When leasing a commercial property, it’s easy to focus on the base rent, but the total cost of occupancy often goes far beyond that number. Hidden costs can quickly turn a seemingly affordable space into a financial strain if you’re not prepared. At Daniels Greer Commercial Real Estate, we help Tulsa-area tenants make smarter leasing decisions by uncovering expenses others miss. Here’s how to budget for those hidden costs before they catch you off guard.
1. Understand Common Area Maintenance (CAM) Fees
In many leases, tenants are responsible for a share of expenses that keep shared spaces functioning. These CAM fees can include landscaping, parking lot maintenance, hallway lighting, snow removal, and security.
Tip: Request a detailed breakdown of CAM charges and ask for historical data from previous years. These costs fluctuate, so a clear picture of trends will help you forecast more accurately.
2. Know What “Triple Net” (NNN) Really Means
In a triple net lease, tenants typically pay for property taxes, insurance, and maintenance on top of base rent. These can be significant costs and may change annually.
Tip: Ask for current figures on taxes and insurance, and verify how increases will be passed along to you.
3. Budget for Utilities and Janitorial Services
Many commercial leases leave utilities and cleaning up to the tenant. Depending on the square footage and usage (especially in medical or food-related spaces), these expenses can be higher than expected.
Tip: Request utility averages from the landlord or the previous tenant. Also, clarify who handles trash removal and restroom cleaning.
4. Account for Build-Out and Customization Costs
Even if a landlord offers a tenant improvement (TI) allowance, it may not cover all the customization you need. Upgrades to HVAC systems, plumbing, lighting, or interior finishes may exceed your budget.
Tip: Get a contractor estimate before signing the lease and plan for overages. You may also need to cover permits, inspections, or compliance updates.
5. Plan for Legal and Professional Fees
Lease negotiations often require an attorney, an architect, or consultants. These upfront costs are easy to overlook but essential to protect your interests.
Ready to lease smart?
At Daniels Greer Commercial Real Estate, we help you spot hidden costs early so you can lease with confidence. Reach out today for expert commercial leasing guidance in Tulsa.