Rent and Payment Terms

The lease should clearly state the rent amount, payment schedule, and method of payment. Be sure to check if there are any rent review clauses, allowing the landlord to increase the rent periodically, and understand when and how these reviews occur.

Lease Term and Renewal Options

Check the length of the lease, often referred to as the lease term. Commercial leases typically run for longer periods (e.g., 5-10 years), but it's crucial to see if there's a break clause or renewal option that provides flexibility. These options can allow you to end or renew the lease under agreed terms.

Repair and Maintenance Responsibilities

Commercial leases often include repair obligations under terms like "full repairing and insuring" (FRI) leases, which means tenants are responsible for all repairs and maintenance. Ensure you're clear on what is expected, as the costs can be significant, especially for older buildings.

Service Charges

If the property is part of a larger building, you may need to pay service charges for shared facilities (like security, cleaning, and maintenance of common areas). Make sure the lease outlines these charges, what they cover, and how they’re calculated.

Alterations and Improvements

If you plan to make any alterations or improvements to the property (e.g., installing partitions or new fixtures), check if the lease permits this. Most landlords require written approval for any structural changes. Be clear on whether you’ll be required to restore the property to its original condition when the lease ends.

Subletting and Assignment

If you want the option to sublet the property or assign the lease to another business, check if the lease allows it. Subletting or assigning your lease can give you flexibility if you need to downsize or relocate, but many landlords impose strict conditions or require consent.

Insurance

Commercial tenants are often required to take out insurance for the property, particularly if it’s an FRI lease. Check what insurance you’re responsible for (such as building, contents, or liability insurance) and whether the landlord also holds any policies. Understand how the premiums are handled and who pays for what.