Common pitfalls in California commercial leases

Finding the right space for your business feels exciting. It marks growth and creates stability. The challenge is that commercial leases in California are long and detailed contracts. If you rush through them, small details can lead to major problems later. Knowing where many tenants stumble helps you sidestep the same mistakes.

HIDDEN COSTS IN LEASE TERMS

A lease that looks affordable on paper may hide expensive obligations. Triple net leases often pass along property taxes, insurance and maintenance. If those costs are not capped, they can rise faster than expected. Careful review keeps you from committing to payments that hurt your bottom line.

UNCLEAR REPAIR AND MAINTENANCE DUTIES

Another trap lies in repair language. Landlords sometimes expect tenants to handle repairs that go beyond day-to-day upkeep, even structural issues. Unless the lease states who is responsible, you could face bills that were never in your budget. Clarity up front protects you from these surprises.

RESTRICTIONS THAT LIMIT GROWTH

Your lease should fit your business today and in the future. Use clauses that limit operations or block subleasing can prevent growth. When your company changes direction or expands, these limits may stop you from making smart moves. Spotting restrictive language early preserves flexibility.

OVERLOOKED DISPUTE RESOLUTION TERMS

Most tenants skip over dispute resolution clauses yet they carry real weight. Some require arbitration, others force you to handle cases far from your property. Both options can add time and expense if conflict arises. Addressing this section before you sign can save you headaches later.

PROTECTING YOUR BUSINESS

A commercial lease is more than a rent check. It defines your rights and responsibilities for years. By catching hidden costs, unclear duties, restrictive clauses and unfair dispute rules, you safeguard your business. Speaking with a real estate attorney before signing helps ensure your lease supports your goals and keeps your investment secure.

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