Oregon Commercial Lease Guide

Commercial Lease Guide for Oregon

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

Key Lease Considerations

Oregon is known for no general sales tax, but occupancy cost can still rise through property taxes, local fees, and “assessments” that some leases treat as taxes or operating expenses.

In parts of Oregon (especially older urban buildings), seismic and capital upgrade projects can be a major risk. This guide helps you budget total occupancy cost and keep structural/capital responsibilities where they belong.

Major markets

Where we see the most leasing activity.

Portland
Eugene
Salem
Bend
Hillsboro

Common lease types

Typical structures and what to watch.

Retail: NNN or modified gross (CAM definitions and center rules)
Office: full service or modified gross (expense escalations and utilities)
Industrial/Flex: NNN (roof, yard/loading, and pavement language matters)

Cost drivers

Items that often create surprise bills.

CAM definitions, admin fees, and capital replacement pass-throughs
Local fees/assessments billed like “taxes” (define what’s included)
Seismic retrofit projects and structural upgrades
Roof/HVAC/pavement replacement exposure
Utilities allocation and shared system charges

Negotiation checklist

Define and audit CAM

Require an itemized CAM budget, annual reconciliation, and audit rights. Exclude capital replacements (or require amortization) and cap management/admin fees.

Define “taxes” and assessments

Make sure “taxes” is clearly defined and documented. Require invoices and limit pass-throughs for special assessments or fees that don’t benefit your premises.

Keep seismic/structural upgrades with the landlord

Avoid lease language that bills seismic or structural retrofits through CAM. If upgrades occur, negotiate landlord responsibility or a narrow, amortized allocation.

Repairs vs. replacement clarity

Spell out who pays for replacement of major systems (roof/HVAC/pavement). If tenant maintenance is required, negotiate caps or amortization for capital items.

Rent start tied to opening readiness

Tie rent commencement to delivery of a usable premises and required approvals (buildout completion, permits/CO if applicable, and landlord work).

Default language you can survive

Add written notice + cure periods, cap late fees/interest, and avoid acceleration language and unlimited attorney-fee shifting.

Assignment/sublease flexibility

Negotiate reasonable consent standards and avoid “recapture” traps so you can sell the business or relocate without being blocked.

Official resources

Oregon Secretary of State — business registry help Oregon Department of Revenue Oregon SBDC

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

Common Red Flags in Oregon

Commercial real estate in Oregon typically favors the landlord in standard lease drafts. Whether you are in Salem 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 Oregon?

Yes — especially for retail and industrial properties. The key is making sure CAM is defined, budgeted, and reconciled with audit rights.

Does “no sales tax” mean my occupancy cost is lower?

Not automatically. Even without a general sales tax, leases can pass through property taxes, local fees, and assessments. Compare spaces on total occupancy cost, not just base rent.

What is the seismic retrofit risk in an Oregon lease?

Some leases try to bill seismic or structural upgrades through CAM or maintenance obligations. Keep structural/capital work with the landlord or use a clearly defined, amortized approach.

How do I compare two Oregon lease options quickly?

Compare total occupancy cost (rent + CAM/NNN + utilities + insurance) and then compare replacement and retrofit exposure (HVAC/roof/pavement/seismic) plus default terms.

Does BizLeaseCheck provide legal advice?

No. It helps you spot common risks and compare leases quickly, but it’s not legal advice. Use it alongside qualified professional review for your situation.