The Most Expensive Lease Clause Business Owners Ignore

The Most Expensive Lease Clause Business Owners Ignore

The most expensive clause in a commercial lease is often not the rent. It is the expense structure.

Base year resets. Operating expense pass throughs. Tax increases. Capital expenditure language. A one dollar per square foot misunderstanding can become tens of thousands of dollars over a multi year term. From my perspective, clarity in expense language protects cash flow more than negotiating headline rent. Always look beyond the base rent.

/ Commercial Real Estate

About the Author

Lynn Drake’s status is well known in the industry: She’s the commercial realtor focused on maintaining “true north” for her corporate clients. It’s a reputation built on 35 years of commercial real estate experience. Lynn became a commercial realtor in 2001 after 15 years in corporate real estate. Thus far in her career, Lynn has successfully completed over 1,500 real estate transactions ranging from small business tenant leases to the sale and purchase of industrial complexes.