A commercial lease is a long commitment, and the terms that shape your costs and flexibility are rarely the ones printed in bold. Before you sign, these provisions deserve a careful second read.
Seven clauses to slow down on
- Rent escalation. Understand how and when rent increases — fixed steps, an index, or a market reset each renewal.
- Operating expenses and CAM. Know what you are sharing, whether there is a cap, and how the landlord calculates your portion.
- Assignment and subletting. If your needs change, can you transfer the space, and on what conditions?
- Maintenance and repair. Draw a clear line between your obligations and the landlord’s, especially for building systems.
- Renewal options. Confirm the notice window and how renewal rent is set before you rely on staying.
- Personal guaranty. A guaranty can outlast the lease term. Look for a cap or a burn-off after a period of good standing.
- Default and cure. Check how much notice you get and how long you have to fix a problem before consequences follow.
Most of these are negotiable, and small changes early are far cheaper than disputes later. If a clause is unclear, that is usually the signal to ask about it, not to move past it.