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Washington Commercial Lease Guide

Commercial Lease Guide for Washington

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

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Key Lease Considerations

Washington leases span everything from dense urban retail to industrial parks and warehouse corridors. Your risk often lives in operating expenses: utilities, CAM scope, and capital replacement language.

This guide focuses on making “pass-through” costs measurable and on addressing common regional risks like seismic exposure and water intrusion in older or poorly maintained buildings.

Major markets
Where we see the most leasing activity.
  • Seattle
  • Bellevue/Redmond
  • Tacoma
  • Spokane
  • Vancouver (WA)
Common lease types
Typical structures and what to watch.
  • Office: full service or modified gross (expense stops and exclusions)
  • Retail: NNN (CAM and common-area rules/signage)
  • Industrial: NNN (yard/loading, paving, and roof responsibility)
Cost drivers
Items that often create surprise bills.
  • Utility allocation (submetering vs. formulas; after-hours HVAC)
  • CAM scope, admin fees, and capital replacement pass-throughs
  • Seismic/earthquake insurance requirements and retrofit-related costs
  • Water intrusion/mold remediation language and building envelope maintenance
  • Leasehold excise tax considerations when leasing certain public properties

Negotiation checklist

Demand a clean CAM definition
Require an itemized CAM budget, annual reconciliation, and audit rights. Exclude capital replacements (or require amortization) and cap admin/management fees.
Make utilities measurable
If utilities aren’t separately metered, push for submeters or a transparent allocation method. Put after-hours HVAC pricing and scheduling in writing.
Seismic and casualty reality check
Confirm whether earthquake coverage is required and who pays deductibles. Clarify rent abatement and termination rights if the space can’t be used after a casualty.
Water intrusion and maintenance boundaries
Clarify who is responsible for roof/building envelope maintenance and remediation. Avoid broad clauses that make you responsible for building-wide water issues.
Repairs vs. replacement clarity
Spell out who pays for replacement of roof/HVAC/pavement. If tenant maintenance is required, negotiate caps and exclude major capital replacements.
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 assignment/sublease rights with clear consent standards so you can sell the business or relocate without being trapped by the lease.

Official resources

Washington Secretary of State — corporation searchWashington Department of RevenueWashington Business Hub

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

Common Red Flags in Washington

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

Yes — especially for retail and industrial spaces. Office leases are often full service or modified gross. Regardless of structure, insist on a clear CAM definition and reconciliation/audit rights.

What’s the biggest Washington tenant risk besides rent?

Unpredictable operating costs: utilities, CAM scope, and capital replacements. Make these measurable and capped where possible, and confirm who pays for major repairs.

Should I worry about earthquake language in my lease?

It’s worth reviewing. Some leases require earthquake coverage or shift large deductibles to tenants. Clarify insurance obligations, casualty repairs, and rent abatement if the space can’t be used.

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.