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Recognize these red flags before signing a commercial lease

On Behalf of | Dec 2, 2021 | Real Estate |

Once you find a commercial property you want to rent in New York and strike a deal with the property owner, the next step involves signing a commercial lease agreement. Make sure to review the lease thoroughly before signing your name, because commercial leases often have long durations, leaving you with limited options once you sign.

For this reason, CBI Commercial recommends that you develop an understanding of certain things you may find in the lease that may prove problematic later on. More specifically, when reviewing a commercial lease, make sure to watch for the following red flags.


Be wary of signing a lease that leaves anything at all open to interpretation. Unclear language in a commercial lease raises the chances of some type of lease dispute arising. A solid lease clearly outlines the responsibilities and obligations of both sides while leaving nothing uncertain.

Tax escalation provisions

A tax escalation provision, or a provision dictating that you are responsible for your part of tax increases, is not uncommon on a commercial lease. However, you should review the provision carefully to make sure it is fair and that the landlord is not taking advantage of you in any way.

Lengthy renewal clauses

A commercial lease may last longer than a standard residential one. However, you should give careful consideration to signing a lease that lasts longer than two years or makes you renew for longer than two years.

Commercial leases often include complex language and complicated provisions. It may serve you well to have a second set of eyes look over yours before you sign on the bottom line.