A commercial lease is one of the largest financial commitments a small business will make — often hundreds of thousands of dollars over the lease term. Unlike residential leases, commercial leases in Pennsylvania have very few statutory protections for tenants. The lease itself is the governing document, and every clause matters.
Here are seven commonly overlooked provisions that can cost you if you do not negotiate them upfront.
1. CAM Charges (Common Area Maintenance)
Many commercial leases quote an attractive base rent but bury the real cost in CAM charges — the tenant's share of property taxes, insurance, maintenance, landscaping, snow removal, and sometimes even management fees. In a "triple net" (NNN) lease, these charges can add 30% to 50% on top of your base rent.
What to negotiate: Ask for a CAM cap that limits annual increases to a fixed percentage (typically 3% to 5%). Review what is included in CAM and push back on items like capital improvements, which should be the landlord's responsibility. Insist on the right to audit CAM charges annually.
2. Personal Guaranty
Most landlords require the business owner to personally guarantee the lease, meaning if your business fails, you are personally liable for the remaining rent. For a five-year lease at $3,000 per month, that is up to $180,000 of personal exposure.
What to negotiate: Try to limit the guaranty to a fixed period (such as the first 12 or 24 months) or a fixed dollar amount. If the business has a strong track record, negotiate a "burn-off" provision where the personal guaranty reduces over time as rent is paid on schedule.
3. Assignment and Subletting
If your business needs change — you outgrow the space, downsize, or want to sell — a restrictive assignment clause can trap you.
What to negotiate: Ensure the lease allows assignment or subletting with landlord consent, and specify that consent cannot be unreasonably withheld. If you sell your business, the new owner should be able to assume the lease without renegotiating from scratch.
4. Renewal Options
A lease without a renewal option gives you no leverage when the term expires. The landlord can raise rent dramatically, refuse to renew, or offer terms that force you to relocate — after you have invested in buildout, signage, and customer goodwill at that location.
What to negotiate: Include at least one renewal option (ideally two) with rent increases tied to a formula — either a fixed percentage, CPI adjustment, or fair market value with a floor and ceiling. Make sure the renewal notice period is reasonable (typically 6 to 12 months before expiration).
5. Tenant Improvement Allowance and Buildout
Who pays for the buildout — and who owns it when the lease ends? Many tenants invest tens of thousands of dollars in improvements only to discover that the lease requires them to restore the space to its original condition at move-out.
What to negotiate: Clarify the tenant improvement (TI) allowance upfront and get it in writing. Negotiate a clause that allows you to leave improvements in place at lease end. If the landlord is providing a TI allowance, understand whether it is a credit against rent or a direct reimbursement — and what happens if construction costs exceed the allowance.
6. Exclusivity and Use Clauses
A use clause defines what you can do in the space. Too narrow, and you cannot adapt your business. Too broad, and the landlord may lease adjacent space to a direct competitor.
What to negotiate: Make the use clause broad enough to cover your current business and reasonable expansions. If you are a specialty retailer, medical practice, or restaurant, negotiate an exclusivity clause that prevents the landlord from leasing to a competing business in the same property or shopping center.
7. Default and Cure Provisions
What happens if you miss a rent payment? In many commercial leases, a single late payment can trigger default, acceleration of the entire remaining lease balance, and eviction — with no opportunity to cure.
What to negotiate: Insist on a cure period — typically 10 to 30 days for monetary defaults and 30 to 60 days for non-monetary defaults. This gives you time to fix the problem before the landlord can take action. Also review the landlord's remedies: some leases allow the landlord to recover not just unpaid rent but also attorney fees, lost future rent, and the cost of re-leasing the space.
The Bottom Line
A commercial lease is a negotiation, not a take-it-or-leave-it document. Landlords expect tenants to negotiate, and the tenants who do consistently get better terms. The cost of having an attorney review and negotiate your lease is a fraction of what a bad lease provision can cost you over five or ten years.
At Ament Law Group, we review and negotiate commercial leases for tenants and landlords throughout Western Pennsylvania. We also handle the business law and entity structuring that surrounds a lease — making sure your business is properly formed, your liability is limited, and your lease fits into your overall legal strategy.
Signing a commercial lease? Call (724) 733-3500 before you sign. A lease review typically takes a few days and can save you thousands.
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