Commercial Lease Checklist: 25 Tenant‑Friendly Terms to Negotiate

Commercial leases are long because they allocate risk—often to the tenant. If you’re a small business, the goal isn’t to “win” every clause. It’s to avoid the handful of terms that create budget shock, block your exit, or turn normal hiccups into defaults.

This checklist is a tenant-focused way to review a lease before you sign. Use it as a roadmap for questions to ask and terms to negotiate. (Not legal advice.)

Costs and “all-in” occupancy

Lease type (Gross vs NNN vs modified gross)
Understand what you’re actually paying beyond base rent. Start here: /blog/nnn-vs-gross-lease.
CAM / operating expense definition and exclusions
Vague CAM definitions create surprise bills. Deeper guide: /blog/cam-audit-rights.
Caps on operating expense increases
If you can’t cap it, at least cap major categories or exclude capital items.
Who pays for roof/HVAC/structure (repair vs replacement)
One “replacement” clause can wipe out your budget: /blog/roof-hvac-replacement.
Insurance requirements and deductible risk
Watch for high deductibles pushed to the tenant: /blog/insurance-deductibles.
Security deposit / LOC terms
Define what it can be used for and how it’s returned: /blog/security-deposit-letter-of-credit.
Rent escalation mechanics (CPI, caps/floors, step-ups)
Model the schedule and avoid one-way ratchets: /blog/rent-escalations-cpi.

Buildout, opening, and delivery

Delivery condition (as-is vs landlord work)
Make “delivery” objective: utilities on, safe access, code compliance where applicable.
Rent commencement tied to opening-ready conditions
Avoid paying before you can open: /blog/rent-commencement-delivery.
Tenant improvements (TI) and work letter clarity
Who approves plans? How are change orders handled? Deeper guides: /blog/negotiating-ti-allowance and /blog/tenant-improvements-liens.
Permits/CO timing and delay remedies
If approvals are delayed, what happens to the schedule and rent?

Renewal and exit paths

Renewal option notice windows (calendar them)
Missing a notice deadline can be catastrophic: /blog/renewal-options-notice.
Fair market rent (FMV) definition and process
If rent resets to FMV, define appraisal mechanics and avoid landlord-controlled outcomes.
Assignment and sublease rights
Your business may need an exit ramp: /blog/assignment-sublease.
Landlord consent standards
Push for “consent not unreasonably withheld” and clear response timelines.
Recapture rights
Some leases let the landlord terminate if you request assignment/sublease. Know it before you sign.
Early termination options (if needed)
If your business model is uncertain, an early out (with a fee) can be cheaper than being trapped.
Holdover rent and end-of-term logistics
Avoid 200% penalties: /blog/holdover-rent.

Defaults, guarantees, and enforcement

Cure periods for monetary and non-monetary defaults
You want time to fix mistakes before default remedies trigger.
Acceleration clauses
Avoid language that makes you owe the entire lease balance for a short-term issue.
Personal guarantee scope and burn-off
Limited guarantees and burn-offs reduce personal risk: /blog/personal-guarantee-burnoff.
Attorneys’ fees and dispute process
Fee-shifting and venue clauses affect your leverage in a dispute.

“Big event” risk: ownership change, closures, center performance

SNDA / non-disturbance protection
Protect your lease if the landlord’s lender forecloses: /blog/snda-non-disturbance.
Estoppel certificate language (facts vs waivers)
Don’t sign away rights under time pressure: /blog/estoppel-certificates.
Force majeure / closure and operating covenant alignment
Make sure closures don’t trigger default: /blog/force-majeure-commercial-lease.

Bonus (retail):

Exclusive use and radius restrictions: /blog/exclusive-use-radius
Co‑tenancy (anchors/occupancy): /blog/co-tenancy-clauses

How BizLeaseCheck helps

BizLeaseCheck scans your lease for common risk terms and flags:

hidden cost exposure (NNN/CAM, repairs, insurance deductibles)
exit blockers (assignment/renewal notice, holdover penalties)
default traps (acceleration, short cure periods, guarantee scope)
transaction clauses (estoppel, subordination/SNDA)

Upload a lease for a fast first-pass review:

/analyze

Not legal advice

This article is for informational purposes only and is not legal advice. Commercial leasing terms vary by property type, jurisdiction, and market. Use this checklist to guide questions and negotiate key terms, and confirm specifics with qualified professionals.