5 Common Mistakes in Commercial Lease Agreements (And How to Avoid Them)

Signing a commercial lease is one of the biggest commitments a business can make. Whether you’re opening your first office or expanding into a new location, a lease agreement defines your rights, responsibilities, and financial obligations for years to come.

Yet, many business owners sign these contracts too quickly, often without a full understanding of the fine print, and that can lead to costly disputes or unexpected liabilities down the line.

We’ve seen how avoidable mistakes in lease agreements turn into expensive legal problems. So, here are five of the most common mistakes to watch for, along with tips on how to avoid them.

1. Not Reviewing the Lease with a Commercial Real Estate Attorney

Commercial leases are not one-size-fits-all. Unlike residential leases, they’re often heavily negotiated and written to favor the landlord. Clauses about maintenance, rent increases, and default can have serious long-term implications.

Without an attorney reviewing the lease before you sign, you might miss hidden costs or obligations, such as triple-net (NNN) terms that make you responsible for property taxes, insurance, and maintenance.

Why this matters: Once you’ve signed, you’re legally bound by those terms. Having a lawyer review your lease ensures that it’s balanced, fair, and that you fully understand what you’re committing to.

2. Overlooking Personal Guarantee Clauses

One of the most common and riskiest parts of a commercial lease is the personal guarantee. This clause makes you personally responsible for the business’s lease obligations if your company can’t pay.

That means if your business closes or defaults, the landlord can pursue your personal assets to collect unpaid rent.

How to protect yourself: A lawyer can negotiate to limit or remove this clause, or propose alternatives such as a limited guarantee or a larger security deposit instead. In Florida, this can make the difference between closing a business and risking personal financial ruin.

3. Ignoring Maintenance and Repair Obligations

Many business owners assume that landlords handle property maintenance. In commercial leases, that’s rarely the case. Some leases make the tenant responsible for major repairs, including structural ones, depending on how the clauses are written.

This can lead to disputes over who pays when the HVAC fails or when roofing repairs are needed.

The solution: Clarify exactly who is responsible for maintenance and repairs before signing. Have your attorney review these provisions to make sure you’re not assuming unexpected liabilities.

4. Failing to Address Early Termination or Assignment Rights

Businesses evolve. You may need to downsize, relocate, or sell your company before the lease term expires. If your lease doesn’t include termination or assignment rights, you may be stuck paying rent for the remainder of the lease even if you’ve moved out.

Ask these questions before signing:

• Can I assign the lease if I sell the business?
• What happens if I need to leave early?
• Is there a termination penalty or buyout option?

Addressing these scenarios in advance provides flexibility and prevents future legal headaches.

5. Misunderstanding Rent Escalation Clauses

A common trap in commercial leases is the rent escalation clause, which allows rent to increase over time, sometimes annually, sometimes based on the landlord’s expenses.

Many tenants overlook how these increases are calculated, resulting in unexpected costs that strain their budgets.

Protect your bottom line: Review how and when rent adjustments occur. Negotiate caps on increases and ensure any escalation formula is clearly defined and transparent.

Why Legal Review Matters for Commercial Leases in Florida

Florida law allows wide flexibility in commercial contracts, which means landlords often hold the upper hand when drafting leases. Once signed, your ability to challenge unfair terms is limited.

Having a Florida real estate attorney review or negotiate your lease can help:

• Identify clauses that expose you to unnecessary liability
• Ensure your rights as a tenant are clearly defined
• Protect your personal assets from business-related claims
• Prevent disputes that could lead to litigation later

At Ayala Law, our attorneys handle both the transactional and litigation sides of commercial real estate. We not only help clients negotiate solid leases, we also represent them when disputes arise, including unpaid rent claims, breach of contract actions, and property-related litigation.

Final Thoughts: A Commercial Lease Should Protect You, Not Trap You

A well-drafted lease sets the foundation for a stable business relationship, but a poorly written one can expose you to years of avoidable costs and conflict. Before signing, take the time to review every clause with a qualified attorney who understands Florida’s commercial real estate laws. 

If you need help reviewing, negotiating, or litigating a commercial lease in Florida, contact one of our experienced attorneys in Miami at 305-570-2208.

You can also contact our founding attorney Eduardo A. Maura at eduardo@ayalalawpa.com.

Schedule a case evaluation online here.

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].