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Leasing a commercial space is a big step, whether you’re launching your first business, expanding, or moving to a new location. The terms of your lease can affect everything from your monthly costs to your ability to grow. At LaFountain & Wollman, P.C., we help business owners and property owners understand what they’re signing and how to protect their interests before committing.
Here’s a helpful overview of what you should know before signing a commercial lease in Massachusetts.
Understanding the Commercial Lease
Commercial leases differ significantly from residential leases. They’re longer, more flexible, and often come with more financial responsibility. While residential leases tend to follow a standard format, commercial agreements vary widely depending on the type of property, how it will be used, and who’s responsible for what.
There are a few common lease types to be aware of:
- Gross lease – You pay a flat monthly rent, and the landlord covers most property-related costs.
- Net lease – You pay base rent plus some or all of the property expenses (taxes, insurance, maintenance).
- Triple net lease (NNN) – You pay base rent plus all property expenses, including taxes, insurance, and maintenance.
- Modified gross lease – Costs are split in a way both parties agree on.
Before signing anything, it’s important to understand which lease structure you’re dealing with and how it affects your bottom line.
What to Look for Before Signing
A commercial lease isn’t just about monthly rent. There are several key terms that can significantly impact your experience long-term.
Pay close attention to:
- Rent structure – Is there a base rent plus fees? Are there scheduled increases?
- Lease duration – How long is the lease, and are there renewal options?
- Common area maintenance (CAM) fees – Will you be paying for shared spaces or property management?
- Permitted use – Does the lease clearly define what you’re allowed to do on the premises?
- Exclusivity clause – Will you be protected from direct competitors leasing nearby?
Even seemingly small clauses can carry weight later. We often review leases for clients who missed something in the fine print, only to run into issues after signing.
Your Responsibilities Under the Lease
Commercial tenants are generally expected to assume more responsibility than residential tenants. These may include:
- Maintenance and repairs – You may be responsible for upkeep inside your unit or for larger structural issues, depending on the lease.
- Insurance requirements – The landlord may require specific coverage for liability, property damage, or business interruption.
- Code compliance – You’ll need to meet local zoning laws and safety regulations.
If something isn’t spelled out clearly, it’s best to get it in writing before you move in. A handshake or verbal promise won’t help much if there’s a disagreement down the line.
Negotiating Terms That Work for You
Many lease terms are negotiable. You’re not expected to accept the first version of the agreement as-is. If something doesn’t work for your business or feels one-sided, speak up.
Some areas where negotiation can benefit you include:
- Buildout period – Ask for time to make improvements before rent begins.
- Cap on operating costs – Limit how much your share of expenses can increase each year.
- Early termination clause – Build in an option to exit the lease if your business needs change.
- Right of first refusal – Gain the first chance to lease adjoining space if it becomes available.
We’ve helped clients adjust leases to fit their goals while maintaining a respectful relationship with the landlord. A clear, fair agreement benefits everyone.
How We Can Help You Lease With Confidence
At LaFountain & Wollman, P.C., we work with business owners, tenants, landlords, and investors across Massachusetts to draft, review, and negotiate commercial leases. We’re familiar with the leasing practices in different parts of the state, from busy retail spaces to office parks and industrial properties.
We’ll review the lease with you, explain the terms in plain English, and offer suggestions that help you avoid common mistakes. If changes are needed, we’ll help you work through them with the other party or their attorney.
Start With the Right Legal Support
Leasing commercial property is a big commitment, and you deserve to go into it with your eyes open. Whether you’re reviewing or creating a lease for a storefront, an office suite, or industrial space, it’s worth taking the time to understand exactly what you’re agreeing to.
At LaFountain & Wollman, P.C., we’ll make sure the lease aligns with your business goals and doesn’t include any hidden surprises. Contact us today to schedule a consultation with a member of our team.