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What do you know about pitfalls in commercial leases?

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As a first-time business owner in Florida, you hope for favorable outcomes in securing a commercial space for your business. Because this is your first time leasing space, you may not know what to look out for in the contract.

Forbes breaks down common pitfalls involved in commercial real estate leases. Know what to look for to find the ideal site for your business venture.

Tenant improvements

If you think that you may one day buy commercial property rather than keep leasing, look over the contract for guaranteed tenant improvements owed later on. You do not want your business space to later become a liability or debt when you hoped it would be an asset.


Besides standard fees, look over the agreement for concealed fees. Ask for a thorough breakdown of all fees, such as management, percentage rent and insurance coverage. Ask about anything that you do not understand, and consider having a professional look over the contract to ensure that it is fair for all parties involved.

Long-term goals

Where do you see your business in five years? If you foresee eventual business expansion, leave room for growth when choosing a commercial site. What feels perfect now could feel cramped in the years ahead when you bring on new employees or start using more business equipment.

Repairs and maintenance

Does the space you want to lease have a warranty or a limit on your out-of-pocket spending for maintenance and repairs? If not, a single appliance replacement or repair could cost you a considerable sum.

Do not let a bad commercial lease ruin your business’s potential. Know the signs of a favorable lease that brings peace of mind rather than stress.