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5 things to look for in a commercial lease

On Behalf of | Oct 27, 2023 | Real Estate Disputes

Finding an ideal space to conduct business can be challenging. You may have viewed several properties before finding one that ticks all your boxes. That’s why signing a commercial lease is a big deal for business owners. You should pay attention to the agreement you enter into, not simply sign on the dotted line without reviewing the terms of the contract. As excited as you may be to get started, failure to take certain precautious now could cost you in the long run.

As you are reviewing the terms of your new commercial lease, keep a close eye out for the following.

Lease term

The lease term in the agreement should be similar to what you agreed to with the landlord. In addition, check the lease type – will you be required to pay associated fees for maintaining the property, or will the landlord cover the operating expenses?


The rent amount included in the lease should be similar to what the landlord informed you. Further, check the terms associated with the rent amount. When should you pay rent? What happens when you delay? Can the landlord change it without notification? Can you negotiate or contest a rent increase?

Security deposit

You should know how much security deposit you need to pay. Additionally confirm what can and cannot be covered by the security deposit and how long it will take the landlord to return it after your lease ends.


The lease agreement you sign should clearly outline if you can sublease part or all of your space to another business. Understanding your rights to sublease the property can save you from hefty penalties.

Permitted use

Your landlord-to-be may only permit your current business in the premises. Therefore, if you wish to change your operations later, you will need to talk to them to better understand your options. Having this chat proactively can help you make informed decisions.

Finally, as you’re reviewing the terms of your lease, you may want to consider seeking legal guidance to confirm whether the lease agreement terms in question are reasonable, favorable and enforceable. When it comes to contracts, knowledge truly is power.