Leasing commercial property in California is a major financial commitment. A poorly negotiated lease can lead to unexpected costs and restrictions. Having an attorney review or negotiate your lease helps protect your rights and long-term business goals. Attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, and surrounding communities.
Why Lease Negotiations Matter
Unlike residential leases, commercial leases are less regulated in California, which means terms can heavily favor landlords if not carefully negotiated.
Key Provisions to Review
1. Rent and Rent Increases
Clarify how rent is calculated, and negotiate caps on annual increases.
2. Lease Term and Renewal Options
Define initial lease length and whether you have renewal rights.
3. CAM Charges (Common Area Maintenance)
Understand what fees you’re responsible for, such as landscaping, parking, or shared utilities.
4. Use Clauses
Ensure the lease allows your intended business operations and prevents landlords from leasing to direct competitors.
5. Tenant Improvements
Negotiate who pays for buildouts or renovations and whether you can remove improvements when leaving.
6. Subleasing and Assignment
Include provisions for flexibility in case you want to transfer the lease.
7. Exit Clauses
Address early termination rights, buyout options, and responsibilities at lease end.
California-Specific Considerations
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Compliance with ADA (Americans with Disabilities Act) requirements.
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Earthquake safety standards for older buildings.
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Environmental impact regulations for certain businesses.
FAQs About Commercial Leases
Can I negotiate a commercial lease in California?
Yes—almost all terms are negotiable.
Should I sign a landlord’s standard lease?
Not without review. Standard leases are often written in favor of the landlord.
Do I need an attorney for small business leases?
Yes—long-term obligations and hidden fees can create major risks for small businesses.
Contact Us
Before signing a commercial lease in California, let our real estate attorneys protect your business interests. Contact us today for assistance with negotiations.
Have any legal questions? Contact the Attorneys at SBEMP Law Firm:
For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.
SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.
