Trying to understand the lease terms of a commercial property can seem like navigating a minefield: there is a lot of new terminology and industry jargon to understand. When it comes to negotiating, some landlords may try to pass off a lease document as a “standard lease” that all tenants must sign. In many cases, uninformed tenants could end up agreeing to terms that are less than favorable, which is in fact not standard policy. Be careful with the following clauses:

• Anticipated termination – this clause often allows landlords to terminate the lease early and reasons for early termination may or may not be given. Resist including such clauses in your negotiations.
• Default – Be wary of onerous clauses that allow a landlord to evict a tenant if the rent has not been paid within a week of the due date. While it may seem standard, it is more common for leases to stipulate that tenants must be notified in writing at least 14 days before consequences are enacted. Negotiate required written notice in case of non-compliance.
• Redevelopment – try to avoid redevelopment clauses that allow the landlord to terminate the lease to redevelop or renovate the premises.
• Indemnity – be aware of the indemnity clauses that indemnify the landlord against claims for accidental loss or damage by the landlord. Be sure to review your insurance policy to see if an indemnity clause on your business property could violate your policy.
• transfer dates – The delivery date is the date on which the premises are delivered to the lessee to start the installation of equipment, before the date set for the start of the lease. Avoid leases that allow the landlord to change the delivery date without compensation, as you could end up incurring substantial costs if you are late or unprepared for retrofit construction.
• do good – a repair clause generally requires the lessee to leave the premises in good condition on departure. This generally includes the removal of any equipment the tenant installed during the term. If your premises come installed and equipped, negotiate to modify the “take back” clause to a general expectation of leaving the premises in good condition and repaired.

There are many other clauses and terms that can be negotiated: who is responsible for whose legal fees, as well as maintenance, repair and upkeep costs. Many businesses will find that they are much more successful negotiating lease terms to help reduce their costs rather than trying to get the landlord to lower the price. A tenant matching service can help with the “legal argument” of the lease: they will help you better understand what your options are.