Commercial Real Estate Made Simple
How to Evaluate Office Space Before Signing a Commercial Lease
A practical checklist for evaluating office location, layout, parking, buildout, operating costs, lease terms, and future growth before committing to a space.
Start With What the Business Actually Needs
A good office is not simply the nicest space or the lowest asking rent. The right office should support the way the business operates today while providing enough flexibility for the future.
Before touring properties, define the practical requirements that matter most: preferred location, approximate square footage, employee count, private offices, conference rooms, parking, visibility, signage, access, technology needs, and expected move-in timing.
On This Page
Jump to the part of the office-space evaluation that matters most to your search.
1. Confirm the Space Is the Right Size
Too little space can create an early relocation problem, while too much space can increase occupancy cost unnecessarily. Consider current staffing as well as realistic growth during the lease term.
Current Employees
How many people regularly work from the office, and how many need dedicated workstations or private offices?
Future Growth
How many employees could the company realistically add before the lease expires?
Shared Areas
Conference rooms, kitchens, reception, storage, collaboration space, and circulation all consume square footage.
Hybrid Work
If employees work remotely part of the week, the company may need fewer dedicated workstations and more shared spaces.
2. Understand Rentable vs. Usable Square Footage
In multi-tenant office buildings, the square footage used to calculate rent may include more than the space located behind the tenant’s suite door. Depending on the building and lease structure, tenants may pay for a proportionate share of common areas such as lobbies, corridors, restrooms, or shared building spaces.
Ask how the quoted square footage was calculated and what portion is actually usable by your business. For a detailed explanation of usable area, rentable area, common-area allocation, and load factors, read our rentable vs. usable square footage guide.
3. Look Carefully at the Existing Layout
A space that is already configured for your operation can save time and buildout expense. A poorly matched layout may require substantial demolition, construction, electrical work, furniture changes, or permitting.
- Number and size of private offices
- Conference and meeting rooms
- Reception and waiting area
- Open-office or workstation areas
- Kitchen or break room
- Storage and file areas
- Restroom access
- Natural light and window placement
- Accessibility and circulation
4. Determine Who Pays for the Buildout
If changes are required, determine what work the landlord will provide, whether a tenant improvement allowance (TI) is available, and which costs will be the tenant’s responsibility.
The lease should clearly address approval, design, permitting, construction responsibility, timing, cost overruns, and ownership of improvements.
5. Check Parking Before You Get Attached to the Space
Parking problems can become daily operational problems. Confirm how many spaces are available, whether they are reserved or shared, and whether the parking supply can support both employees and visitors at peak times.
Also consider accessible parking, snow-storage areas, delivery access, employee shift changes, and whether neighboring tenants create heavy parking demand.
6. Evaluate the Location
Location can affect employees, clients, vendors, recruiting, visibility, commute times, and long-term business growth. The “best” location depends on the company rather than a single universally desirable submarket.
- How convenient is the property for employees?
- Is it easy for clients or customers to find?
- How close is it to major roads or freeways?
- Are restaurants, hotels, banks, and other useful services nearby?
- Does the location support recruiting and employee retention?
- Is the surrounding area consistent with the company’s image and customer expectations?
Businesses exploring options can start with Crabill & Company’s office space in Michigan and current commercial real estate listings.
7. Review HVAC and After-Hours Access
Office users often overlook heating and cooling until after move-in. Ask whether the suite has independent controls, what hours the building HVAC normally operates, and whether after-hours HVAC creates an additional charge.
Businesses with evening, weekend, medical, call-center, or other extended operations should make sure building access and HVAC schedules fit their needs.
8. Verify Internet and Technology Requirements
Reliable connectivity can be just as important as the physical office. Confirm which internet providers serve the building and whether the suite can support the company’s bandwidth, redundancy, security, phone, server, and technology requirements.
Businesses with specialized technology needs should verify service availability before signing the lease rather than assuming it can be added later.
9. Understand the Total Occupancy Cost
Base rent is only one possible component of the total cost. Depending on the lease structure, tenants may also be responsible for taxes, insurance, operating expenses, utilities, janitorial service, parking, or other charges.
If the office is offered under a triple-net structure, review our guide to what NNN means in commercial real estate. Our guide to CAM charges also explains common-area and operating-cost concepts.
| Cost Category | Questions to Ask |
|---|---|
| Base rent | What is the starting rate and how does it increase during the lease term? |
| Operating expenses | What expenses are passed through and what is the current estimate? |
| Utilities | Which utilities are included and which are separately metered or billed? |
| Parking | Is parking included, reserved, limited, or separately charged? |
| Buildout | Who pays for improvements and what TI allowance, if any, is available? |
| Furniture / moving | What additional upfront costs are required before occupancy? |
10. Review Signage and Visibility
If customers visit the office, signage can have real value. Confirm what exterior, monument, directory, suite-entry, or building signage is permitted and whether there are additional fees or design standards.
11. Make Sure the Lease Term Fits the Business Plan
A longer lease can provide stability but may reduce flexibility. A shorter lease can provide flexibility but may offer less certainty about future occupancy costs or availability.
Consider expected staffing, growth, relocation risk, capital investment in the space, and whether the business may eventually prefer ownership. Our lease vs. buy commercial property in Michigan guide covers that broader decision.
12. Pay Attention to Renewal, Expansion, and Exit Options
Businesses should think beyond the initial lease term. Depending on the situation, useful provisions may include renewal options, expansion rights, rights of first offer, assignment rights, or sublease rights.
These provisions can be especially valuable if the company’s future space needs are uncertain.
13. Inspect the Building — Not Just the Suite
A well-finished suite does not necessarily mean the overall building will work well for the business. Consider the condition and operation of:
- Common areas and entrances
- Elevators
- Restrooms
- Roof and exterior condition
- Heating and cooling systems
- Lighting
- Parking areas
- Snow and ice management
- Security and access systems
- Property management responsiveness
14. Think About Future Growth Before Signing
Moving offices can be expensive and disruptive. Before committing to a space, consider whether the office can support likely growth over the lease term or whether nearby expansion space may become available.
Office Tour Checklist
- Location works for employees and clients
- Square footage fits current and future staffing
- Layout supports daily operations
- Parking is sufficient
- Buildout requirements are understood
- HVAC hours and controls fit the operation
- Internet and technology services are available
- Signage options are acceptable
- Lease expenses are clearly understood
- Renewal and flexibility provisions have been reviewed
- Building condition and common areas are acceptable
- Total occupancy cost fits the business plan
How a Commercial Real Estate Broker Can Help
A broker can help a business compare multiple office alternatives based on more than asking rent. That can include location, market rates, layout, buildout, parking, operating expenses, lease structure, and long-term space strategy.
Crabill & Company provides commercial real estate brokerage services for businesses, property owners, investors, and developers throughout Michigan.
Office Leasing FAQs
What should I look for when touring office space?
Evaluate location, usable layout, parking, buildout needs, HVAC, technology, accessibility, signage, building condition, lease costs, and whether the space can support future growth.
Should I choose the office with the lowest rent?
Not necessarily. Compare total occupancy cost, buildout requirements, parking, operating expenses, location, layout, and the operational value of each property.
What is the difference between usable and rentable square footage?
Usable square footage generally refers to space used directly by the tenant, while rentable square footage may also include a proportionate share of common areas, depending on the building and measurement method.
Who pays for office buildout?
It depends on the transaction. A landlord may provide improvements or a tenant-improvement allowance, while the tenant may be responsible for some or all additional construction costs.
How far in advance should a business start looking for office space?
The timeline depends on space size, market availability, buildout requirements, approvals, and move complexity. Starting early provides more time to compare options and negotiate terms.
Looking for Office Space in Michigan?
Explore current Crabill & Company office listings or contact our team to discuss your preferred location, square footage, parking, layout, buildout, and lease requirements.