What to Look for in a Commercial Lease Agreement
What to Look for in a Commercial Lease Agreement
Blog Article
A commercial lease agreement is more than just paperwork—it's a legally binding document that can have a lasting impact on your business operations and financial health. Whether you’re leasing office space, retail storefronts, or industrial properties, understanding the details of the lease is crucial before signing on the dotted line. At TX Sparks Property Management, we work with businesses to break down the key components of commercial leases and ensure you're entering an agreement that aligns with your goals and protects your interests.
One of the first things to look for is the type of lease being offered. Commercial leases can be gross, net, or modified gross—each defines who is responsible for expenses like property taxes, insurance, and maintenance. Pay close attention to rent escalation clauses, which outline how and when your rent might increase during the lease term. You’ll also want to review the length of the lease, renewal options, and any termination clauses that could affect your flexibility or lead to early exit penalties.
Other important elements include permitted use, which defines how the space can legally be used, and tenant improvement terms, which clarify who pays for build-outs or renovations. Maintenance responsibilities should be clearly outlined, including who handles HVAC systems, structural repairs, and landscaping. A good lease agreement should also specify liability insurance requirements and any restrictions on signage or alterations.
Understanding what’s in a commercial lease—and what’s not—is essential for protecting your business from unexpected costs or limitations. Before committing, have the lease reviewed by professionals who understand commercial real estate law. At TX Sparks Property Management, we provide expert advice and support to ensure your lease agreement serves your best interests and sets your busi
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