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Signing a Commercial Lease? Don’t Forget This Electrical Checklist!

Congratulations! You’ve found the perfect spot for your new business. The location is great, the rent is right, and the layout looks perfect. But before you sign that lease, have you looked behind the walls?

One of the biggest “hidden” costs in a new business setup is the electrical system. If the building doesn’t have enough power for your equipment, you could be looking at thousands of dollars in upgrades before you even open your doors. Here is how to do your electrical due diligence like a pro.

 

How to Read a Commercial Panel Schedule

Before you commit to a space, ask the landlord to let you see the electrical panel. Inside the door, you’ll find the “panel schedule”—a list that shows what every breaker is currently doing.

What to Look For:

  • Available Capacity: Are there empty spots for new breakers? If every single slot is full, you might need a second “sub-panel,” which adds to your startup costs.
  • Red Flags: Look for outdated breaker brands (like Zinsco or Federal Pacific) or signs of overheating like discolored plastic.
  • Undersized Service: If you are moving into a space that used to be a quiet office but you plan to run a busy cafe, the existing power service might not be strong enough.

The Big Question: Ask the landlord, “Has the building’s electrical service ever been upgraded, and is there a load calculation on file?” This one question can save you a massive headache later.

 

What Does Your Specific Business Actually Need?

Every business has a different “power personality.” What worked for the previous tenant might not work for you.

  • Restaurants & Food Service: You’ll need heavy-duty, dedicated circuits for walk-in coolers, commercial ranges, and vent hoods. These pull a lot of juice!
  • Salons & Spas: Hair dryers and color processors are notorious for tripping breakers. You’ll need multiple dedicated circuits to keep things running smoothly.
  • Retail & Office: Your main concerns are high-quality lighting, reliable POS systems, and dedicated circuits for your server or data closet.
  • Light Manufacturing: If you have heavy machinery, you might need 3-phase power. Not every commercial building has this, so it’s vital to check early.

Who Pays for What? (The “TI” Talk)

In the world of commercial real estate, the build-out process is called a Tenant Improvement (TI). This is where you negotiate who is responsible for the costs.

Negotiating Your Lease:

  • The Electrical Allowance: Before you sign, try to negotiate a “TI allowance” where the landlord covers a portion of the electrical upgrades.
  • Landlord vs. Tenant: Generally, the landlord is responsible for bringing the power to the space, while you are responsible for the wiring inside the space. However, these lines can get blurry—make sure it’s clear in your lease.
  • Involve a Pro Early: Getting a licensed electrician to walk the space with you before you sign the lease gives you the data you need to negotiate a better deal.

Set Your Business Up for Success

Signing a lease is a huge milestone, and making sure the electrical system is ready to support your dream is a vital step. By checking the panel and knowing your power needs upfront, you can avoid expensive surprises and focus on what you do best—running your business.

At Electric Avenue LLC, we’re a family-owned team that loves helping business owners in the Portland metro area, including Clackamas, Multnomah, and Washington County. We specialize in helping you understand the “bones” of a commercial space so you can sign your lease with confidence.

Found a space and need a pro to check it out? If you want an honest assessment of a commercial panel or need a quote for your build-out, we’re here to help. Reach out to us for an estimate, and let’s make sure your new business has the power it needs to grow.