Texas Commercial Lease Guide

Commercial Lease Guide for Texas

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

Key Lease Considerations

Texas leases frequently allocate most building costs to the tenant through NNN/CAM, and the “real rent” can be driven by taxes, insurance (hail/wind), and repair obligations.

This guide focuses on budget protection and control: defining pass-throughs, limiting lockout/lien exposure, and making sure you can open on time without paying rent on an unusable space.

Major markets

Where we see the most leasing activity.

Houston
Dallas–Fort Worth
Austin
San Antonio
Plano

Common lease types

Typical structures and what to watch.

Retail: NNN (taxes/insurance/CAM can be significant)
Industrial: NNN (roof, yard, and pavement responsibility must be clear)
Office: modified gross or full service (watch expense stop/escalations and exclusions)

Cost drivers

Items that often create surprise bills.

Property taxes and reassessments (how increases are passed through)
Wind/hail/flood insurance requirements and large deductibles
CAM definitions, admin/management fees, and capital pass-throughs
Roof/HVAC/pavement replacement exposure in NNN language
Lockout and landlord lien provisions embedded in “remedies” sections

Negotiation checklist

Treat property tax like a line item

Ask for a tax estimate, confirm how taxes are allocated, and negotiate protections (base-year/expense stop, caps, and clear rules for assessments).

Define and cap CAM (and exclude capital)

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

Limit lockout/lien exposure

Review “remedies” and “security” language carefully. Negotiate reasonable notice + cure, avoid aggressive lockout language, and limit/waive any landlord lien on your equipment and inventory where possible.

Repairs vs. replacement clarity

Spell out who pays for replacement of roof/HVAC/pavement and major structural items. If tenant maintenance is required, negotiate caps and exclude major capital replacements.

Insurance and deductible reality check

Confirm required coverages and endorsements. If the property has storm exposure, negotiate who pays large deductibles and how casualty repairs affect rent.

Rent start tied to opening readiness

Tie rent commencement to delivery of a usable premises and completion of required landlord work/approvals. Avoid paying full rent during construction or permitting delays.

Exit flexibility and assignment standards

Negotiate reasonable assignment/sublease rights with clear consent standards so you can sell the business or restructure without being trapped by the lease.

Official resources

Texas Secretary of State — SOSDirect (business filings info)Texas Comptroller of Public Accounts Texas SBDC Network

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

Common Red Flags in Texas

Commercial real estate in Texas typically favors the landlord in standard lease drafts. Whether you are in Austin 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 (Triple Net) leases common in Texas?

Yes — especially for retail and industrial properties. Because taxes and insurance can be large drivers in Texas, insist on a clear CAM/NNN definition, budgeting, and reconciliation/audit rights.

Why do Texas commercial leases feel “more expensive” than the base rent?

Many Texas deals shift taxes, insurance, and maintenance to tenants. When you compare locations, compare total occupancy cost (rent + CAM/NNN + utilities + insurance) and your exposure to major repairs.

What should I look for in lockout or landlord lien language?

Check the “remedies,” “security,” and “default” sections. Look for lockout triggers, cure periods, and any language granting the landlord a lien on your equipment or inventory. Negotiate notice + cure and narrower security terms.

How do I reduce the risk of surprise repair bills?

Define repairs vs. replacement in writing and negotiate caps or amortization for capital items (roof, HVAC, parking lot). Don’t accept vague “tenant maintains” clauses without limits.

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.