A commercial lease review checklist is a list of the 12 clauses that decide what a lease really costs and how hard it is to exit. They cover money, control and risk. Check each one before you sign, then have a real estate attorney review the full document. This list gets you to that meeting prepared.
Money: what you'll actually pay
1. Premises and measurement
Find the rentable square footage and the usable square footage. The gap between them is the load factor, your share of lobbies, corridors and shared space. Ask how the space was measured and whether the landlord can remeasure later and raise your rent. Also look for a relocation clause that lets the landlord move you. If there is one, ask for it to be deleted or for the landlord to pay every moving cost.
2. Rent commencement
The lease may start on one date and rent on another. Make sure rent starts after the space is delivered in the condition promised, plus your build-out period. A delay in delivery should push your rent start back day for day.
3. Escalations
Note the type and the exact numbers. A CPI clause without a cap is a different deal from a 3% fixed bump. Our breakdown of rent escalation clauses shows the five-year math.
4. Operating expenses and CAM
Read the definition of operating expenses line by line. Look for exclusions, a cap on controllable costs, how your share is calculated and your audit right. See how to audit CAM charges for what to ask for.
Control: what you can do with the space
5. Use clause and exclusives
A narrow use clause ("sale of women's apparel") can block you from adding products or selling the business later. Ask for the broadest use the landlord will accept. If you need protection from a competitor moving in next door, ask for an exclusive use right, written specifically.
6. Assignment and subletting
This clause decides whether you can sell your business or shrink your footprint. Push for the landlord's consent to be "not unreasonably withheld," and for the right to assign without consent to a buyer of your business or an affiliate. Watch for recapture rights that let the landlord take the space back when you ask to sublet.
7. Renewal options
An option to renew is free to ask for at signing and expensive to get later. Check the notice window, the rent formula and whether the option is personal to you or transfers with an assignment.
Risk: what happens when things go wrong
8. Repairs and maintenance
Who replaces the HVAC unit when it dies in year four? In many NNN leases, the tenant does. Ask for the landlord to cover replacement of major systems, or for a warranty that they're in good working order at delivery.
9. Personal guaranty
Small businesses are often asked to guarantee the lease personally. Negotiate a cap, such as 12 months of rent, or a "good guy" guaranty that ends your liability if you give notice, pay rent through a set date and hand back the keys.
10. Default and cure periods
Check how many days you have to fix a missed payment or other breach before the landlord can act. Ten days for money and thirty for other breaches is a reasonable starting ask. Also look for written notice before any default is declared.
11. SNDA
A subordination, non-disturbance and attornment agreement protects your lease if the landlord's lender forecloses. Without the non-disturbance part, a new owner may be able to end your lease. Ask for an SNDA from the current lender as a condition of signing.
12. Compliance and ADA
Under the Americans with Disabilities Act Title III rules, both the landlord and the tenant of a public accommodation can be responsible for accessibility, and the lease can allocate who handles what. Make sure the lease says who pays to bring existing common areas and restrooms into compliance. That bill can be large, and it shouldn't default to you for problems that existed before you arrived.
How to use this checklist
Go through the lease with this list before your attorney does and mark every clause you don't understand or don't like. You'll spend less on legal time and walk into the conversation knowing your priorities.
Pick your fights. Most tenants can't win all 12. For a first location, our view is that the personal guaranty, the assignment clause and the CAM terms matter most, because they decide how much you can lose if the business struggles. The other clauses rarely sink a business on their own.
Start the review before the lease exists
Many of these terms are set in the letter of intent, weeks before a draft lease arrives. Raise the important ones early, and get the TI allowance terms down in writing too. Our tenant improvement allowance guide covers that part.
On Waltre, tenants post one requirement and verified landlords and brokers bring matching space, including off-market options. More offers on the table means more room to ask for the clauses above.
Read every clause. Then sign.
Frequently Asked Questions
What should I look for in a commercial lease?
Start with the clauses that decide cost and risk: rent commencement, escalations, operating expenses, repairs, assignment and subletting, personal guaranty and renewal options. Then have a real estate attorney review the full lease.
Should I have a lawyer review my commercial lease?
Yes. A commercial lease is a long, binding contract with fewer consumer protections than a residential lease, and an attorney's review usually costs far less than one bad clause.
What is a good guy guaranty?
A good guy guaranty is a limited personal guaranty that ends your personal liability if you give proper notice, pay rent through an agreed date and return the space in good condition. It's common in some markets for office and retail leases.
What is an SNDA in a commercial lease?
An SNDA is a subordination, non-disturbance and attornment agreement between the tenant, landlord and lender. It keeps your lease in place if the lender forecloses, in exchange for your agreement to recognize the new owner.
Can I get out of a commercial lease early?
Only if the lease allows it or the landlord agrees. Your main tools are an early termination clause, the right to assign or sublet, and negotiating a buyout, which is why the assignment clause matters so much.
