Evaluate the Tenant and the Proposed Use

Choosing an office tenant involves more than agreeing on rent. Owners should understand the business, its ability to meet the lease obligations and whether its operations fit the property.

A structured review helps identify potential problems before the owner commits to improvements, concessions or a long-term lease. It also gives the prospective tenant a clearer understanding of what is needed to move forward.

For Tampa Bay office and medical office owners, the following questions provide a practical starting point.

What Business Will Occupy the Space?

Confirm the business’s legal name, ownership, operating history and proposed activities. Identify the entity that will sign the lease and the person authorized to sign on its behalf.

Ask for a clear description of how the space will be used. A general description such as “professional office” may not reveal activities that affect parking, utilities, building systems or neighboring tenants.

Review relevant business licenses and professional credentials where applicable. Confirm the proposed use with the appropriate local jurisdiction rather than assuming that a previous office use establishes approval for every new business.

Does the Business Fit the Property?

Understand how the tenant expects to operate, including employee count, visitor traffic, deliveries and anticipated growth.

• Staffing: How many people will work in the space, and how many will be present at the same time?
• Visitors: How many clients, patients or customers are expected during peak periods?
• Parking: Can the property accommodate staff and visitors without creating conflicts?
• Growth: Will the space support the business’s expected needs during the lease term?
• Building capacity: Are the layout, permitted occupancy and building systems appropriate for the proposed operation?

For medical tenants, discuss the actual services being provided. Equipment, plumbing, electrical demand, patient access and waste handling may require additional review depending on the practice.

What Changes Will the Tenant Need?

Ask the prospective tenant to describe required improvements before negotiating an allowance or promising a delivery date.

Separate necessary work from preferred upgrades. Identify any changes to walls, plumbing, electrical service, HVAC, signage or accessibility that require professional review or approvals.

Clarify who will prepare plans, obtain permits, perform the work and pay costs above any agreed landlord contribution. The lease should address the approved scope, responsibilities and timing.

A clear improvement plan helps the owner evaluate both the initial investment and the space’s usefulness after the tenant eventually leaves.

What Are the Expected Operating Hours?

Operating hours affect building access, heating and cooling, cleaning schedules, parking and security arrangements.

Confirm whether the tenant needs evening or weekend access and whether additional services or charges apply. Discuss noise, deliveries and other activities that could affect neighboring occupants or nearby properties.

Longer operating hours should not be treated as a substitute for appropriate building security, maintenance or emergency procedures.

Can the Tenant Support the Lease Obligations?

Financial review should consider more than the proposed rent. The business also needs resources for operating expenses, improvements, moving costs and other obligations associated with occupying the property.

Depending on the business and transaction, relevant information may include:

• Recent business financial statements and tax returns.
• Evidence of available funds for startup, relocation or expansion costs.
• Operating history and prior landlord references.
• A business plan and financial projections for a newer operation.
• Credit information obtained with appropriate authorization.
• Information supporting any proposed guaranty or other lease security.

Projections should be evaluated alongside the assumptions and funding behind them. An established company and a new practice may require different supporting information, but each should demonstrate a credible plan for meeting the lease obligations.

Handle financial documents securely and limit access to those involved in evaluating the transaction.

Evaluate the Entire Lease Commitment

The strongest proposal is not always the one with the highest starting rent. Consider the tenant’s financial capacity alongside the lease term, improvement contribution, concessions, security and the cost of preparing the space.

A tenant requiring substantial specialized improvements may present a different ownership decision from one that can occupy the existing layout. The expected return should be considered together with the owner’s upfront investment and potential future leasing costs.

For related guidance, read how to compare office rental rates and total occupancy costs.

Use a Consistent Review Process

Establish relevant business and property criteria, explain the requested information early and document the review. Use a consistent process for comparable applicants while allowing for differences in business structure and proposed use.

Resolve questions about use, funding, improvements and authority to sign before finalizing the transaction. Have the lease and any guaranty reviewed by the appropriate legal advisers.