Checklist

Commercial Lease Review Checklist: 50+ Items for Tenants & Landlords

A comprehensive commercial lease review is essential before signing, during due diligence, and at renewal. Whether you are a tenant evaluating a new space or a landlord preparing to execute a lease, a structured review protects both parties from costly oversights. This checklist covers 50+ items organized by category, with perspective notes for both tenants and landlords.

Last updated: March 29, 2026 · Sources: Accruent, PredictAP, LoopNet

1. Party Information

  • ☐ Full legal name of landlord entity
  • ☐ Full legal name of tenant entity
  • ☐ Guarantor (personal or corporate guarantee?)
  • ☐ Notice addresses for all parties
  • ☐ Entity type and jurisdiction of formation

Tenant Tip

Verify the landlord entity actually owns the property. Check county recorder or assessor records. A mismatch between the signing entity and the property owner can create enforceability issues down the road.

Landlord Tip

Confirm the tenant entity is in good standing with its state of formation and is properly authorized to sign the lease. Request a certificate of good standing and corporate resolution if the tenant is an LLC or corporation.

2. Premises & Property

  • ☐ Property address
  • ☐ Suite/unit number
  • ☐ Rentable square footage
  • ☐ Usable square footage
  • ☐ Common area factor / load factor
  • ☐ Permitted use description

Tenant Tip

Rentable square footage includes a proportional share of common areas (lobbies, hallways, restrooms). It is typically 10–20% higher than usable square footage in office buildings. Always confirm which measurement standard is used (BOMA 2017 is most common) and whether the landlord's quoted square footage has been independently verified. The load factor directly affects your cost per usable square foot.

3. Lease Term

  • ☐ Commencement date (and conditions for delay)
  • ☐ Expiration date
  • ☐ Lease duration in months
  • ☐ Early access / fixturing period
  • ☐ Holdover provisions (rate, typically 150% of last month's rent)
  • ☐ Conditions precedent to commencement

Tenant Tip

Negotiate a fixturing period with free or reduced rent before the commencement date. Ensure the lease clearly defines what triggers commencement — especially if landlord build-out is involved. Delays in construction should not start your rent clock.

Landlord Tip

Holdover provisions protect against tenants remaining past their lease term. A rate of 150% of the last month's rent is standard, but some landlords set this at 200% to discourage holdover. Ensure the holdover clause specifies that the tenancy converts to month-to-month, not a new term.

4. Rent & Financial Terms

  • ☐ Base rent (monthly and annual, per SF)
  • ☐ Rent escalation schedule (fixed %, CPI, market reset)
  • ☐ Free rent / abatement periods
  • ☐ Percentage rent (breakpoint, rate, reporting requirements)
  • ☐ Security deposit (amount, conditions for return, letter of credit option)
  • ☐ Late payment penalties (grace period, interest rate)
  • ☐ First month's rent due date
  • ☐ Rent payment method and address
  • ☐ Pro-rata rent for partial months
  • ☐ Real estate tax escalation obligations

Tenant Tip

Pay close attention to the rent escalation structure. A 3% annual fixed escalation on a 10-year lease means your final year's rent will be roughly 30% higher than year one. CPI-based escalations can be more favorable in low-inflation environments but carry upside risk. Always model the total lease cost over the full term, not just the starting rent.

Landlord Tip

If offering free rent or abatement, structure it as a concession rather than a reduction in base rent. This preserves the stated rent rate for future escalation calculations and maintains property valuation based on contracted rent. Document letter of credit terms carefully, including draw conditions and renewal requirements.

5. Operating Expenses / CAM

  • ☐ Lease structure (NNN, gross, modified gross)
  • ☐ Base year or expense stop
  • ☐ Pro-rata share percentage (and how calculated)
  • ☐ CAM cap (annual increase cap, cumulative vs. compounding)
  • ☐ Excluded expenses (capital improvements, management fees above %, etc.)
  • ☐ Audit rights (tenant's right to audit landlord's books)
  • ☐ Reconciliation timeline (when annual reconciliation is due)
  • ☐ Estimated vs actual expense billing method

Tenant Tip

According to PredictAP research, 40% of CAM reconciliations contain material errors. Common issues include capital improvements improperly classified as operating expenses, management fees exceeding contractual caps, and double-counted invoices. Always exercise your audit rights. Negotiate a cumulative (non-compounding) CAM cap to limit exposure.

Landlord Tip

Maintain clean, auditable expense records from day one. CAM disputes are costly and damage tenant relationships. Be transparent about excluded vs. included expenses. If you use a CAM reconciliation process, deliver reconciliation statements on time — late delivery erodes tenant trust and may trigger penalty provisions in sophisticated leases.

6. Tenant Improvements

  • ☐ Tenant improvement allowance amount (per SF or lump sum)
  • ☐ TI disbursement process and timeline
  • ☐ Who controls construction (tenant or landlord build-out)
  • ☐ Plans and specifications approval process
  • ☐ Ownership of improvements at lease expiration

Tenant Tip

Understand whether the TI allowance is disbursed upfront, on a draw schedule, or as reimbursement after completion. Reimbursement-based TI can create cash flow pressure for tenants funding construction out of pocket. Negotiate a clear deadline for landlord approval of plans to avoid construction delays.

Landlord Tip

Specify whether improvements become landlord property at lease expiration or whether the tenant must restore the space to its original condition. Requiring restoration gives you flexibility for re-leasing but may reduce the TI amount a tenant is willing to invest.

7. Renewal & Termination

  • ☐ Number of renewal options
  • ☐ Renewal term length
  • ☐ Renewal rent basis (fair market, fixed, CPI)
  • ☐ Renewal notice period and deadline
  • ☐ Early termination option (fee, conditions, notice period)
  • ☐ Right of first refusal on adjacent space

Tenant Tip

Renewal deadlines are one of the most commonly missed dates in commercial leasing. Missing a renewal notice deadline can mean losing favorable renewal terms or the option entirely. Calendar the notice deadline with multiple reminders. If renewal rent is set at “fair market value,” negotiate a cap or a dispute resolution mechanism (such as broker determination) to prevent disagreements.

Landlord Tip

Early termination clauses should include a termination fee that covers unamortized TI, leasing commissions, and free rent. Without adequate protection, an early termination can leave you with unrecovered costs. Consider requiring 9–12 months advance notice for termination to allow time for re-leasing.

8. Assignment & Subletting

  • ☐ Assignment rights (landlord consent required? Can't be unreasonably withheld?)
  • ☐ Subletting rights and conditions
  • ☐ Profit sharing on sublease (50/50 split is common)
  • ☐ Recapture right (landlord right to take space back instead of allowing sublet)

Tenant Tip

Ensure the lease states that landlord consent to assignment or subletting “shall not be unreasonably withheld, conditioned, or delayed.” Without this language, the landlord has absolute discretion. Be cautious of recapture rights — if you request to sublet and the landlord recaptures the space, you lose the premises entirely.

Landlord Tip

A 50/50 profit sharing split on sublease income above the tenant's rent is standard market practice. Include a recapture right to maintain control over your tenant mix, especially in retail properties where tenant composition affects co-tenancy clauses and overall property positioning.

9. Maintenance & Repairs

  • ☐ Landlord maintenance obligations (structural, roof, HVAC, common areas)
  • ☐ Tenant maintenance obligations (interior, fixtures, trade equipment)
  • ☐ HVAC service contract requirements
  • ☐ After-hours HVAC charges
  • ☐ Restoration / surrender condition at lease end

Tenant Tip

In NNN leases, tenants often bear HVAC maintenance and replacement costs. Negotiate a cap on HVAC replacement obligations or require the landlord to maintain a replacement reserve. After-hours HVAC charges of $75–$150 per hour are common in office buildings and can add up significantly for tenants with non-standard operating hours.

Landlord Tip

Clearly define “surrender condition” in the lease. Ambiguous language leads to disputes at lease end. Requiring tenants to maintain an HVAC service contract protects your equipment investment and reduces the risk of expensive emergency repairs.

10. Insurance & Liability

  • ☐ Tenant insurance requirements (GL, property, workers comp, umbrella)
  • ☐ Minimum coverage amounts
  • ☐ Landlord named as additional insured
  • ☐ Waiver of subrogation

Tenant Tip

Review insurance requirements with your broker before signing. Some leases require coverage levels that are expensive or unusual for your industry. A mutual waiver of subrogation protects both parties — ensure it is reciprocal, not one-directional.

11. Default & Remedies

  • ☐ Monetary default notice period and cure period
  • ☐ Non-monetary default notice period and cure period
  • ☐ Landlord remedies (termination, acceleration, re-entry)
  • ☐ Tenant remedies (rent abatement for landlord default, self-help rights)

Tenant Tip

Ensure you have adequate cure periods — at least 5 business days for monetary defaults and 30 days for non-monetary defaults. Negotiate self-help rights that allow you to make essential repairs and deduct costs from rent if the landlord fails to perform its obligations within a reasonable timeframe.

Landlord Tip

Rent acceleration clauses (requiring the tenant to pay all remaining rent upon default) are powerful remedies but may not be enforceable in all jurisdictions. Consult local counsel. Include a right of re-entry to regain possession quickly in the event of abandonment.

12. Miscellaneous Provisions

  • ☐ Estoppel certificate obligations (response deadline)
  • ☐ Subordination / SNDA provisions
  • ☐ Force majeure clause
  • ☐ Governing law and venue for disputes
  • ☐ Signage rights

Tenant Tip

An SNDA (Subordination, Non-Disturbance, and Attornment Agreement) protects your lease if the landlord's lender forecloses on the property. Without an SNDA, a foreclosure could terminate your lease. Always request one, especially for long-term leases. Learn more about how lease abstraction captures these provisions.

Landlord Tip

Estoppel certificates are routinely required by lenders and buyers during financing or sale. Set a reasonable response deadline (10–15 business days) and include a “deemed approved” provision if the tenant fails to respond. This prevents a single unresponsive tenant from stalling a transaction.

How to Use This Checklist

This checklist is designed to be used at three critical points in the commercial leasing lifecycle:

  • Before signing a new lease: Work through every section systematically. Flag missing items and ambiguous language for negotiation or legal review.
  • During due diligence (acquisitions): Abstract each lease in the portfolio using this framework. Identify non-standard provisions, upcoming expirations, and financial exposure. A structured lease abstract template pairs well with this checklist.
  • At renewal: Revisit sections 3, 4, 5, and 7 to evaluate whether the existing terms still serve your needs. Renewal is your best opportunity to renegotiate CAM caps, escalation rates, and improvement allowances.

For teams managing large portfolios, manual review of every lease against this checklist is time-consuming. AI-powered lease abstraction can extract structured data from lease PDFs in minutes, making it practical to apply this level of rigor across hundreds of leases. Organizations subject to ASC 842 reporting requirements should also review the ASC 842 lease abstraction checklist for compliance-specific items.

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Frequently Asked Questions

What should I look for when reviewing a commercial lease?

Focus on rent structure, escalations, CAM caps, renewal deadlines, termination rights, and maintenance obligations. These clauses have the biggest financial impact over the life of the lease. Use a structured checklist to ensure nothing is missed.

How long does a commercial lease review take?

Manual review of a standard commercial lease typically takes 2 to 4 hours. Complex leases with multiple amendments, exhibits, and riders can take 6 to 10 or more hours. AI-powered lease abstraction tools can reduce this to minutes for structured data extraction.

Should I hire a lawyer to review a commercial lease?

Legal review is recommended for first-time tenants or leases with annual rent above $50,000. Attorney lease review typically costs $500 to $3,000 depending on complexity. For portfolio-level reviews, automated abstraction followed by attorney review of flagged clauses is more cost-effective.

What is the most important clause in a commercial lease?

There is no single most important clause, but rent escalation, CAM structure, and renewal options have the biggest financial impact over the lease term. A 1% difference in annual rent escalation on a 10-year lease can represent hundreds of thousands of dollars in cumulative cost difference.

What percentage of CAM reconciliations have errors?

Approximately 40% of CAM reconciliations contain material errors according to industry research by PredictAP. Common errors include double-counted expenses, capital improvements improperly classified as operating expenses, and management fees exceeding contractual caps. Always exercise your audit rights.

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