Signing a commercial lease is a major commitment, and what looks like a great space can quickly turn into a costly headache if the lease terms aren’t in your favor. At Daniels Greer Commercial Real Estate, we help Tulsa-area business owners and tenants avoid costly mistakes by understanding what’s written in the fine print. Here are some common red flags to watch for before signing a commercial lease.
1. Vague Language Around Operating Expenses
If the lease includes terms like “additional rent” or “operating costs” without clear definitions, that’s a warning sign. These vague terms can lead to unpredictable expenses down the road. Make sure the lease outlines exactly what expenses you’re responsible for, like taxes, insurance, maintenance (often called CAM charges), and how they’re calculated.
2. Unclear Maintenance Responsibilities
Who is responsible for HVAC repairs? What about roof issues or plumbing? Some landlords shift all maintenance obligations onto the tenant, even for structural issues. That can result in surprise repair costs. A well-balanced lease clearly outlines responsibilities for both parties.
3. No Clause for Early Termination or Exit Strategy
Things change, your business might outgrow the space or need to pivot. If the lease doesn’t include an early termination clause or an option to sublease, you could be stuck. Always check for flexibility in the event of unexpected changes.
4. Automatic Renewal Without Notification
Some leases include automatic renewal clauses that trigger if you don’t cancel within a specific window, often 6 to 12 months before the lease ends. If you miss the deadline, you may be locked in for another full term. Always mark critical dates and negotiate fair renewal terms upfront.
5. Lack of Tenant Improvement Allowances
If the space needs modifications to meet your business needs and the lease offers no tenant improvement allowance (TIA), you could be paying out of pocket for everything. This is especially important for medical, retail, and professional office users with specific build-out needs.
At Daniels Greer Commercial Real Estate, we review lease terms with our clients to ensure they’re fair, transparent, and aligned with long-term business goals. If you’re considering commercial property in Tulsa, call (918) 527-3674 and let our experienced team help you lease with confidence.