The Process to Find Commercial Real Estate (CRE): From Requirements to LOI & Signature

Whether you’re a business owner looking for office space, a retailer expanding into new markets, or an investor seeking industrial properties, the process of securing commercial real estate (CRE) follows a structured path. Understanding each step can help you save time, avoid pitfalls, and negotiate better terms.

The process to find and secure CRE generally follows six steps:

1. Define requirements

2. Choose a broker

3. Tour properties

4. Compare options

5. Negotiate LOI

6. Sign agreement. 

Step 1: Define Your Requirements

Before reaching out to anyone, clarify what you need:

• Property type: retail, office, industrial, warehouse, or mixed-use

• Square footage: size, layout, and any special requirements

• Budget: rental rate or purchase price, plus additional costs (CAM, taxes, insurance)

• Location: target neighborhoods, proximity to customers, employees, or highways

👉 For deeper insights into market conditions, you can check resources like CBRE Market Reports.

Step 2: Find a Commercial Real Estate Broker

The next step is selecting a qualified CRE broker. A good broker provides market knowledge, access to listings, and expertise in negotiations.

• Choose a broker who specializes in your property type.

• Verify credentials and experience in your target market.

• Ask about fee structures: in many markets, the landlord or seller pays the broker’s commission.

👉 You can start your search through industry directories, referrals, or platforms like LoopNet.

Step 3: Tour Properties and Build a Shortlist

Your broker will present a curated list of options based on your criteria. Touring properties allows you to evaluate:

• Location visibility and accessibility

• Parking, loading docks, and logistical considerations

• Condition of the building and potential improvements

• Nearby tenants or property uses

Virtual tours are helpful, but in-person visits are best for assessing fit and functionality.

Step 4: Compare Options and Financials

After touring, you and your broker will narrow down to a shortlist. At this stage, analyze:

• Base rent or asking price

• Operating expenses (NNN, CAM charges)

• Tenant improvement allowances or landlord concessions

• Lease structure (gross lease, modified gross, or triple net)

Building a comparison matrix can make financial and operational trade-offs clearer.

Step 5: Submit a Letter of Intent (LOI)

A Letter of Intent (LOI) is a non-binding document outlining the main business terms:

• Rental rate or purchase price

• Lease duration or closing timeline

• Renewal or expansion options

• Key contingencies (financing, due diligence, inspections)

The LOI ensures both parties align on the basics before legal documents are drafted.

👉 For more detail, see NAIOP’s CRE glossary.

Step 6: Negotiate and Sign the Agreement

Once the LOI is accepted, attorneys draft the lease agreement (for tenants) or purchase contract (for buyers). Negotiations often focus on:

• Repair and maintenance obligations

• Rights of assignment or subleasing

• Legal protections and remedies

• Closing conditions and timelines

After revisions and approvals, both parties sign, and the deal is finalized.

Ready to start your search? Get matched to the right Broker.