Before You Sign
Letters of intent, business terms, due diligence, the parties and premises, property condition, and timing.
Leasing guide
Understand the lease behind your business.
Plain-English educational information about commercial leasing for landlords, tenants, and business owners.
Leasing 101
Explore the commercial lease lifecycle.
Rent & Expenses
Base rent, escalations, operating expenses, taxes, insurance, utilities, reconcilitations, and audit rights.
Construction & Delivery
Delivery condition, landlord and tenant work, improvement allowances, approvals, construction deadlines, and rent commencement.
Use & Operations
Permitted use, exclusive-use rights, access, parking, signage, operating hours, and legal compliance.
Repairs & Risk
Maintenance and repair, capital expenditures, casualty and condemnation, insurance, indemnities, and environmental matters.
Flexibility & Exit
Assignment and subleasing, renewal and expansion rights, early termination, defaults and remedies, surrender, holdover, and guaranties.
Featured primer
Five questions to answer before negotiating.
- What must the premises allow you to do?Confirm that the permitted use, zoning, access, parking, signage, utilities, and physical condition meet your business’s needs.
- What will occupancy actually cost?Look beyond base rent to taxes, insurance, utilities, maintenance charges, operating expenses, and other possible costs.
- Who will prepare the space for your business?Decide what work the landlord and tenant will perform, who will pay for it, when it must be completed, and when rent will begin.
- How much flexibility will you need?Consider whether you may need to transfer the lease, expand, renew, purchase the property, or end the lease early.
- What happens when something goes wrong?Understand who handles repairs, what happens if the property is damaged, when a lease violation can be corrected, and remedies.
For tenants
Protect the place where your business operates.
A tenant should evaluate more than rent and term. The lease must support the intended use, construction schedule, access, signage, parking, utilities, staffing, customers, and future plans.
- Confirm the premises support the intended use.
- Define delivery, work, improvement allowances, deadlines, and rent commencement.
- Understand every component of occupancy cost.
- Preserve appropriate transfer, renewal, and exit flexibility.
- Limit personal exposure and align remedies with realistic risks.
For landlords
Protect the property and income stream.
A landlord’s lease should establish clear economics, preserve control, allocate responsibilities, address credit, and provide workable remedies.
- Define use, operating requirements, access, signage, and rules.
- Allocate maintenance, repair, compliance, insurance, and indemnity.
- Establish transparent expense recovery and reconciliation.
- Control transfers, alterations, and surrender.
- Address security, guaranties, defaults, cure rights, and remedies.
This guide provides general information and is not legal advice. Leases and applicable laws vary. Reviewing this material does not create an attorney-client relationship. Consult qualified counsel regarding a specific transaction.