Pennsylvania Commercial Lease Guide

Commercial Lease Guide for Pennsylvania

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

Key Lease Considerations

Pennsylvania leases can include unusually aggressive remedies, including “confession of judgment” language in some drafts. That clause can dramatically increase tenant risk if a dispute occurs.

This guide helps you budget total occupancy cost, make CAM predictable, and negotiate survivable default and repair terms — especially when you’re investing in buildout.

Major markets

Where we see the most leasing activity.

Philadelphia
Pittsburgh
Allentown
Harrisburg
Erie

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/Warehouse: NNN (roof, loading areas, and pavement language matters)

Cost drivers

Items that often create surprise bills.

CAM definitions, management/admin fees, and capital pass-throughs
Property taxes and special assessments (documentation and allocation)
Repairs vs. replacement exposure for roof/HVAC/pavement
Default remedies (confession of judgment, fees, attorney costs, acceleration)
Tenant improvements and code-driven upgrades (who pays and when rent starts)

Negotiation checklist

Remove or narrow confession of judgment

If the lease includes confession of judgment language, treat it as a major risk item. Ask to remove it or narrowly limit it; also avoid waivers that reduce notice and dispute rights.

Define and audit CAM

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

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.

Default language you can survive

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

Buildout + rent start protection

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

Insurance requirements in writing

Confirm required coverages, limits, and endorsements. Avoid “any insurance landlord requires” language and make sure deductibles/uninsured losses aren’t unlimited pass-throughs.

Assignment/sublease flexibility

Negotiate reasonable consent standards so you can sell the business, bring in a partner, or relocate without being trapped by the lease.

Official resources

Pennsylvania Department of State — business services Pennsylvania Department of Revenue Pennsylvania SBDC

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

Common Red Flags in Pennsylvania

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

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

What is a confession of judgment clause?

It’s a clause some leases include that can allow a landlord to obtain a judgment without a normal trial process under certain conditions. Treat it as a high-risk provision and ask to remove or narrow it.

What should I compare besides rent in Pennsylvania?

Compare total occupancy cost (rent + CAM/NNN + utilities + insurance) and your exposure to major replacements (HVAC/roof/pavement) and harsh default remedies.

How do I avoid paying rent before I can open?

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

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.