What Costs Go Into Leasing a Retail Space?

The biggest mistake tenants make when preparing to rent a commercial property is the failure to consider all of the renting costs beyond the monthly rent payments. Like renting an apartment, every retail space for rent is different when it comes to terms, what is included, and what is not.

When comparing properties for renting businesses, the decision will often come down to the best financial deal that fits within your needs and budget. It is important to factor in all fees that each property’s renting costs include to make the best determination.

Renting Costs for Commercial Property Leases

The following is a comprehensive list of the expenses you can expect to incur in the process of leasing retail space for rent.


When comparing rents of different commercial rental properties, make sure to factor in which operating expenses are included and which would be responsible for. Compare the total yearly and monthly rent totals for all properties you are looking at.

Common Area Expenses

Items such as garbage pickup, common area maintenance, and repairs are usually taken care of by the landlord and divided up equally among the tenants. These ongoing costs can vary depending on the needs of the property’s common areas.

Property Insurance

Commercial landlords pass along the costs of property insurance onto their tenants. The division of insurance costs is based on the square footage of each of the property’s tenants.


Like property insurance and common area expenses, property taxes are also equally divided among the tenant. Tax fees can change dramatically from year to year.


One of the most important factors to find out from prospective landlords is which of the utilities are included in the cost of the rent. Utilities like water, electricity, and sewage can have a big impact on the bottom line of your renting costs. You will almost always have to pay for your internet and phone service.


Another service that is sometimes covered by commercial rental agreements and other times not are janitorial services to keep your company is clean and sanitary. Make sure to factor in this expense in your final analysis.

Misc. Costs

Other costs that you will need to know whether they are covered in the commercial renting costs include

  • Pest control
  • HVAC service and maintenance
  • Plant service
  • Building and office repairs and maintenance

It is crucial to factor in all of these costs when making a comparative analysis to determine the best rental space for your business. Pour over lease agreements carefully to make sure you know exactly what is included and what is not.

Get Started at MyListing.com Today

MyListings.com is a one-stop commercial real estate online resource for the listing of and searching for commercial properties for sale and retail space for rent. Find a wide range of available commercial property rentals for your business, or list your property on MyListing.com. Log on for complete information and to find the perfect commercial property to rent for your business.

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