Efficient Business Guide: What to Look for in a Rental Space

There are plenty of factors to consider when choosing a space for your business: location, size, visibility, monthly rent, and more. This makes energy efficiency easy to overlook when you’re touring a space. But the reality is that operating costs for your space are also important to consider. A seemingly affordable lease can quickly become too expensive if your utility bills are high. That’s why it’s worth looking closely at energy use before signing on the dotted line. Below are some tips to keep in mind when searching for a building to rent for your business. 

Ask for Past Utility Bills

One of the best ways to understand your expected monthly energy costs is to look at past utility bills. If the property manager isn’t able to provide details, see if you can get an estimate. 

Keep in mind that your costs may differ from those of the previous tenant. For example, a retail shop uses energy very differently than a restaurant. 

The other thing you’ll want to understand is the building’s electric rate structure. Some commercial buildings have demand charges or time-of-use rates that can impact your monthly bill. 

Understand the HVAC System

Heating and cooling are likely your largest monthly energy expenses in a rental space. That’s why it’s important to know in advance what kind of HVAC system exists, what kind of fuel it uses, and how old it is. Natural gas is typically the cheapest fuel, while electric resistance baseboards are very expensive to run. Some rental spaces have heat pumps that provide both heating and cooling. 

Commercial HVAC systems are often a little more complicated than what you’re used to at home. Don’t be afraid to ask questions to understand whether the system is appropriate for your business needs. 

Check whether the rental has a smart thermostat, which can help optimize your heating and cooling. If it doesn’t have one, you might be able to install one (and take it with you when you leave). Just make sure it’s compatible with the existing wiring, which might require hiring a professional installer.

Before signing a lease, make sure you’re clear on whether the property manager or the renter is responsible for maintenance and repairs. Those costs add up quickly, especially for an older, less efficient HVAC system. 

Get a Look at the Building

When you’re considering renting a commercial space, it can be hard to get a complete picture of the building’s condition, but there may be clues. 

You likely won’t know how well-insulated the building is, but you can feel for drafts around windows and doors. A drafty space is less comfortable and more expensive to heat and cool. If you see gaps, ask the landlord if you can add  inexpensive solutions like weather stripping or caulk.

Look at the condition of the windows and doors. Large storefront windows are great for visibility and passive heating, but they can also increase your energy costs if they’re old and leaky. 

Know What You Can (and Can't) Change

Make sure you understand what improvements you’re allowed to make in the rental space. Upgrading to LED lighting, adding window shades or awnings, and installing a smart thermostat are all ways to improve comfort and reduce energy use. Clarifying what’s allowed upfront with your property manager helps avoid surprises down the line. 

Consider Your Equipment

If you plan to bring your own equipment into the space, efficiency matters. Look for ENERGY STAR®-certified appliances, which might cost a little more upfront but will be less expensive to run over time. 

Get Started

Choosing a commercial space isn’t just about what you pay in rent—it’s about what it costs to run your business every day.

Asking a few key questions and looking around during your walkthrough will help you avoid unexpected expenses and secure a space that improves your bottom line.

Efficiency Smart can help answer your questions about energy efficiency in commercial spaces. Call us at 877-889-3777 or email us at [email protected].