Contract Checklist

Commercial Lease Agreement Review Guide

Commercial leases are long-term liabilities. A 'standard' lease can bankrupt a business with hidden Common Area Maintenance (CAM) charges.

Critical Red Flags

Lock-in Period: You are legally bound to pay rent for 12-36 months even if your business pivots or fails.

Hyper-Variable CAM Charges: Maintenance fees that can double based on 'actuals' with no transparency.

Relocation/Eminent Domain: Landlord can move your business to a 'comparable' (often worse) spot mid-lease.

Personal Guarantee (Director): Making the founder personally liable for corporate rent arrears.

Must-Have Clauses

Sub-Leasing / Sharing Right: Ability to rent out extra desks or space to another startup to offset costs.

Fit-out Period (Rent-Free): Typically 30-60 days of rent-free period to set up the office/retail interior.

Signage & Visibility: Guaranteed rights to place your brand logo on the building facade or directory.

Force Majeure (Rent Waiver): Explicit suspension of rent during pandemics, floods, or government lockdowns.

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