Base rent is only one part of a commercial lease. A meaningful comparison considers operating expenses, common-area charges, property taxes, insurance, utilities, janitorial service, parking, signage, security, maintenance, repairs, capital replacements, management fees, and the treatment of increases. Free rent and tenant-improvement allowances should be evaluated alongside term length and construction obligations.
The business terms should also address permitted use, exclusivity, assignment and subletting, options, expansion or contraction rights, personal guarantees, security deposits, delivery condition, code compliance, accessibility, hazardous materials, restoration, casualty, condemnation, relocation, and default remedies.
Before signing, the tenant should confirm that the site supports the intended use, occupancy, parking, licensing, and operational needs. Owners should understand the tenant’s financial capacity, improvement plan, and impact on the property. Legal counsel should review the lease language; brokerage advice should focus on market terms, alternatives, economics, and negotiation strategy.
