How to Negotiate the Best Terms in a Commercial Lease

Signing a commercial lease is a big commitment — and getting the terms right is vital. Whether you're opening a new shop, leasing office space, or renting a unit for your business, negotiating the right lease terms can save you thousands in the long run.

Here’s what every business owner should consider before signing.

1. Understand What You're Signing

A commercial lease is not a one-size-fits-all document. Before anything else, get legal advice. Every term should be reviewed carefully — because once it’s signed, you’re legally bound.

2. Key Terms to Negotiate

There are several clauses and terms that can (and should) be negotiated:

Rent & Rent Reviews

Is the rent fixed or subject to review?

How often will reviews take place?

Is the increase based on market rent, RPI, or another method?

Lease Length & Break Clauses

How long is the lease?

Can you break it early if the business grows or needs to downsize?

Is the break clause mutual (for both landlord and tenant)?

Repair Obligations

Are you taking on a full repairing lease?

Who is responsible for structural repairs?

Can a schedule of condition limit your liability?

Service Charges

What services are included?

Are there caps or fixed amounts?

Can the landlord increase charges unexpectedly?

Use Clause

Does the lease allow for your intended use?

Are you restricted from changing your business model?

3. Plan for the End of the Lease

Think about the exit strategy:

Are you required to return the property to its original condition?

Do you have to remove signage or fittings?

Is there a clause about reinstatement?

4. Security of Tenure

Under the Landlord and Tenant Act 1954, some tenants have a right to renew their lease. Check whether your lease is excluded from this protection — it’s a key negotiating point.

5. Get It in Writing

No matter what’s discussed verbally, it’s only enforceable if it’s in the contract. Your solicitor should make sure all agreed terms are clearly documented.

Final Thoughts

The terms of your lease can impact your cash flow, growth potential, and exit strategy. That’s why getting expert legal advice before you sign is essential.

At Ancora Law, we help businesses across Hull and East Yorkshire secure lease terms that work for them — not just their landlord.

📞 Need help negotiating a lease? Speak to our commercial property team today.