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Commercial Real Estate Leasing: What Landlords and Tenants Should Review Before Signing

By Scott Fitzgerald • 08/05/2025

By Fitzgerald Law Offices | Worcester, Massachusetts

 

Leasing commercial property is a significant decision for both landlords and tenants. Whether you’re renting out office space, a storefront, or industrial property, the terms of the lease will define your legal and financial relationship for years to come. That’s why it’s essential to understand the fine print before signing on the dotted line.

 

At Fitzgerald Law Offices, we help clients across Worcester, Massachusetts protect their interests in commercial leasing agreements. Here’s what landlords and tenants should know—and what to watch out for—before entering into a lease.

 

Key Commercial Lease Clauses to Review

 

Commercial leases are far more complex than residential ones. These agreements often include terms that impact day-to-day operations, maintenance responsibilities, and long-term financial obligations. Some of the most important clauses include:

 

1. Rent Structure

  • Base rent: The fixed monthly amount.

  • Additional rent: Includes expenses like property taxes, insurance, and maintenance (commonly referred to as “triple net” or NNN charges).

  • Rent escalations: Increases over time, often tied to inflation or set on a schedule.

2. Term and Renewal Options

  • Clearly define the length of the lease and any renewal options. Are they automatic, or do they require renegotiation?

3. Use Clause

  • This limits how tenants may use the space. Landlords often include restrictions to avoid conflicts with other tenants or zoning issues. Tenants should ensure their planned business activities are fully permitted under this clause.

4. Maintenance and Repairs

  • Who is responsible for structural repairs, HVAC systems, roof maintenance, and snow removal? These obligations should be clearly spelled out to avoid disputes.

5. Improvements and Alterations

  • Tenants often want to customize the space. The lease should address whether landlord consent is needed and who pays for any work done.

6. Default and Termination

  • What happens if a party breaches the lease? Look for grace periods, penalties, and termination rights.

7. Assignment and Subletting

  • Can the tenant sublease or assign the lease to another party? This is important for growing businesses or unexpected changes.

 

Legal Tips for Landlords

 

As a landlord, your goal is to protect your property while maximizing its value. A well-drafted lease:

  • Minimizes liability by clearly assigning maintenance responsibilities

  • Provides remedies for tenant default

  • Limits unauthorized use or alterations to the space

  • Ensures financial stability with personal guarantees or security deposits

We recommend a custom lease agreement tailored to the specific property and tenant—not a generic template.

 

Legal Tips for Tenants

 

Tenants should approach a commercial lease as a negotiable contract—not a take-it-or-leave-it deal. Important strategies include:

  • Negotiating rent increases: Request caps or longer fixed-rate terms

  • Clarifying “CAM” charges (common area maintenance): Ensure transparency and fairness

  • Understanding your exit options: Look for early termination or subletting clauses

  • Seeking exclusivity: Protect your business from competing tenants in the same building

Before signing, have an attorney review the lease to identify any hidden risks or unfavorable terms.

 

Why Legal Guidance Matters

 

Commercial lease disputes can be costly and time-consuming. Preventing problems through clear, enforceable lease language is always the better option. At Fitzgerald Law Offices in Worcester, Massachusetts, we represent both landlords and tenants in commercial leasing matters—from drafting and negotiating agreements to resolving disputes.

 

Our real estate attorneys bring decades of experience and a deep understanding of Massachusetts real estate law. We make sure your lease aligns with your goals and reduces legal exposure.

 

Let Fitzgerald Law Offices Help

 

Whether you're a landlord leasing commercial space or a business owner securing a new location, you need a lease that protects your interests. Contact Fitzgerald Law Offices in Worcester, MA, to review, draft, or negotiate your commercial lease with confidence.

 

Fitzgerald Law Offices


Trusted counsel for real estate and leasing matters in Worcester, Massachusetts.
https://www.fitzgeraldlawoffices.com

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