Commercial Leases,
negotiated and protected.
Commercial leases are complex, heavily landlord-favored documents that can bind your business for years. Our AI Legal Nerds help you understand every clause, identify dangerous provisions, and negotiate better terms before you sign.
Commercial Lease Types Explained
The type of lease dramatically affects your total occupancy cost. Understanding what you are signing is critical before committing your business to a multi-year obligation.
Triple Net Lease (NNN)
You pay base rent PLUS a proportionate share of property taxes, building insurance, and common area maintenance. Your monthly cost can vary significantly. Our AI calculates your estimated total occupancy cost under a NNN lease.
Gross Lease
You pay a single all-inclusive rent that covers most or all operating expenses. Easier to budget but typically higher base rent. Modified gross leases split certain expenses between landlord and tenant.
Percentage Lease
You pay base rent plus a percentage of your gross sales above a breakpoint. Good for businesses with variable revenue — but requires careful negotiation of the breakpoint and sales reporting requirements.
Full Service Lease
Landlord pays all operating expenses and you pay a single rent. Watch for expense stops and base year provisions that can shift costs to you as operating expenses increase over time.
Red Flag Lease Provisions
🚨 Personal guarantee
Makes you personally liable for lease obligations — meaning the landlord can come after your personal assets if the business cannot pay.
🚨 No assignment or subletting
Prevents you from assigning the lease or subletting the space if you need to exit — trapping you in the lease even if your business circumstances change dramatically.
🚨 Demolition clause
Allows the landlord to terminate your lease with limited notice to demolish or redevelop the building — potentially disrupting your business with very little warning.
🚨 Radius restriction
Prevents you from opening another location within a certain radius — severely limiting your expansion options for the entire lease term.
🚨 Unlimited CAM escalations
Common area maintenance charges with no cap can escalate unpredictably year over year — dramatically increasing your total occupancy cost.
🚨 Landlord relocation right
Gives the landlord the right to move your business to a different space in the building — potentially to a less desirable location with minimal notice.
What to Negotiate Before Signing
Free Rent Period
Negotiate rent-free months at the start of the lease for buildout and setup. 1-3 months is common in most markets.
Tenant Improvement Allowance
Get the landlord to contribute to your buildout costs. TI allowances are negotiable and can be significant in competitive markets.
Early Termination Right
Negotiate a right to terminate early with reasonable notice and a fee — protecting you if your business needs change significantly.
Capped Rent Increases
Negotiate annual rent increase caps — typically CPI or 3% per year — to make your occupancy cost predictable for the entire lease term.
Do not sign a commercial lease without a review
Commercial leases are long-term, high-value obligations. Get expert AI guidance on every clause before committing your business.