Commercial Leases: A Comprehensive Guide to Negotiating and Drafting

48 questions on commercial leases, answered and cited by the UpLaw editorial team.

• Are rent acceleration clauses enforceable?
• Can a landlord unreasonably withhold consent to an assignment of a commercial lease?
• Does a commercial landlord have to mitigate damages when a tenant abandons?
• Does a commercial tenant get an implied warranty that the space is suitable for its business?
• Does a force majeure clause excuse a tenant from paying rent?
• Does “triple net” have a legal definition?
• How broadly should a use clause be drafted?
• How does a tenant avoid a six-figure restoration bill at the end of the lease?
• How does a tenant defend against an inflated load factor or pro rata share?
• How does percentage rent work, and what is a breakpoint?
• How do renewal options work, and what happens if the tenant's notice is late?
• How should “fair market rent” be defined in a renewal option?
• Is a commercial lease a conveyance or a contract?
• Should a tenant give a cash security deposit or a letter of credit?
• What are radius restrictions and continuous-operation covenants in a retail lease?
• What are recapture and profit-sharing clauses in a transfer provision?
• What are the common rent escalation structures, and how much do they cost?
• What are the three types of operating-expense caps, and which should a tenant want?
• What dates matter at the beginning of a lease term, and what should the tenant control?
• What does a landlord's standard personal guaranty actually obligate the guarantor to do?
• What happens to a commercial lease if the tenant files for bankruptcy?
• What is a co-tenancy clause, and how should it be drafted?
• What is a good-guy guaranty?
• What is a gross-up provision, and does it help the landlord or the tenant?
• What is a holdover clause, and how much does holding over cost?
• What is an estoppel certificate, and what are the risks of signing one?
• What is an SNDA, and why does non-disturbance matter?
• What is a waiver of subrogation, and why does a commercial tenant need one?
• What is the covenant of quiet enjoyment, and how does constructive eviction work?
• What is the difference between an assignment and a sublease, and does the original tenant stay liable?
• What is the difference between an expansion option, a right of first offer, and a right of first refusal?
• What is the difference between gross, modified gross, net, and triple-net leases?
• What is the difference between usable and rentable square feet, and what is a load factor?
• What makes an exclusive-use clause actually worth having?
• What operating expenses should be excluded from CAM?
• What remedies does a landlord have when a commercial tenant defaults, and can it change the locks?
• What remedies should a tenant negotiate for the landlord's defaults?
• What should a CAM audit right include?
• What should a casualty clause say if the building burns?
• What should a tenant negotiate about a tenant improvement allowance?
• What should a tenant negotiate in a condemnation clause?
• What should a tenant negotiate inside the lender's SNDA form?
• What should a tenant negotiate in the definition of default?
• What should be excluded from “Gross Sales” in a percentage-rent lease?
• What should go into a lease letter of intent?
• What transfers should a tenant be permitted to make without the landlord's consent?
• Who is responsible for compliance with law and the ADA under a commercial lease?
• Who pays to replace the HVAC in a triple-net lease?