Leasing out your commercial space can be a great way to generate consistent income while keeping your property active and well-maintained. Whether you own a retail shop, office building, or warehouse, finding the right tenant and structuring the lease smartly is key to long-term success.
In this blog post, we’ll walk you through the essentials of leasing your commercial space, step by step.
Why Lease Out Your Commercial Property?
Leasing out your commercial property isn’t just a way to “fill a space.” It’s a smart business move that can offer long-term financial benefits, property appreciation, and even peace of mind. Here’s why more and more property owners are choosing to lease instead of sell:
1. Generate Steady, Passive Income
One of the most attractive benefits of leasing your commercial property is the consistent monthly cash flow. Whether you’re retired, managing multiple properties, or simply looking for additional income, a leased space means:
- Predictable rent payments
- Long-term income stability
- Better cash flow planning
2. Retain Ownership & Build Equity
Leasing allows you to retain ownership of your asset while earning a return on it. As time goes by, your property:
- Appreciates in value
- Builds equity that can be used for loans or reinvestment
- Becomes more attractive to future investors or buyers
Selling gives you a one-time payment. Leasing, however, gives you recurring revenue and growing asset value.
3. Maintain Flexibility for Future Use
When you lease instead of sell, you retain full control over your property. This means:
- You can reclaim the space later for your own business
- You’re free to renegotiate or upgrade the lease when the term ends
- You can adapt to changing market demands
Leasing keeps your options open while still earning from your space.
4. Tenants Help with Property Maintenance
In most commercial lease agreements—especially net leases—tenants are responsible for:
- Utility bills
- Routine maintenance
- Repairs
- Property taxes or insurance (in some cases)
That means fewer headaches for you as the owner, especially when compared to residential leasing.
5. Boost Long-Term Property Value
A leased property—especially one with a stable tenant—becomes more valuable and marketable. Why?
- It proves income potential to future buyers or investors
- Increases your property’s credibility and desirability
- Supports higher selling prices if you ever decide to sell
6. Attract Business Partnerships or Co-Investors
A leased commercial space can also help you:
- Secure loans using your rental income
- Collaborate with business partners or developers
- Attract joint ventures for property upgrades or expansions
In short, a rented space turns into a revenue-generating business asset.
7. Peace of Mind & Professional Growth
Many owners find comfort in knowing that their property is:
- Actively used and well-maintained
- Producing income without daily management stress
- Contributing to their financial goals
You can even outsource lease management to a commercial real estate agency, making it a truly hands-off income stream.
How to Determine the Right Rental Price for Your Commercial Space
Setting the right rental price is one of the most important steps in successfully leasing your commercial property. Price it too high, and you risk long vacancies. Price it too low, and you leave money on the table. So, how do you strike the perfect balance?
Here’s a practical guide to help you calculate a competitive and profitable rental price.
1. Understand the Market Rate in Your Area
Start with research. Your commercial rental price must align with the current market trends in your neighborhood.
Where to look:
- Online listing sites like Bproperty, Bikroy, or local real estate portals
- Nearby commercial spaces are currently for lease
- Recently leased properties similar to yours
What to compare:
- Location (street, area, city)
- Size (square footage)
- Property type (retail, office, warehouse)
- Features (e.g., parking, elevator, security, visibility)
3. Factor in Your Property’s Unique Features
Not all commercial spaces are equal. You can increase or decrease your base rate depending on:
Features That Justify a Higher Price:
- Prime location or corner lot
- High visibility or foot traffic
- Free parking or valet service
- Modern interior design or renovations
- Furnished or plug-and-play setup
- Secure access, CCTV, or 24/7 monitoring
Features That May Lower the Price:
- Inconvenient location
- Limited access or visibility
- No elevator in a multi-story building
- Older building with outdated amenities
5. Evaluate Tenant Type and Business Model
The kind of business you’re renting to can also influence rental pricing.
- A startup or new business might need more flexible pricing to get started
- An established franchise or corporate tenant can typically pay market or premium rates
- If you’re offering percentage leases (common in retail), factor in the tenant’s expected revenue
6. Plan for Vacancy and Downtime
Vacancy is a part of commercial leasing. Smart landlords factor in a vacancy rate when calculating rent.
Example:
If your space might be vacant 1–2 months per year, consider increasing rent slightly to cover that potential loss over the 12 months.
Choosing the Right Lease Type
Selecting the appropriate lease structure is critical for balancing risk, income, and long-term asset management. Below are the most common commercial lease types, along with their characteristics and considerations for landlords:
1. Gross Lease (Full-Service Lease)
- Definition: Tenant pays a fixed rent; landlord covers all property-related expenses.
- Covers: Property taxes, insurance, utilities, and maintenance.
- Ideal For: Office buildings and properties with shared amenities.
- Advantages: Simple for tenants, easier to manage rent collection.
- Landlord Consideration: You bear all operational costs, which may fluctuate.
2. Net Lease
A category of leases where the tenant pays rent plus some or all property expenses. Variants include:
a. Single Net Lease (N)
- Tenant Pays: Base rent + property taxes.
- Landlord Pays: Insurance, maintenance, and other costs.
b. Double Net Lease (NN)
- Tenant Pays: Base rent + property taxes + insurance.
- Landlord Pays: Maintenance and structural repairs.
c. Triple Net Lease (NNN)
- Tenant Pays: Base rent + property taxes + insurance + maintenance.
- Landlord Pays: Typically, only structural repairs (if any).
- Ideal For: Long-term retail or industrial tenants.
- Advantages: Lower risk and overhead for landlords; predictable income.
3. Modified Gross Lease
- Definition: A hybrid model where the landlord and tenant share some property expenses.
- Flexible Terms: Typically negotiated per tenant agreement.
- Ideal For: Multi-tenant buildings where shared utility or service costs are split.
- Advantages: Balances cost responsibility between both parties.
What to Expect After Signing the Lease
After signing the commercial lease, property owners should be prepared to take several important follow-up steps to ensure a smooth transition and a professional relationship with the tenant. The priority is to collect the security deposit and initial rent payment, confirming both before handing over the property.
A formal handover should then take place, including a walkthrough inspection with the tenant to document the property’s condition, record meter readings, and exchange keys or access cards. It’s also helpful to provide a welcome packet with emergency contacts, maintenance information, and building rules.
Following this, landlords should establish a clear rent collection system, schedule regular property inspections, and stay proactive in handling maintenance responsibilities as outlined in the lease. Monitoring lease compliance, such as permitted use or subletting clauses, is equally essential.
Banglamart Is Looking to Buy or Lease Commercial Spaces
At Banglamart, we’re actively looking to buy or lease commercial spaces from property owners who are ready to turn their vacant or underutilized properties into profitable opportunities. Whether you own an office floor, retail shop, warehouse, or mixed-use property, we’re interested in flexible and strategic real estate partnerships.
Are you a property owner with space to offer? We’re interested.
What We’re Looking For:
- Commercial office floors
- Retail shops and showrooms
- Warehouses and storage spaces
- Mixed-use commercial properties
- Prime locations or emerging business zones
Why Partner with Banglamart:
- Immediate interest in leasing or purchasing
- Fair market offers and flexible terms
- Transparent, hassle-free negotiation process
- Fast decision-making and documentation
- Long-term, professional property usage
Ideal for Property Owners Who:
- Have vacant or underutilized commercial spaces
- Are you looking for reliable, corporate tenants or buyers?
- Want guaranteed rent or return on investment
- Prefer dealing with a professional business partner
📞 Let’s Connect:
If you have commercial space available for lease or sale, Banglamart is ready to talk business. Contact us today to explore how we can turn your property into a profitable opportunity.
Frequently Asked Questions (FAQs)
Banglamart is interested in a wide range of commercial spaces, including office buildings, retail shops, warehouses, and mixed-use properties, especially those located in prime business areas or emerging commercial zones.
We offer flexible leasing options tailored to your preferences, including both short-term and long-term leases.
Commonly required documents include property ownership proof, property tax receipts, existing lease agreements (if any), and any building compliance certificates.
You can reach us via our website contact form, email, or phone. Our team is ready to provide detailed guidance and next steps tailored to your property.
