property taxes and building insurance are frequently passed through to the tenant. Get the current figure per square foot in writing, because the advertised rent alone tells you very little about the monthly cost.
How have the service charges and other pass-through costs moved over the last three years?
Why ask it
The trend matters more than the current number. A history of steep increases, or a recent tax reassessment, means your total cost rises whatever the rent line says, and it is fair to ask whether annual increases could be capped.
Who is responsible for the roof, the structure, the parking lot and the systems?
Why ask it
A large share of what a commercial lease really costs hangs on this answer. Under many lease forms these repairs fall to the tenant, directly or through pass-through charges, and a new roof or a resurfaced lot can cost a small unit more than a year of rent. Get the answer item by item, then see whether the draft lease agrees.
What condition is the space delivered in, and is there an allowance for fit-out?
Why ask it
As is and turnkey are opposite ends of a large sum of money. If an improvement allowance is offered, ask who manages the work, who owns it at the end of the term, and whether you have to remove it when you leave.
When could I get the keys, and when would rent start?
Why ask it
The gap between those two dates is the time you have to build. Some owners will hold off rent while the fit-out is done, so raise it, and set the handover date against your current lease so you know how long you would be paying for two places.
What term are you offering, and what renewal options come with it?
Why ask it
A renewal option gives you first call on the space when the term ends, with the way the new rent is set written down in advance. Without one, what happens at expiry is up to the owner and, in some countries, to laws that give business tenants a right to renew, so ask how it works there.
Is there an annual rent escalation, and is it fixed or tied to an index?
Why ask it
A fixed percentage lets you forecast every year of the term. An index-linked increase follows inflation and has no ceiling unless the lease gives it one, so ask whether a cap is on the table and work both versions through to the final year.
What deposit or personal guarantee would the owner expect?
Why ask it
For a young business the guarantee is often the heaviest thing in the deal, since it reaches past the company to you personally. Whether it can be limited in time or amount is a matter for your lawyer, but find out at the viewing whether one is expected at all.
If my business changes, can I sublet or assign the lease, and what would ending it early cost?
Why ask it
The way out gets little attention at a viewing, because nobody touring a space plans to leave it. Ask whether consent to a sublet can be refused, whether you stay liable afterwards, and whether any break option exists, then take the answers to a commercial property lawyer before you sign.
If I bought the building, would it come empty or with tenants in place?
Why ask it
A building sold with tenants usually comes with their leases, and with them the rents, the end dates and whatever repairs the owner has promised. A list of who pays what and until when is the first thing to request, and your lawyer should read the leases themselves, since what a sale does to a sitting tenant depends on local law.
If the building is for sale, which surveys and condition reports already exist?
Why ask it
A seller holding a recent building survey, roof report or environmental report can save you weeks of waiting. Treat those as a starting point only, since they were written for the seller, and ask your own advisers which ones you would need to commission again.
Can I come back with my contractor, and what can you send me before then?
Why ask it
A second visit with a builder or an engineer turns impressions into prices. Leave with a named list of what will be emailed: the floor plan, service records, the last few years of charges and the draft lease or sale particulars.
Walking a commercial space
Practical guidance for the conversation itself
What to do at the viewing
- 1Walk the whole building, not only your unit. Look at the roof if you can get up there, the electrical room, the loading area, and the restrooms shared with other tenants.
- 2Go back at a different time of day and stand outside for twenty minutes. Traffic, parking, deliveries and foot flow change completely between ten in the morning and five in the evening.
- 3Photograph the mechanical equipment plates, the electrical panel, and any damage. These photos are useful later when you are comparing spaces or negotiating a condition report.
- 4Measure the parts that constrain you: door widths, ceiling height at the lowest point, the turning space for a delivery vehicle.
- 5Talk to a neighboring tenant if one is open. Five minutes with someone who already pays this landlord is worth an hour with the agent.
On an office building walk-through
- Start in the lobby and take the route a client would, elevator and corridor included, before you look at the suite itself.
- Ask to see a floor that is already occupied. A finished suite shows what the building's standard ceilings, lighting and partitions look like in daily use.
- Sit where a desk would go and check the temperature, the glare from the windows and the sound coming through from the neighboring suite.
- Find the restrooms, the stairwells and the after-hours entrance, and ask how staff get in on a Saturday.
- Look into the electrical and telecom rooms if the agent will open them. Tidy, labeled rooms are a fair sign of how the building is managed.
- Check where visitors park and how far they walk, at the hour your own clients would arrive.
The numbers that are not the rent
- Ask for the total occupancy cost per square foot: base rent plus every pass-through charge, quoted on the same area basis.
- Get the last two years of actual operating expense statements rather than the estimate. An estimate can run low, and under many leases the shortfall is billed to tenants when the year is reconciled.
- Price the fit-out with a contractor before you commit, and assume permits add weeks that you are paying rent through unless you negotiate a rent-free period.
- Put a year of the previous tenant's utility bills beside the rent if you can get them. Single glazing and aging equipment can cost more to run than the rent difference you negotiated.
- Count the deposit as cash you will not have for the fit-out, and if a personal guarantee is wanted, ask whether it could be limited in time or amount.
- Ask whether property taxes have recently been reassessed, or will be after a sale, and who absorbs the increase.
If you are viewing to buy
- Ask whether the building comes empty or with tenants, and for each lease's end date and current rent.
- Walk the boundary and ask what the sale includes: the parking, the yard, any shared driveway or right of way across a neighbor's land.
- Collect the seller's surveys and reports, then ask your own surveyor which of them a lender would accept and which need doing again.
- Find out why the owner is selling and how long the building has been on the market, the same two things you would want to know about an empty unit.
Warning signs on the tour
- The agent cannot say what the pass-through charges ran last year, or offers only an estimate.
- Several units in the building are empty and have been for a while.
- Water staining on ceiling tiles, fresh paint in one patch of wall, or a sealed-off area you are told not to worry about.
- You are told the permit for your use will be fine, but nobody will confirm it with the local planning office before signing.
- Pressure to sign a letter of intent at the viewing, particularly one with terms you have not had a lawyer read.
- The landlord will not say who is responsible for the roof and the parking lot in plain language.