Commercial Leases – all you need to know

If you are thinking about renting a commercial property for your business it is so important to understand some of the important things that should be included in your lease. Some of these get excluded from some leases and therefore, by being aware of their exclusion you can either negotiate to get them included, or help you to negotiate on the price some more, and hopefully achieve a better deal.

Lease Length

You should give some careful thought and consideration to the length of the lease you require. If you are just starting up and you are not sure of the future, perhaps a five or ten year lease is not ideal. If you are an established business looking to grow, a longer term lease will probably work better for you. Whilst longer term lease rents will be cheaper, if your business is not as successful as you hope and you have committed to a longer lease, you may struggle to pay it, or to sublet if your lease allows you to.13712555_s

Rent reviews

Most leases will contain a rent review clause. This allows the landlord of the property to review rental prices over a longer term lease. This is particularly useful for your landlord if the area where your commercial premises is located suddenly grows significantly in value. Take advice from your solicitor about what is an acceptable period for rent reviews to take place.

Repair and maintenance

You will have responsibilities as the tenant in a commercial property to maintain and keep the property in order. Your lease will identify the parts that the landlord is responsible for and those that you are responsible for. Make sure that you know what your responsibilities are and keep up with these responsibilities

Lease breaks and Sublets

If you are opting for a longer lease length, you should think about whether you want to insert a lease break in the agreement. This will allow you to break your lease after an agreed period with no penalty. Similarly, there may be an option to sublet the remainder of your lease to someone else, but there are liabilities that would remain with you in these circumstances, so you should take advice from your solicitor.


Commercial leases can be complex and getting a commercial property solicitor to review and offer you advice on your potential commercial property lease is essential. This will protect you and make sure that all the clauses are relevant and are not there to erode your rights.

You should also remember that it is important to comply with all parts of your lease. It may be that your landlord has gone quiet over renegotiations of your lease for example. However the landlord may be hoping that you break the terms of your lease so they don’t have to renegotiate terms.

Don’t hesitate to contact our experienced commercial property team to discuss your commercial lease needs today. You can call us on +44 20 7490 5861 or complete our brief Online Enquiry and we’ll be in touch soon.