Reviewing a Commercial Lease: Questions Worth Asking

Office, retail, and industrial leases often run for several years. A careful review before signing helps a business understand its commitments over the full term.

Wanjiru KamauPartner (sample)18 March 20261 min read

In summary

Understand the total cost of occupation, not only the headline rent.
Check repair, alteration, and service charge obligations.
Consider how flexible the lease will be if the business changes.

A commercial lease is a long-term commitment. It governs not only what a business pays, but also how it may use, alter, and leave its premises. Reviewing the lease carefully before signing allows a tenant to raise questions while there is still scope to negotiate.

The total cost of occupation

Beyond the rent, consider deposits, service charges, rent review provisions, and any other payments the tenant is expected to make. Understanding how and when these may change helps a business plan realistically.

Repair and maintenance

Leases allocate responsibility for repairs between landlord and tenant. Read these obligations carefully, particularly where the premises are not in good condition at the start of the lease. A record of the condition at handover can be valuable later.

Use and alterations

Check that the permitted use covers what the business intends to do, and whether landlord consent is needed for fit-out works or later alterations.

Flexibility

Is there a break clause, and what conditions must be met to use it?
Can the lease be assigned or the premises sublet if the business moves or restructures?
What happens at the end of the term, and what reinstatement is required?

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