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Commercial Lease Agreement Tips for Negotiation

When signing any kind of lease, it’s important that both parties are aware of what terms are included. This is especially critical in commercial lease agreements, as the language of the contract gets more complex and the financial stakes are higher. If your business is signing a lease in Boulder, Colorado, be sure to read through these commercial lease agreement tips before hand.

Sublease Rights

If you want to sublease the commercial space to another tenant while you’re still on the lease, you’ll need to understand the rights you have when doing this. Check what fees are associated with subleasing – sometimes it’s a flat fee, and sometimes the fee is the cost of an attorney. There are likely stipulations that hold you liable for the difference in lease rate if the sublessor doesn’t lease for the entirety of your contract.

Maintenance Clause

Tenants are generally responsible for the maintenance costs that arise while leasing. However, larger, long-term system failures shouldn’t be your responsibility to replace. Ensure that maintenance liabilities are within reason in your contract.


Across the U.S, more and more offices and workplaces are offering pet-friendly offices and benefits. In Boulder, most properties do allow pets, but the leases won’t always say that. It’s worth opening a conversation with the landlord to add it to the lease, as most landlords will generally allow it.

Personal Guarantees

Generally, leases are in the company’s name. However, some landlords will request a person’s name be included in the contract as a personal guarantee. Depending on the circumstances of the lease and the economic incentives provided, this can be a negotiable stipulation that some landlords will agree to omitting, but all leases require some level of security. Addressing this early will save much time and hassle late in the lease negotiations.

Be Reasonable

Many commercial lessors use a “standard” or “template” lease for their deals, and typically the terms of these leases lean in the landlord’s favor. However, most landlords are generally flexible if changes are requested, and understand that a lease is a discussion, not an ultimatum. Of course, changes to the standard lease should be reasonable, otherwise the discussion could end for good.

Most important of all, real estate brokers are not attorneys. It is always recommend to have an attorney review a lease before it is signed. If you have any questions about a lease or need recommendations for a good attorney, give us a call! We are happy to help.