By Kas Filippova, eXp Commercial
📍 Serving Cleveland and Northeast Ohio landlords, tenants, and investors

Signing a commercial lease is one of the biggest commitments a business owner can make — it affects your cash flow, your flexibility, and even your ability to grow. Whether you’re opening your first storefront, expanding your fitness studio, or relocating your office, understanding the lease structure and key terms can save you thousands of dollars (and plenty of headaches) down the road.

Here’s a breakdown of what every business owner should know before signing on the dotted line.

1️⃣ Know What You’re Paying For

Not all leases are created equal.

• Gross Lease: You pay one flat rate; the landlord covers most expenses like taxes, insurance, and maintenance.

• Triple Net (NNN) Lease: You pay base rent plus your share of property taxes, insurance, and maintenance costs.

• Modified Gross Lease: A hybrid structure where you share some expenses, like utilities or snow removal.

➡️ Tip: Always ask for a breakdown of what’s included — and what’s not — so you can project your total monthly cost accurately.

2️⃣ Review the Lease Term and Renewal Options

Commercial leases typically run 3–10 years, often with renewal options.

Make sure you understand:

• The initial lease term (how long you’re locked in).

• Renewal rights — and whether rent increases are tied to market value or a fixed percentage.

• Exit clauses — what happens if your business outgrows the space or needs to downsize?

➡️ Pro Tip: Negotiate flexibility early. Renewal terms, sublease rights, and expansion options can make a huge difference later.

3️⃣ Understand Your Build-Out and Maintenance Responsibilities

Who pays for improvements?

Build-outs, HVAC replacements, or plumbing repairs can add up quickly. Some leases make tenants responsible for everything except the roof and structure; others include a tenant improvement (TI) allowance where the landlord covers part of the renovation.

➡️ Before signing, clarify:

• What condition the space will be delivered in.

• Whether the landlord will contribute to improvements.

• Who handles ongoing repairs (HVAC, plumbing, etc.).

4️⃣ Evaluate the Location — Beyond the Address

The right space is about more than square footage. Look at the area’s demographics, traffic patterns, visibility, and accessibility.

• Is there strong foot traffic?

• Can customers park easily?

• What complementary businesses are nearby?

In Greater Cleveland, popular corridors like Detroit Ave (Lakewood), Lorain Ave (Ohio City), and Center Ridge Rd (Westlake) attract consistent activity and make it easier for new tenants to gain visibility fast.

5️⃣ Don’t Overlook the Fine Print

Even a few lines in the lease can have major financial implications:

• Personal guarantees: Do you personally guarantee the lease?

• Common area maintenance (CAM) clauses: Are they capped?

• Insurance requirements: Are they standard or excessive?

➡️ Always have an experienced commercial broker and attorney review the lease before signing. They’ll spot red flags and negotiate terms that protect your business.

6️⃣ Think Long-Term

Your lease isn’t just a place to operate — it’s a strategic decision that impacts growth.

If your business is expanding, consider properties with room to grow, flexible layouts, or expansion potential within the same complex. If stability is your priority, look for long-term leases in established corridors with strong demographics and consistent tenant demand.

Final Thoughts

A commercial lease is more than a legal document — it’s a business partnership between landlord and tenant. Understanding the structure, responsibilities, and long-term implications ensures your lease supports your success rather than limiting it.

Whether you’re opening your first location or expanding your brand, working with a knowledgeable broker who understands the local market can help you secure the right space, the right terms, and the right deal.

Kas Filippova | eXp Commercial
📞 216-374-3689
🌐 kascommercial.com
📍 Cleveland, Ohio