Find a US Commercial Space for Your Business

Published on and written by Cyril Jarnias

Have you decided to embark on the entrepreneurial adventure in the United States? Congratulations! One of the crucial steps in your setup will be finding the perfect space for your business. Whether you’re looking for retail space, offices, or a warehouse, this guide will help you navigate the American real estate market and find that hidden gem. Discover our expert tips for a successful transatlantic establishment.

The Space Hunt: Winning Strategies to Find Your Ideal Location

Finding the right space for your business in the United States might seem like a daunting task, but with the right strategies, you can significantly simplify this process. Here are some effective methods to uncover that perfect spot:

Hire a specialized commercial real estate agent. These professionals have excellent knowledge of the local market and can save you valuable time. They have access to exclusive databases and can negotiate on your behalf. Plus, their expertise will help you avoid common pitfalls when leasing or purchasing commercial property.

Utilize online platforms dedicated to commercial real estate. Websites like LoopNet, CoStar, or CREXi are filled with listings for all types of commercial spaces. You can conduct targeted searches based on your specific criteria (size, location, budget, etc.) and get detailed information about each property.

Don’t hesitate to walk through neighborhoods that interest you. Sometimes, the best opportunities aren’t listed online. By exploring commercial areas, you might spot “For Lease” or “For Sale” signs and contact property owners directly. This approach can help you find offers before they’re widely advertised.

Good to Know:

Finding commercial space in the United States often requires a multi-channel approach. Combine the services of a real estate agent, online research, and on-the-ground exploration to maximize your chances of finding the ideal location.

Key Players: The Best Agencies for Your Search

To optimize your search for commercial space in the United States, it’s crucial to rely on reputable and experienced real estate agencies. Here are some of the top agencies you can count on:

CBRE Group is one of the global leaders in commercial real estate. With a presence in all major American cities, CBRE offers a comprehensive range of services, from space search to asset management. Their local market expertise and extensive network make them a preferred partner for foreign companies establishing themselves in the United States[1].

JLL (Jones Lang LaSalle) is another leading agency, recognized for its innovative approach and deep understanding of market trends. JLL offers customized solutions for businesses of all sizes, with a particular focus on technology and sustainability in commercial real estate[3].

Cushman & Wakefield stands out for its expertise in site selection and lease negotiation for office, retail, and warehouse tenants. Their approach based on workplace and logistics strategies makes them a smart choice for companies looking to optimize their location[10].

Don’t forget local agencies specializing in your target region. They can offer more detailed knowledge of the local market and unique opportunities. For example, if you’re targeting New York, agencies like Newmark or Avison Young might be particularly relevant.

  • Compare offers from multiple agencies to get a comprehensive market overview
  • Check references and testimonials from other international companies that have used their services
  • Ensure the agency understands your specific needs as a foreign company

Good to Know:

Major commercial real estate agencies in the United States often offer valuable complementary services for foreign companies, such as regulatory compliance advice or space planning.

Paperwork and Formalities: Essential Documents to Finalize Your Lease

Leasing commercial space in the United States involves a series of documents and formalities that are essential to master to avoid any delays or complications. Here are the main items to prepare:

The business plan is often the first document requested by landlords or agencies. It should clearly present your business, financial projections, and development strategy. A solid business plan will reassure the landlord about your ability to pay rent long-term.

Proof of your legal status in the United States is crucial. You’ll need to provide your company registration documents, such as Articles of Incorporation or Articles of Organization and your EIN (Employer Identification Number). These documents prove that your company is legally established and authorized to operate on American soil[5].

Financial statements for your company are also required. They typically need to cover the last three years of operation and include the balance sheet, income statement, and cash flow statement. For newly created companies, detailed financial projections will be necessary.

A personal guarantee is often requested, especially for young companies. This is a personal commitment from the director or a guarantor to cover rent payments if the business defaults. This requirement can sometimes be negotiated, particularly if you offer a larger security deposit.

Professional liability insurance is generally mandatory. The landlord will want to ensure you’re covered in case of damage to the space or to third parties. Make sure the coverage meets the lease requirements.

  • Bank and business references
  • Valid identification (passport for foreign directors)
  • Proof of sufficient funds to cover initial rent and expenses

Good to Know:

Carefully preparing these documents in advance will significantly speed up the leasing process. Some landlords may have additional requirements, so stay flexible and ready to provide supplementary information if needed.

The Bottom Line: Understanding Rental Costs in the United States

When it comes to leasing commercial space in the United States, it’s crucial to understand the cost structure to avoid unpleasant surprises. Prices vary considerably depending on location, property type, and local market conditions.

The base rent is typically expressed in dollars per square foot per year. For example, in cities like New York or San Francisco, rents for quality offices can easily exceed $100 per square foot per year, while in medium-sized cities, they might range between $20 and $50[3]. For retail spaces or warehouses, rates can be significantly different.

Common Area Maintenance (CAM) charges are added to the base rent. They cover maintenance of common areas, security, and sometimes property taxes and building insurance. These charges can represent a significant additional cost, sometimes up to 30% of the base rent.

Utilities (electricity, water, gas, internet) are often the tenant’s responsibility. Depending on the lease type, these costs may be included in the charges or billed separately. It’s essential to clarify this point during negotiations.

The security deposit is typically equivalent to 1 to 3 months of rent. For foreign or newly established companies, landlords may request larger guarantees.

Don’t forget to account for space improvement costs. Some landlords offer a Tenant Improvement Allowance, but this is often insufficient to cover all expenses.

  • Negotiate rent-free periods to offset setup costs
  • Carefully examine rent escalation clauses in the lease
  • Consider subleasing options if you need flexibility

Good to Know:

Rental costs in the United States may seem high, but they often reflect the quality of infrastructure and commercial opportunities available. A thorough cost-benefit analysis is essential to assess the profitability of your establishment.

Emerging Cities: The Best Options for an Economical Establishment

While major American metropolises like New York, Los Angeles, or San Francisco naturally attract foreign companies, their prohibitive costs can hinder many establishment projects. Fortunately, the United States is full of emerging cities offering excellent value for businesses seeking expansion.

Austin, Texas, is positioning itself as a growing technology hub. With average commercial rents around $35 per square foot per year, significantly less than in Silicon Valley, the Texas capital is attracting more and more innovative companies. Its dynamic ecosystem, high quality of life, and absence of personal income tax make it a prime destination[3].

Raleigh-Durham, North Carolina, is part of the famous Research Triangle, a globally recognized innovation hub. Rents there are competitive, with an average of about $25 per square foot per year for quality offices. The region benefits from a highly skilled workforce thanks to its renowned universities.

Nashville, Tennessee, is emerging as a diverse business center, particularly attractive for healthcare and music sectors. With average commercial rents around $30 per square foot per year, Nashville offers an excellent compromise between moderate costs and growth opportunities.

Phoenix, Arizona, stands out for its business-friendly climate and competitive operating costs. Rents for quality office spaces average around $28 per square foot per year. The city particularly attracts companies in logistics and technology sectors.

  • Evaluate tax incentives offered by these emerging cities
  • Consider the availability of skilled labor in your sector
  • Analyze upcoming infrastructure projects that could enhance your location

Good to Know:

These emerging cities often offer establishment assistance programs for foreign companies, including tax reductions, staff training, or space search assistance. Don’t hesitate to contact local economic development agencies for more information.

Official Support: Establishment Assistance You Shouldn’t Miss

The United States, keen to attract foreign investment, has implemented various establishment assistance programs at the federal, state, and local levels. These initiatives can significantly reduce your costs and facilitate your setup.

The SelectUSA program, managed by the U.S. Department of Commerce, is the main entry point for foreign investors. It offers personalized support, information on local markets, and can connect you with economic authorities in different states[6].

Employment tax credits are among the most common incentives. For example, the Work Opportunity Tax Credit (WOTC) offers tax reductions to companies that hire workers from certain targeted categories. These credits can reach several thousand dollars per eligible employee.

Foreign Trade Zones allow companies to import, store, and re-export goods without paying customs duties. If your business involves international trade, this option can generate substantial savings.

Subsidized training programs are offered by many states to help companies train their local workforce. For example, Georgia Quick Start offers customized training fully funded by the state for companies creating new jobs.

  • Technology companies can benefit from research and development tax credits
  • Manufacturing industries often have access to equipment tax exemptions
  • Green companies may qualify for energy efficiency grants

Good to Know:

Assistance programs vary considerably from state to state and even from city to city. A thorough analysis of available incentives in different locations can significantly influence your establishment choice and reduce your initial costs.

Negotiate Like a Pro: Tips to Secure the Best Deal

Negotiation is a crucial art when it comes to leasing commercial space in the United States. With the right strategies, you can obtain favorable conditions that will positively impact your business long-term.

Know the market. Before starting any negotiation, conduct thorough research on market prices in your area of interest. Tools like CoStar or LoopNet can provide valuable data on local trends[7]. This knowledge will give you a definite advantage during discussions.

  • Lease term and renewal options
  • Rent-free periods (particularly to offset improvement costs)
  • Rent escalation clauses
  • Subleasing or lease assignment rights

Use competition as leverage. Don’t hesitate to mention (tactfully) that you’re considering other options. This can encourage the landlord to be more flexible with their terms.

Offer guarantees in exchange for better conditions. For example, if you’re willing to sign a longer lease, you might negotiate lower rent or property improvements at the landlord’s expense.

Hire a professional. A lawyer specialized in commercial real estate law or an experienced broker can help you navigate the subtleties of American lease agreements and negotiate clauses in your favor[1].

Good to Know:

Flexibility is often the key to successful negotiation. Identify your absolute priorities and the points you’re willing to compromise on. This approach will allow you to stand firm on essentials while showing goodwill on other aspects.

Avoiding Pitfalls: Points to Watch for a Smooth Lease

Leasing commercial space in the United States can be a complex process, filled with pitfalls for unwary foreign entrepreneurs. Here are the main points to keep in mind to ensure a trouble-free lease.

Watch out for triple net leases (NNN). Very common in the United States, these leases mean the tenant pays, in addition to rent, property taxes, building insurance, and maintenance. These costs can significantly increase your expenses, so make sure you understand and budget for them[3].

Beware of relocation clauses. Some leases include a clause allowing the landlord to move you to another space in the building. If such a clause is unavoidable, negotiate strict conditions and compensation for moving expenses.

Check the space’s compliance. Make sure the space complies with American accessibility standards (ADA) and local regulations specific to your business. Non-compliance could result in significant costs for bringing the space up to code.

Carefully examine termination clauses. Early lease termination conditions can be very penalizing. Negotiate flexible exit options, especially if your company is in a rapid growth phase.

Be vigilant about hidden fees. Some landlords charge additional fees for using common areas, parking, or even access outside business hours. Make sure all these elements are clearly defined in the lease.

  • Have a technical audit of the space conducted before signing
  • Negotiate a non-compete clause if relevant to your business
  • Check space usage restrictions to avoid future conflicts

Good to Know:

It’s highly recommended to have your lease reviewed by a lawyer specialized in American commercial real estate law before signing. This initial investment can save you costly surprises long-term.

Conclusion: Ready to Conquer the American Market?

Finding the ideal space for your business in the United States is a crucial step in your international expansion. Although the process may seem complex, with careful preparation and the right advice, you can successfully navigate the American commercial real estate market.

  • Use local professionals to guide you
  • Understand the cost structure beyond just the rent
  • Explore emerging cities for lower-cost opportunities
  • Take advantage of establishment assistance programs
  • Negotiate smartly and stay vigilant about lease clauses

With these elements in hand, you’re now better equipped to make your establishment in the United States a success. Remember that each step of this process contributes to laying the solid foundations for your future success in the American market.

Good to Know:

Flexibility and adaptability are major assets during your space search. The American real estate market is dynamic, and new opportunities can arise quickly. Stay open to possibilities and ready to seize the right opportunity when it presents itself.

Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.

About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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