Commercial lease · free guide
Commercial lease red flags
Red flags are not always deal killers. They are items that need a price, a cap, or a rewrite before you sign.
If a landlord will not discuss any of these, that is its own signal.
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Before ClausePrep
The broker is friendly and fast. Rent looks fine. You feel behind, like everyone else already knows the game.
After ClausePrep
You can price total occupancy cost, name the traps (CAM, guarantee, HVAC), and negotiate without apologizing for asking.
High-cost red flags
- Unlimited personal guarantee with no burn-off path.
- CAM with no history and no controllable cost cap.
- Tenant pays major capital items (HVAC, roof) with no age disclosure.
- Assignment forbidden or consent fully discretionary with no standard.
- Holdover rent at 150%+ with no grace for good-faith holdover.
Economic red flags
Percentage rent on top of high base without clear definitions of gross sales.
Free rent that disappears if you open late for reasons outside your control.
Control red flags
Relocation clauses that let the landlord move you for token compensation.
Continuous operation clauses that force unprofitable hours.
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Questions
Are landlord-friendly forms always unfair?
They start landlord-friendly. Many terms move if you have alternatives and ask early.
What if I already signed a LOI?
LOIs are often non-binding on most terms, but they set expectations. Still review the full lease carefully.
Educational content only. ClausePrep is not a law firm and does not provide legal advice. For material decisions, consult a licensed professional in your jurisdiction.