How to Negotiate a Commercial Lease Like a Pro

I’ve worked with and learned from enough business owners over the years to know this: rent can be one of your biggest business expenses—and one of your biggest traps if you don’t negotiate wisely.

Here’s what stands out the most:

Start with your business needs.
Before you even look at properties, be honest about what you need right now—and what you might need a few years from now. How much space? Do you want flexibility for short-term growth or are you ready for a long-term commitment?

Know your numbers.
Understand the costs involved and the types of leases available. There’s more to rent than just the base price.

• A gross rent lease means you’re paying a single monthly amount to the landlord—easy to budget for.
• A net lease adds on property taxes to that base rent.
• A double net lease adds property taxes and insurance.
• A triple net lease means you’re responsible for the base rent plus property taxes, insurance, and maintenance (CAM) expenses. Those can add up fast, so ask for details!

Check market rents.
Don’t assume the listed price is the going rate. Compare it to similar properties in the area. Knowledge is negotiating power.

Research the property.
Dig into the building’s history and upkeep. A good-looking lobby doesn’t mean the HVAC won’t go out next month.

Review the termination conditions.
What happens if you need to get out early? Are there penalties? You need to know the terms before you sign.

Negotiate leasehold improvements.
If you’re making updates to the space, get clarity on who pays for what. Sometimes landlords will reimburse or cover some of the costs, but only if it’s in writing.

Watch for competitor clauses or exclusive use terms.
These can protect your business—or hurt it if you don’t know they exist.

Look at renewal conditions.
Don’t get blindsided at the end of your term. Make sure the renewal terms are fair and predictable.

And most importantly—take your time.
Never sign a commercial lease without a lawyer who knows leases and will advocate for you. A good attorney can help you avoid costly surprises and set you up for long-term success.

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