Expenses Your Business Should Budget For When Leasing Commercial Space

Expenses Your Business Should Budget For When Leasing Commercial Space

  • 2 March 2021
  • camden

Many successful companies—both large and small—choose to lease their commercial real estate instead of buy. There are many advantages to being a tenant: It reduces upfront costs, lowers ongoing expenditures and gives you and your business much-needed flexibility.

The brick and mortar storefront for selling products and services can range in size from a small boutique to a large department store. As you search for commercial space for your business, it’s important to know about some of the expenses you may need to budget for so you can have a successful renting experience. Here is a list of possible leasing expenses we think you should know about.


Obviously, you know you’ll need to pay rent, but be sure to ask about how long your rent amount is locked in for, and what the schedule is for any possible rent increases. This will allow you to budget accordingly.

NNN Expenses

These are triple-net leases where the tenant is responsible for the base rent, along with property taxes, building insurance and the upkeep of common areas such as lobbies, parking lots and restrooms.


Most leases do not include the cost of utilities, such as water, heating, air conditioning and electricity. The leasing company may be able to provide ballpark amounts for these expenses, or you might be able to ask another tenant in the building. The range of expenses could be different depending on the size of the space you need.

Load Factor

The rent amount of most commercial leases is calculated based on rentable square footage instead of usable square footage. Rentable square footage includes a portion of shared areas used by other tenants, and is calculated using a load factor.


Most commercial spaces don’t come furnished, so be sure to leave space in your budget for furniture. In addition to desks and conference room tables, you may also need seating and decor for your reception and waiting areas, the stock room or meeting spaces.

Camden Management is here to help you find the commercial space that is right for you and your business. From office to retail space, we provide the support you need to run and grow your business. We have beautiful, desirable spaces in a wide variety of locations to serve your business needs, and we always help our tenants understand their leases and the expenses they may incur. If you are interested in expanding your business and would like to learn more about Camden Management, please contact us. We look forward to working with you and helping your business reach new heights!






Copyright © 2023 Camden Management, Inc.

Designed by: Web Strategy Plus