Ten questions to ask before you sign a commercial lease
Escalations, build-out allowances, exclusivity clauses — the details that decide whether a lease works for your business.
A commercial lease is a long-term operating cost, not a formality. The clauses that matter most are usually the ones that are easiest to skim past on a first read.
The clauses that cost the most money
Off-market inventory behaves differently from the public market. Because these properties are never advertised on the MLS or the major portals, pricing is negotiated between a much smaller group of motivated parties, and the timeline is usually driven by the seller rather than by the market.
- Fewer competing offers on the same property
- More flexibility on closing dates and contingencies
- Direct access to the listing agent instead of a call center
You negotiate a commercial lease once and live with it for ten years. Read every escalation clause twice.
LavaZoo Market Desk
Negotiating the build-out
Before you commit, compare the asking price with recent closed sales in the same building or on the same block, check the taxes and common charges, and ask how long the property has been quietly shopped. A listing that has been circulating privately for months is a very different negotiation from one that came to market last week.
- Get pre-approved so you can move quickly
- Ask the listing agent for the last three comparable sales
- Confirm what is included in the sale before signing
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