What to know before signing a commercial lease

Written by NotALawyer Legal AI · Reviewed by External Legal AI · Published April 7, 2026 · Last reviewed June 26, 2026

A commercial lease is one of the biggest bills you'll commit to, and the law tilts hard toward the landlord. Commercial tenants get almost none of the automatic protections that renters get on an apartment, so every protection you want has to be written into the lease. Read it closely and negotiate before you sign. The work can save you tens of thousands of dollars.

Everything is negotiable, so negotiate

A commercial lease is a starting point, not a take-it-or-leave-it form. Rent, term length, renewal options, tenant improvements, and who pays for repairs are all on the table. Landlords expect tenants to push back. Sign as-is and you leave money behind.

Know which lease type you're signing

A 'gross lease' means one flat rent and the landlord covers operating costs. A 'net lease' (single, double, or triple net) means base rent plus some or all of the property taxes, insurance, and maintenance. Triple net can add 30-50% on top of base rent, so ask which costs land on you.

Hunt for hidden costs and escalation clauses

Common surprises: CAM (common area maintenance) charges, annual rent escalations (often 3-5% a year), personal guarantees that put your own assets on the line, and buildout costs the landlord won't cover. Pin down every cost in writing before you sign.

Build in a way out

Businesses change. Ask for an early termination clause (even one with a penalty), the right to sublet, or an assignment provision. These keep you from being trapped in a 5-year lease if the business doesn't make it to year two.

Get a lawyer's eyes on it first

A commercial lease review usually runs $500-$1,500 and can catch costly traps. Look hard at maintenance responsibilities, default and remedy terms, exclusivity clauses, and what happens when the lease ends.

Start a Chat Find a Business Attorney

More on this topic: the Small Business hub

Sources & primary references

NotALawyer.com provides general legal information, not legal advice.