Commercial Leasing 101: Key Terms to Negotiate

Commercial leases carry more negotiable terms than residential rentals, and understanding them can save significant money over a lease term.

The lock-in period commits you to a minimum tenancy — negotiate this down if your business plans are uncertain. Escalation clauses typically raise rent 5% annually or 10-15% every three years; make sure this is clearly capped in the agreement.

Common Area Maintenance (CAM) charges cover shared upkeep costs and can add 15-20% to your monthly outgo — always ask for an itemised breakdown before signing.