7 First-Time Leasing Mistakes Small Business Owners Make—And How to Avoid Them

Leasing your first commercial space is a major milestone. But for many small business owners, the process is filled with traps that can cost time, money, or even threaten the survival of your venture.

Here are the 7 most common mistakes first-time tenants make:

1. Signing Too Quickly – Eager to lock down a space, many rush into agreements without understanding the lease.

2. Not Using a Broker – Landlords have representation. You should too. A good broker can save you far more than their fee (if there is one).

3. Overestimating Needs – Bigger isn’t always better. Paying for unused space can drain your working capital.

4. Underestimating Costs – CAM charges, insurance, taxes, and build-out expenses can add 20-30% to your base rent.

5. Skipping Legal Review – A real estate attorney should review your lease before signing. Always.

6. Ignoring Zoning Rules – Make sure your business is allowed in the space you’re leasing.

7. No Exit Plan – What if you need to move in a year? Ask about subleasing, assignment rights, and early termination options.

Services like BrokerMatch help first-time tenants get connected to brokers who specialize in smaller deals and truly understand small business needs.