Leasing a commercial space, especially for a medical or professional office, is a major decision. At the same time, a property may seem like the perfect fit at first glance, but hidden lease pitfalls can cost you time, money, and flexibility down the road. At Daniels Greer Commercial Real Estate in Tulsa, we help tenants protect their investments by spotting red flags early. Here are some tricks to help you avoid costly surprises before you sign the dotted line.
1. Read Beyond the Rent Rate
Don’t let a low lease rate blind you. Look deeper into additional costs such as common area maintenance (CAM) fees, property taxes, utilities, and janitorial services. These often aren’t included in the base rent and can add up fast. Always ask for a full breakdown of what’s included and what isn’t.
2. Review the Repair & Maintenance Clause
Who’s responsible for HVAC repairs, roof maintenance, plumbing, or parking lot upkeep? Ambiguous language in the lease can cause tenants to have unexpected repair bills. Watch for “triple net” (NNN) leases where you might be responsible for more than you realize.
3. Understand the Lease Term and Renewal Options
Long-term leases may offer stability, but they can also trap you in an inflexible situation if your needs change. Make sure the lease includes clear renewal options, exit clauses, or subletting rights, especially if you’re in growth mode or a new location.
4. Check for Exclusivity Clauses
If you’re a specialized provider or retailer, ask whether you’ll have exclusive rights to your service type in the building or center. Without exclusivity, a direct competitor could move in next door.
5. Inspect the Fine Print on Build-Outs and Improvements
Make sure any tenant improvement (TI) allowance is clearly outlined, including who pays for what and what happens if costs exceed the allowance. Also, clarify ownership of permanent improvements. Do they stay with the building?
6. Watch for Vague “Use” Clauses
A loosely written use clause could restrict how your business operates or evolve. Ensure the lease clearly allows for your intended business activities, current and future.
Need help navigating your lease?
At Daniels Greer Commercial Real Estate, we help Tulsa-area tenants negotiate lease terms that work in their favor. Let us review your lease before you commit; your future self will thank you.