Aspenhollow Business Capital, based in Olympia, WA, sets out what to check before leasing commercial space for a new or second location: whether the address is inside city limits, zoning and permit history, who pays for tenant improvements, and when to line up term loans and used equipment financing so the funding matches the lease.
Order matters
Partners funding a build-out read the lease closely: its length, who pays for improvements, and whether the business can operate there. Signing first and asking how to pay for the build-out afterwards can leave a gap the funding cannot fill. The steps below follow the order that keeps options open.
1. Confirm the jurisdiction
An Olympia, WA address is not always inside the city. The City of Olympia covers 22.2% of ZIP 98501's land and spreads across ZIPs 98501, 98502 and 98506 (U.S. Census Bureau, 2020 ZIP-place relationship file). A space with an Olympia mailing address may sit in Lacey, Tumwater or unincorporated Thurston County, WA, and which office's rules apply is a question for each of them. Confirm it with the city: olympiawa.gov is the official site (verified 2026-10-18).
2. Check zoning and permit history
To see whether a use is allowed at a location, look up the zoning map ('olympia wa zoning map'); to check past permits, use the permit search ('olympia wa building permit search'). A café in a space zoned for office use, or a space with open permits from a previous tenant, can delay an opening. The City of Olympia, WA license guide lists these checks and the official sources to confirm.
3. Agree who pays for improvements
Tenant improvements (walls, plumbing, electrical, finishes) can be split between landlord and tenant. A landlord may offer an improvement allowance, a rent concession while you build, or neither. Get the split in writing. Tenant improvement financing for the tenant's share is a project cost that can be matched to a term loan repaid over a period no longer than the lease.
4. Match the loan term to the lease term
A partner funding improvements to leased space looks at how long you have the space. Improvements stay with the building; if the lease is shorter than the repayment, you could be paying for a space you no longer use. Lease options to renew help. So does keeping movable equipment on a separate agreement, because equipment leaves with you.
5. Separate equipment from the build-out
Ovens, chairs, lifts and machines can move to a new space; walls cannot. Equipment financing keeps movable items on their own agreement. Used equipment financing companies differ on how old an item they will fund, so get quotes with make, model and year. A build-out funded by a term loan and equipment funded separately gives a partner two clear documents to review instead of one combined request.
Questions for the landlord
- Will the landlord contribute to improvements, and on what date does that money arrive?
- Who handles permits for the build-out?
- Can the lease be extended, and on what terms?
- Will the landlord sign any document a funding partner may request?
What the local numbers say about space
Real Estate and Rental and Leasing counted 93 employer establishments in ZIP 98501 in 2023, 79.6% with fewer than five employees (ZIP Code Business Patterns 2023); across Thurston County, WA there were 144 lessors of real estate with employees (County Business Patterns 2023) and 809 with none in 2024 (Nonemployer Statistics 2024). Of the 144 lessors with employees, 86.1% had fewer than five employees (County Business Patterns 2023). Ask each landlord directly what they will contribute to improvements.
A lease-stage checklist
- Jurisdiction confirmed with the city
- Zoning allows the use
- Permit history checked
- Improvement split and allowance in writing
- Lease length and renewal options cover the repayment period
- Equipment quoted separately from the build-out
County context is on the Olympia, WA page, and other articles cover practice and café build-outs.
By Aspenhollow Business Capital · Updated