Colorado Commercial Lease Guide

Commercial Lease Guide for Colorado

A practical, tenant-focused guide to reviewing Colorado commercial leases — not legal advice.

Key Lease Considerations

Colorado leases often have “hidden” operational costs: snow/ice removal, hail damage exposure, and parking lot maintenance can create real budget surprises.

This guide focuses on how to allocate winter and weather-related responsibilities, how CAM is defined and audited, and how to avoid being stuck with major capital replacements.

Major markets

Where we see the most leasing activity.

Denver
Boulder
Colorado Springs
Fort Collins

Common lease types

Typical structures and what to watch.

Retail: NNN or modified gross (snow/ice and parking lot scope matters)
Office: full service or modified gross (expense stops and utilities)
Industrial: NNN (roof, yard, loading, and pavement language is key)

Cost drivers

Items that often create surprise bills.

Snow/ice removal and premises liability allocation
Hail/roof and exterior maintenance responsibilities
CAM definitions and management/administrative markups
Parking lot repairs, striping, and resurfacing
Utilities allocation and after-hours HVAC (office)

Negotiation checklist

Snow/ice scope and service level

Write down exactly what areas are covered (sidewalks, lots, loading, roof) and who pays. Avoid vague clauses that shift 100% of winter costs to the tenant without a CAM budget.

Hail/roof responsibility

Clarify who pays for roof repairs/replacement and how insurance proceeds are applied. If exterior work is passed through CAM, negotiate exclusions for capital replacements.

CAM: reconciliation + audit rights

Require a budget, annual reconciliation, audit rights, and exclusions for landlord overhead. Consider caps on management fees and year-over-year increases.

Parking lot and exterior

Confirm who maintains, repairs, and resurfaces the lot. Potholes and drainage issues can be expensive — negotiate clear responsibility and limits.

Repairs vs. replacements

Define “maintain” vs. “replace” for HVAC and major systems. Ask for a cap or amortization approach for capital replacements.

Default language + notice/cure

Add notice and cure periods and avoid harsh remedies like rent acceleration. Ensure you can survive a dispute or slow month without losing the lease.

Official resources

Colorado Secretary of State — business database Colorado Department of Revenue Colorado SBDC

Not legal advice. Always verify local requirements and consult qualified professionals for your situation.

Common Red Flags in Colorado

Commercial real estate in Colorado typically favors the landlord in standard lease drafts. Whether you are in Denver or elsewhere, you need to watch out for:

Uncapped NNN Charges: Variable costs like property taxes and insurance can skyrocket.
Broad Indemnification: Clauses that require you to pay for the landlord's negligence.
Relocation Clauses: Rights for the landlord to move your business to a worse location.

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Frequently Asked Questions

Are NNN leases common in Colorado?

Yes — especially in retail and industrial. The most important step is understanding CAM/NNN definitions and confirming snow/ice, roof/exterior, and parking lot costs are treated fairly.

What should Colorado tenants watch for in winter?

Snow/ice removal scope, slip-and-fall liability allocation, and whether winter services are properly budgeted and reconciled through CAM.

How do I avoid surprise “capital replacement” bills in Colorado?

Negotiate CAM exclusions for capital replacements and define repairs vs. replacements for major systems like roof and HVAC. If replacement is shared, require amortization over useful life.

Can I compare leases based on more than just rent?

Yes — compare total occupancy cost (rent + nets + utilities) and risk exposure (roof/HVAC/pavement and default clauses). A slightly higher rent can be cheaper if it reduces your risk.

Does BizLeaseCheck give legal advice?

No. It helps you spot common red flags and compare lease numbers quickly, but it’s not legal advice. Use it as a starting point before professional review.