Complete guide to renting commercial property in the US

As a business owner in the UK, expanding to the US will require finding the right space to work from. In most cases, that means leasing commercial property.

Whether you’re a startup, SME or larger company, we’ll give you the lowdown on how renting commercial property works in in the US. This includes the fees, lease types, laws, tax info and it breaks down how the rental process works from start to finish.

You’ll also find tips for keeping your US business expenses (like commercial rent) in check. With a Wise Business account, you can hold and manage 40+ currencies, including USD, all in one place.

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Types of commercial leases in the US

The US has four main types of commercial leases.¹ The major difference between them is who pays what. Each lease type shifts responsibility for expenses like taxes, insurance, and maintenance differently. Here’s how each one works.

Key things to know about commercial lease agreements in the US

You should read the terms before committing to a lease. The contents of the contract will determine your expenses, liabilities and flexibility. Here's what to look out for:

• Lease structure and hidden costs: Rent is not all that you might need to pay. Most leases will have additional fees such as property tax, building insurance, utilities, and maintenance. These expenses can accumulate very fast. They appear over rent in net leases. They’re included in gross leases but the rent is typically increased to meet it. Always request a breakdown and look at how charges can increase or decrease.
• Length of lease and renewal terms: Many commercial leases run for several years. Longer terms can give you stability and help with planning. But they reduce flexibility. If your business might grow or change, look for options to renew, expand, or exit early. These terms are negotiable and should be in writing.
• Build-outs and space improvements: Most tenants need to fit out the space to suit their business. You’ll need to know who pays for that work and who owns it afterward. Some landlords offer allowances. Most times, when the lease expires, you’re required to restore the space to its original state. This may be expensive if you fail to plan ahead.
• Maintenance and repairs: Ask who does repairs. In most situations, the tenant does the day-to-day maintenance. In triple net leases, for instance, you’re liable to maintain large systems such as HVAC or electrical.² Check these terms carefully, especially in old buildings.
• Exit options and flexibility: Your lease should account for what happens if your needs change. Can you sublet the space? Is it possible to transfer the lease to another tenant? Are there fines on early departure? These clauses protect you in case of any change in your business or you need to move.
• Insurance requirements: Most leases require tenants to hold liability insurance. Some ask for property coverage or that the landlord is named as an additional insured. If you do not meet these requirements, you may breach the lease. Make sure your insurance lines up with what’s in the agreement.
• Key terms in the fine print: Commercial leases are not standard. Terms vary by state, property, and landlord. Watch out for use restrictions, signs, operating hours, noise, or odors. Other leases come with personal guarantees, which implies that you will be liable even in case of business failure. These are risks that can be avoided through proper guidance.
  Legal review: Commercial lease law in the US favours landlords. The majority of the protections that are present in residential law are not applicable. You need a lawyer when you are renting a place the first time or are signing a long-term lease. It will save you time, money and stress.

Do I need insurance to rent a commercial property in the US?

In the US, commercial leases normally require tenants to be insured. The details will vary depending on the landlord and the property, however, the following are what you typically need:

How to rent a commercial property in the US – step-by-step

So, here are the general procedures of renting commercial property in the US:

• Be clear on what your business needs: Determine the size, layout, location, and budget that will fit your business. Consider zoning, access, foot traffic, and services in the area.
• Gather your documents: You will require paperwork to demonstrate that you are registered and that you are financially stable. We’ll list the typical requirements below.
• Start your search: Brokers arrange most commercial listings. It is common in the US to have landlords cover the broker fees, and therefore using one can save time and effort.
• Hire professionals: Commercial leases are not simple. Hiring a commercial real estate attorney who knows local laws and standard terms is a good idea.
• Bargain important conditions with the landlord: You'll typically negotiate the broad terms before the lease is written, such as rent, lease term, who pays what and any build-out allowances. This is in most instances done by way of a Letter of Intent.
• Check zoning and permit regulations: Ensure that the property is zoned to your kind of business. There are certain applications that might need special permission or permission by the city before you can operate.
• Sign the lease: After preparing the lease, get your attorney to go through it and then sign. The words in commercial leases are very different and nothing should be assumed.
• Insure and make the deposit: Before you can get possession of the property, landlords will normally insist on evidence of insurance and security deposit.
• Plan your move-in: Get a written consent and any construction permit from the landlord in case of any changes in the space. Then plan utilities and services in advance of your start date.

What documents do I need?

The following documents may be required when applying or signing a commercial lease in the US:⁵

• Government-issued ID (passport or driver's licence)
• Legal entity documents (LLC articles, incorporation certificate or partnership agreement)
• Business licence or registration certificate.
• Evidence of tax ID (IRS Employer Identification Number)
• Evidence of the address of your business or registered agent.
• Financial records like bank statements or profit and loss statements.
• Insurance certificates that indicate general liability and property insurance.
• Personal or corporate guarantor information (if requested by the landlord)

How much does commercial property cost to rent in the US?

The cost of renting commercial property in the US is a matter of location, type of premises and the real estate category of the building. Cities like New York and San Francisco have some of the highest rents, whereas other business hubs like Dallas, Atlanta, and Chicago are relatively cheaper.

As a rough estimate, the average national rate of office space is approximately 37 USD per square foot annually. The average retail space is 23 USD per square foot and the industrial space is slightly less than 8 USD.⁶

The table is a glance at the average annual rent per square foot of office space in major cities in the US:⁶

Most markets quote prices on an annual basis. But in some states, like California, you can find monthly rates instead. You should also ensure that you get the gross or net rates because this will affect the amount you pay. Most building costs are usually included in the rent under gross leases, but under net leases, tenants must pay separately to cover building costs such as taxes, insurance, and maintenance.

Other costs to consider

Besides the base rent, there are other expenses incurred in renting a commercial property in the US. These can include:

• Broker or agent fees: In most US markets, the landlord pays the broker fee, but always verify this in writing.
• Legal fees: You may need to hire a commercial property attorney, which costs money.
• Security deposit: This is typically one to three months’ rent, depending on the lease agreement.
• Insurance: General liability insurance is usually compulsory. You can also require property or contents coverage.
• Fit-out/build-out costs: The cost of refurbishing or customizing the space to your business is usually your cost unless negotiated otherwise.
• Utility installation and recurring costs: This includes electricity, water, internet and garbage collection.
• Permit or inspection fees: There are local business permits or building inspections that you have to pay before opening certain spaces.
• Maintenance or common area charges: You might contribute to the maintenance or services of the building in net leases.

These prices differ by location and the type of property and therefore, it is advisable to seek estimates and offers and compare before entering into a lease.

Can UK citizens rent commercial property in the US?

Yes, UK citizens are allowed to rent commercial property in the US. Foreign nationals renting commercial space are not subject to any federal limitations. But to sign a commercial lease, you will have to form a legal business entity in the US, either a Limited Liability Company (LLC) or corporation.

Most landlords will also demand evidence of such registration, US-based business bank account and evidence of financial stability. You might also require a registered agent and local business licence before operating on the property depending on the state.

Top tips for office and commercial renting in the US

• Find other secondary markets: New York and San Francisco are expensive, but there are other cities like Austin, Nashville, and Raleigh with good business ecosystems and lower rental prices.
• Look at restrictions on use: Commercial leases in the US are often limited to the nature of the business that can be carried out in the facility. Make sure that your operations are covered by the permitted use clause.
• Understand lease classes and building standards: Class A buildings are more costly but usually have better maintenance, facilities and management. Class B or C may fit smaller budgets and typically may require higher tenant responsibility.
• Monitor history of operating expenses: Ask the landlord to give you historical information of utilities, taxes, and common area expenses. This will help you to detect irregular increases or to plan year-end reconciliations in net leases.
• Examine local incentives: Incentives are offered to foreign businesses or startups to attract them, such as tax credits, grants, or reduced rent programmes in some states and cities within the US. These are some of the points to consider before signing a lease.
• Build relationships locally: The US business culture is transactional, but locally, networking is significant, especially with landlords, agents, and city officials. Red tape can be minimised by a local connection.
• Send money abroad easily: opening a digital business account like Wise Business account is beneficial when you need to pay your rent in the US. You are able to send and receive 40+ currencies without incurring the high bank charges and unfavourable exchange rates.

Grow your business in the US with Wise Business

While you’re looking to launch your business in the US, it’s also worth making sure you’re set up with the right business account.

Open a Wise Business account and you can hold and exchange at once. It’s quick and easy to open an account in the US, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Paying commercial rent for international offices is made easy. And, you can save costs too. You’ll get local account details that allow you to spend like a local - with low, transparent fees. Whenever you need to send, spend or exchange foreign currencies, you will always benefit from the mid-market exchange rate.

You’ll also benefit from all of these features with Wise Business:

• No ongoing fees, minimum balance requirements or foreign transaction fees
• Debit and expense cards for you and your team, which you can use in
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions
• Use the powerful Wise API for automation and streamlining workflow
• Take advantage of Wise Interest to make your funds work harder when you’re not using them (capital at risk).

With a truly global account, you’ll be all set to grow your business worldwide.

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Sources used

Sources last checked: 23-Sept-2025