10 Steps to Take Before Signing a Commercial Property Lease

Renting a commercial property is one of the biggest decisions a business can make. Whether you’re opening your first retail shop, moving into a larger office, or expanding into warehouse space, signing a lease is a serious legal commitment. While it is an exciting time for your business, you don’t want to rush into a commercial property lease without doing your due diligence and research. Obtaining the right commercial lease advice before you sign on the dotted line can protect your business from unnecessary costs and disputes down the line.

In this blog, our commercial lease solicitors explain the 10 key steps you should take before signing a commercial property lease, and why seeking proper legal advice for commercial leases is essential. The team at Burt Brill & Cardens helps both landlords who own commercial property and tenants who are trying to find the perfect commercial space to meet all their business needs.

1. Understand What a Commercial Lease Really Means

A commercial lease is a binding contract between a landlord and tenant allowing you to occupy a business property for a fixed term, in exchange for rent. Unlike residential leases, commercial leases offer less statutory protection — meaning the terms of the contract dictate almost everything.

You’ll be responsible for rent, repairs, maintenance, insurance contributions, and often service charges. Before signing, ensure you understand what you’re agreeing to and have an experienced commercial lease solicitor review the terms.

2. Clarify Your Business Needs

Think carefully about what your business needs now — and what it may need in the future. Perhaps you have already outlined your property needs in your business plan. If it isn’t something you’ve considered, now is the time to take a hard look at the needs of your business and what you can financially handle. Be realistic, and don’t skip over this important step.

Consider:

• How much space do you require for staff, stock, or clients
• What parking is available, your accessibility needs, and transport links
• Whether you may need flexibility to expand or exit the lease early.

Taking time to plan ensures the property supports your growth, rather than restricting it, while keeping realistic expectations of what your budget can handle. Your solicitor can negotiate clauses to protect future flexibility, such as break clauses or renewal rights.

3. Check Planning Permission and Permitted Use

Before renting, confirm that the property’s planning use class matches your intended business activity. For example, an office space (Class E) may not automatically allow manufacturing or storage.

If changes are needed, a planning consultant can help you apply for planning permission or negotiate with the landlord for alterations. Acting early prevents costly problems if you later find your business is operating unlawfully.

4. Inspect the Property and Commission a Survey

Never sign a lease without inspecting the property thoroughly. Structural issues, outdated wiring, or damp problems can become your responsibility once the lease is signed. A professional surveyor can highlight potential liabilities and help negotiate a fair agreement. For example, if repairs are needed, you might request a rent-free period or landlord contribution before moving in.

Repairs add a substantial cost, but also the time needed for repairs could prevent you from opening your business when you wanted. So if your perfect space needs renovation or repairs, you may have to adjust your schedule and take into account extra time.

5. Review the Heads of Terms Carefully

The Heads of Terms outline the main points of the lease before it’s drafted. Although not legally binding, they form the foundation of your agreement — including rent, deposit, duration, break clauses, and repair obligations.

Seek commercial property legal advice at this stage to ensure the terms reflect what was agreed and are commercially fair. It’s easier to negotiate changes now than after the lease is written.

Related: Get our free guide on how to Maximise Your Lease

6. Understand Repair and Maintenance Obligations

Many tenants are surprised to learn how extensive their repair obligations are. A full repairing and insuring lease (FRI lease) means you could be responsible for repairing the entire property, even issues that existed before you moved in.

Your solicitor can negotiate limitations or request a Schedule of Condition, which protects you from being charged for pre-existing damage when you leave. A Schedule of Condition is a detailed written and photographic record describing the physical condition of a commercial property at the start of a lease. It is usually attached to the lease as a reference document and serves as evidence of the property’s state before the tenant takes occupation. We can recommend someone to do this depending on the property type and size. 

This schedule protects tenants by limiting their repairing obligations to the condition the property was in when they first rented it — rather than requiring them to return it to a “better” or “like new” condition. Without one, you could be legally responsible for putting the entire building into full repair, even if it was already damaged or poorly maintained when you moved in.

7. Negotiate Rent, Break Clauses, and Rent Reviews

The rent amount isn’t the only figure that matters when writing the lease agreement. The lease should also clearly outline:

• When rent reviews occur (often every 3–5 years)
• How rent will be calculated (e.g., market rent or index-linked)
• Whether there’s a break clause allowing you to exit early

A surveyor can provide rent comparisons to see if there is a justification to negotiate fairer terms, ensuring you don’t get trapped in an unaffordable lease. This is one of the most valuable reasons to seek commercial lease advice before committing, as many new businesses fail because they took on a space that they couldn’t afford long-term. We, as solicitors, can explain what the rent provisions mean and act as coordinator between the tenant and landlord’s advisor.

8. Check Service Charges and Additional Costs

In multi-occupancy buildings or business parks, landlords often charge tenants a service charge to cover shared facilities like lifts, cleaning, and maintenance. These can add significantly to your annual costs.

Your solicitor will review how service charges are calculated and whether they’re capped. They can also check for hidden costs, such as insurance contributions or management fees, helping you budget accurately.

9. Review Assignment, Subletting, and Alteration Clauses

If your business grows or changes direction, you might need to assign (transfer) your lease or sublet part of the property. Some leases prohibit this entirely or require landlord consent.

Your solicitor can ensure flexibility by negotiating reasonable assignment or subletting rights. They can also review any restrictions on alterations — for example, fitting out a shop or adding internal partitions — so your plans aren’t hindered later.

10. Finalise and Register the Lease

Once all terms are agreed, your solicitor will handle the signing, completion, and registration of the lease with HM Land Registry (if the lease lasts seven years or more). They’ll also manage the exchange of rent deposits and ensure compliance with Stamp Duty Land Tax (SDLT) requirements.

Having a commercial lease attorney or solicitor manage this process ensures that all documents are legally valid and your business interests are protected.

Why You Need Professional Legal Advice before Signing

Entering into a commercial property lease without proper legal advice can expose your business to long-term financial risk. Many disputes arise because tenants didn’t understand their obligations or signed unfair terms.

A commercial lease solicitor can:

• Identify hidden liabilities
• Negotiate better terms and rent
• Ensure compliance with property and planning laws
• Protect your right to renew or exit the lease

Understanding the ins and outs of your lease commitment can save you many times over the cost of getting guidance from a commercial lease solicitor. 

How Burt Brill & Cardens Can Help

Before you enter into a lease, get in touch with Burt Brill & Cardens. Our expert commercial conveyancing services provide clear, practical advice for landlords and tenants. Whether you’re leasing an office, shop, or industrial unit, we’ll guide you through every stage, from negotiations to completion, ensuring your lease supports your business goals.

We make commercial property legal advice simple and stress-free, protecting your interests and helping you make confident decisions.

FAQs: Commercial Property Leases 

1. What’s the difference between a commercial lease and a licence?

A lease gives you exclusive possession of a property for a set term — meaning the landlord can’t use or enter it without permission. A licence, by contrast, permits you to use space but with fewer rights and more flexibility, and may allow the landlord to end the licence with short notice. It’s vital to know which you’re signing, as it affects your legal protection and obligations.

2. How long is a typical commercial lease?

Commercial leases usually range from 3 to 25 years, depending on the business and property type. Shorter leases offer flexibility, while longer ones provide security. Your solicitor can help negotiate break clauses or renewal rights to suit your business goals.

3. Can I negotiate the rent or other terms?

Yes. Most aspects of a commercial property lease are negotiable — including rent, rent-free periods, repairs, and service charges. An experienced commercial lease solicitor can identify unfair terms and help you negotiate more favourable conditions.

4. What costs are involved besides rent?

In addition to rent, tenants often pay business rates, service charges, insurance contributions, repairs, and utilities. Before signing, always ask for a breakdown of the full costs to budget accurately and avoid surprises. This includes whether you need to do repairs at move-out.

5. What is a break clause, and why is it important?

A break clause allows either the tenant or landlord to end the lease early, usually after a fixed period. Including a well-drafted break clause provides flexibility if your business needs change or trading conditions shift.

6. Who is responsible for repairs and maintenance?

Most leases are full repairing and insuring (FRI), meaning tenants are responsible for keeping the property in good condition, even for pre-existing issues. Your solicitor can negotiate limits or request a Schedule of Condition to protect you from unfair repair costs.

7. Do I have to pay Stamp Duty Land Tax (SDLT)?

Yes — SDLT applies to most commercial leases where the premium or rent value exceeds certain thresholds. Your solicitor will calculate and file the SDLT return on your behalf.

8. Can I sublet or share the space with another business?

Some leases allow subletting or sharing occupation, but often only with the landlord’s consent. It’s crucial to check these clauses before signing if you might need flexibility in the future.

9. What happens if I want to leave early?

You can usually only leave early if there’s a break clause or if the landlord agrees to a surrender. Ending a lease without these options can have serious financial consequences, so take legal advice before acting.

10. Do I need a solicitor for a commercial lease?

Yes — commercial leases are complex and legally binding. A commercial lease solicitor will ensure you understand your obligations, negotiate fair terms, and register the lease properly, protecting you from long-term risks.

11. What should I look out for in a commercial lease?

Common red flags include:

• Uncapped service charges
• Unfavourable rent review clauses
• Hidden repair liabilities
• No flexibility for early exit or renewal

Our solicitors can review and explain each clause so you sign your commercial lease with confidence. Get in touch with our commercial property team today by calling us on 01273604123 to discuss your needs and find out how we can support you. Alternatively, you can reach us by email at enquire@bbc-law.co.uk or make an enquiry.