In football, you don’t learn much from watching a team warm up. You learn from the film. Where did the play break down? What did nobody notice until it was too late?
Touring commercial space works the same way. The fresh paint and the big front windows are the warm-up. The zoning code, the electrical panel, and the parking count are the film. Here are the eight questions that separate a good-looking space from a good space.
Question 16 of 50
Where do I find commercial space for lease?
Short answer: Listed commercial space appears on sites like LoopNet, CREXi, and the AIR CRE listing service used by California brokers. Many good spaces never hit those sites, so also drive your target areas, watch for upcoming vacancies, and work with a tenant rep who can reach landlords and brokers directly about off-market options.
- Public listing sites: LoopNet and CREXi show much of what’s actively marketed.
- Broker networks: AIR CRE and broker-to-broker relationships surface spaces before or without public listings.
- Driving the market: Small landlords often just put a sign in the window.
- Upcoming vacancies: A business closing or relocating next quarter won’t be listed yet.
Question 17 of 50
What should I look for when touring commercial space?
Short answer: On a tour, check the condition and age of HVAC, electrical capacity, plumbing locations, restroom count and ADA access, ceiling height, parking, signage options, visibility, loading access, neighboring tenants, and any signs of water damage or deferred maintenance. Take photos and measurements of everything.
A tour checklist worth printing:
- HVAC: number of units, age (look for the data plate), and who maintains them
- Electrical: panel size in amps, single or three-phase
- Plumbing: locations of drains and water lines, restroom count
- Accessibility: entrance, path of travel, restrooms
- Ceiling height and condition, signs of roof leaks
- Parking: count, shared or assigned, peak-hour competition
- Signage: building, window, monument, or pylon rights
- Neighbors: noise, odors, hours, and possible competitors
- Visit twice, at the hours your customers would come
Question 18 of 50
How do I know if a space is zoned for my business?
Short answer: Check the property’s zoning designation with the city or county planning department, then confirm your specific use is permitted by right, allowed with a Conditional Use Permit (CUP), or prohibited. Also confirm the lease’s permitted use clause allows your business. Never sign until both the zoning and the lease use clause line up.
Three layers have to agree:
- Zoning: Does the city allow your use in this zone?
- Building code occupancy: Is the space built for your use type (assembly, business, mercantile, etc.)? A change of occupancy can trigger major upgrades.
- Lease use clause: Does the landlord allow it, and do other tenants hold exclusives that block it?
A Conditional Use Permit is discretionary approval for uses that may fit a zone with conditions, common for churches, schools, childcare, gyms, alcohol sales, and auto uses. CUPs can take months and aren’t guaranteed. If you need one, make approval a lease contingency.
Question 19 of 50
What is a second-generation space and why does it matter?
Short answer: A second-generation space was previously built out for a similar use, such as a former restaurant with a hood and grease interceptor or a former dental office with plumbed operatories. Leasing one can save substantial time and buildout cost, but you should verify the condition and code compliance of everything left behind.
Second-generation space is often the difference between a restaurant opening in four months or fourteen. But “existing hood” and “working, code-compliant hood sized for your menu” are not the same sentence. Have a contractor walk it before you sign. Ask why the last tenant left, too.
Question 20 of 50
How do I find out if there's enough parking for my business?
Short answer: Cities set minimum parking ratios by use, so a space that worked for a retail store may not have enough stalls for a restaurant, medical office, gym, or church. Ask the planning department what your use requires, then count available stalls, check whether parking is shared, and visit at your peak hours.
Parking problems show up in two places: at the permit counter, where a change of use can require more stalls than exist, and in your revenue, where customers who can’t park don’t come back. Ask the landlord for any parking allocation to be written into the lease.
Question 21 of 50
What does 'as-is' mean in a commercial lease?
Short answer: ‘As-is’ means the landlord delivers the space in its current condition and is not responsible for improvements or repairs before you move in. You take on the cost of fixing anything that doesn’t work or meet code. It’s negotiable, and you can ask for a delivery condition warranty on major building systems.
A common middle ground: the space is delivered as-is cosmetically, but the landlord warrants that the roof, HVAC, electrical, and plumbing are in good working order for the first 6 to 12 months. If something fails in that window, it’s on the landlord. Get it in writing and have a qualified contractor verify delivery condition before you accept the keys.
Question 22 of 50
What is a CASp inspection and why does it matter in California?
Short answer: A CASp (Certified Access Specialist) inspection evaluates whether a property meets state and federal accessibility requirements. California law requires commercial landlords to state in the lease whether the property has had a CASp inspection. Accessibility responsibility and cost for your space should be clearly assigned in the lease.
Accessibility lawsuits are common in California, and a tenant can be named alongside the landlord. Before signing, ask:
- Has the property had a CASp inspection? Can I see the report?
- If not, who pays if I request one, and who pays to correct violations?
- Who is responsible for the path of travel and common area restrooms?
Question 23 of 50
Should I lease or buy commercial property for my business?
Short answer: Leasing preserves cash and flexibility, which suits most new and growing businesses. Buying can make sense for stable, established businesses planning to stay 7 to 10+ years. SBA 504 and 7(a) loans allow owner-occupied purchases with as little as 10 percent down, generally when the business occupies at least 51 percent of an existing building.
Upfront cash
Deposit and buildout
Down payment, closing costs, buildout
Flexibility
Higher
Lower
Equity
None
Builds over time
Cost certainty
Rent increases each year
Fixed-rate options available
Fits
Startups, growth phase, uncertain size
Stable operations, long horizon
Talk to your CPA about the tax side before you decide. Either way, the building has to fit your operations first.
Frequently asked questions
Can I see a space more than once before signing?
Yes, and you should. Visit at different times of day, and bring your contractor or designer on a second visit.
Who pays for a CUP application?
Usually the tenant, since the permit is for the tenant’s use. You can negotiate for the lease to be contingent on approval.
Can a space be zoned right and still not work?
Yes. Parking, building occupancy type, other tenants’ exclusives, or HOA and CC&R restrictions can still block a use.
What’s the one thing about your business that a space absolutely has to get right?
