12 Questions You Need to Ask When Leasing A Commercial Property

Leasing a commercial space can be a huge step for your business. Many business owners jump into rental agreements too fast, missing out on important lease details. But it’s important to ask the right questions first before signing. These questions will guide you through lease terms, landlord responsibilities, and potential red flags.

1. What Type of Lease Am I Signing?

The type of lease you sign shapes everything from your budget to your daily operations. Not all commercial leases play by the same rules. Some, like gross leases, keep things simple with the landlord covering most property expenses. Others, like net leases, hand you the bill for taxes, insurance, or upkeep. With double or triple net leases, the responsibility piles on, and you’re expected to shoulder nearly all property-related costs. Knowing the difference can help you avoid surprises later.

Clarify this early. If the lease isn’t clear, ask the landlord to break down what’s covered and what isn’t.

2. What Are the Total Monthly and Annual Costs?

Your monthly rent is just the tip of the iceberg. Beyond the base amount, extra costs can quietly add up. Think utilities, insurance, and those often-overlooked Common Area Maintenance (CAM) fees. These can make a cheap space feel expensive fast. Ask how CAM fees are broken down and what they cover, like cleaning, landscaping, or security. In multi-tenant buildings, dig deeper into how those charges are split. You don’t want to end up paying more than your fair share.

3. How Long Is the Lease Term, and What Happens When It Ends?

Leases can range from one to ten years. Some landlords offer flexibility, while others prefer long-term tenants. Ask if there’s a renewal option and whether rent will increase during or after the term.

Understanding the renewal process will help you plan your next steps and avoid last-minute pressure.

4. Can I Make Changes to the Property?

Most commercial spaces won’t be move-in ready for your exact needs. You’ll likely want to renovate, repaint, or restructure something. Before signing anything, ask what changes are allowed and what’s off-limits. Clarify who covers the cost; some landlords offer allowances, while others expect you to foot the bill. Always confirm if you need written approval before making any updates. Avoid surprises that could delay your opening or cost you extra.

If you’re responsible for the costs, consider negotiating rent credits or allowances to ease the financial burden.

5. Who Handles Repairs and Maintenance?

Some leases make the landlord responsible for property upkeep. Others shift that to you. Get clarity on both minor and major repairs.

Also, ask about regular maintenance services like landscaping or HVAC servicing. Knowing who handles what will help you avoid surprise bills.

6. Is the Space Compliant with Local Zoning Laws?

Not every commercial space fits every business. Before signing anything, confirm the property is zoned for your business type.

Zoning laws differ by location. It’s important to double-check this with your local government or a real estate attorney to avoid legal issues.

7. Are There Any Hidden Restrictions?

Ask about limitations that could affect your operations. Some leases restrict signage, business hours, or the types of services you can offer.

Even restrictions on noise, customer traffic, or deliveries can become problems down the line. You don’t want surprises once you’ve moved in.

8. What’s the Exit Strategy If I Need to Leave Early?

Life happens. Businesses pivot, and plans change. Always ask what happens if you need to break the lease early.

Some landlords include early termination clauses. Others allow subleasing or lease assignments. Knowing your options can protect you financially if things go sideways.

9. Who Are My Neighbors?

Renting space for business involves more than just the building. The surrounding tenants matter too. Ask about current and upcoming tenants.

If you’re in retail, nearby stores can impact foot traffic. For offices, other tenants can influence the building’s atmosphere and even noise levels.

10. How Much Parking Is Available?

Customers, clients, and employees need somewhere to park. Ask about the number of spaces, whether they’re reserved, and if there’s a fee.

Lack of parking can hurt your business, especially if you rely on customer visits. Make sure the parking situation matches your needs.

11. Is There a History of Issues with the Property?

You have the right to know if the space has had past problems. Ask about flooding, pests, mold, or structural damage.

Also, check for past code violations or insurance claims. Knowing the property’s history can help you avoid costly surprises later on.

12. Will the Lease Terms Adjust with Market Conditions?

Ask if the lease has any clauses tied to inflation or market rent changes. Some agreements include escalations based on consumer price indices.

Understanding how rent might increase during your lease will help you budget more accurately and plan for the future.

Don’t Just Sign, Strategize

Leasing a commercial space isn’t about finding a place and moving in. It’s a negotiation that shapes how your business operates day to day. The questions you ask tell landlords you’re serious, informed, and ready to protect your interests.

Treat the process like a strategy session, not a formality. Each answer you get is a clue to whether that space will work for you or work against you. When the right questions meet the right lease, you get more than square footage. You get peace of mind and a stronger foundation for your business. Think ahead. Ask boldly. And never settle for unclear terms. A smart lease today can save your business tomorrow.