Commercial Lease Review: What We Analyze and Why It Matters

A commercial lease is one of the most significant contracts your business will sign. Yet many tenants and landlords sign leases without fully understanding what they're agreeing to—often with costly consequences.

At Camelback Law Group, our lease review process is designed to identify risks, clarify obligations, and ensure you understand every provision before you commit.

Why Professional Lease Review Matters

Commercial leases are complex documents, typically 30-60 pages of dense legal language. Unlike residential leases, commercial leases have few consumer protections—the terms are almost entirely negotiable, which means the initial draft heavily favors whoever prepared it.

What We Analyze in Every Lease Review

Base Rent and Escalations

We verify that rent calculations are clear and examine escalation provisions—whether fixed increases, CPI adjustments, or market resets. We ensure you understand your total occupancy cost over the lease term.

Operating Expenses and CAM Charges

Operating expense provisions are where landlords often recover far more than tenants expect. We analyze:

• What expenses are included in the pass-through
• Whether capital expenditures are improperly included
• Administrative fee percentages
• Audit rights and reconciliation procedures
• Base year or expense stop structures

Use and Exclusivity Clauses

Your permitted use clause defines what you can do in the space. We ensure it's broad enough for your operations and any future pivots. For retail tenants, we negotiate exclusivity provisions to protect against direct competition within the property.

Maintenance and Repair Obligations

Who fixes what—and who pays—varies dramatically between leases. We clarify responsibilities for:

• HVAC systems and equipment
• Roof and structural elements
• Plumbing and electrical systems
• Common area maintenance
• ADA compliance upgrades

Assignment and Subletting Rights

Business circumstances change. We negotiate assignment and sublease provisions that give you flexibility while addressing legitimate landlord concerns about tenant quality.

Renewal and Expansion Options

Options are only valuable if properly structured. We review notice requirements, rent determination methods, and conditions that could cause you to lose your options.

Default and Remedies

We analyze what constitutes default, cure periods available, and remedies the landlord can pursue. We negotiate for reasonable notice and cure rights before lease termination.

Personal Guarantees

Many landlords require personal guarantees from business owners. We negotiate:

• Guarantee caps (limiting exposure to a set amount)
• Burn-off provisions (guarantee reduces over time)
• Good-guy clauses (guarantee ends if you vacate properly)
• Carve-outs for specific liabilities only

Our Lease Review Process

When to Get a Lease Reviewed

The best time for lease review is before you sign a letter of intent (LOI). Key business terms in the LOI often become locked in, so early review gives you maximum negotiating leverage.

At minimum, get professional review before signing the lease itself. Even if you've already agreed to terms, there are usually provisions in the full lease that weren't addressed in the LOI.