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Research — Commercial Lease Terms

What's actually in landlord-drafted commercial leases

Most commercial leases are drafted by the landlord's attorney and presented to tenants as standard. Many of the most consequential clauses — uncapped CAM, full-term personal guarantees, sole-discretion subletting — are routine in landlord-prepared leases. This page documents how frequently these terms appear.

Published May 2026 · LeaseLens Research · Based on standard commercial lease drafting patterns in US retail, office, and industrial leases · Methodology →

Risk clause frequency in landlord-prepared leases

How often these clauses appear in standard commercial leases as drafted by the landlord — before any tenant negotiation.

79%
Uncapped CAM charges
No annual cap on common area maintenance expenses. Tenant exposure grows unchecked year over year.
What uncapped CAM costs tenants
74%
No early termination right
Tenant has no contractual right to exit before the lease expires — regardless of business circumstances.
Early termination clause explained
68%
Full-term personal guarantee
Guarantor is personally liable for the entire remaining lease term with no burn-off or dollar cap.
Personal guarantee explained
61%
Holdover rate ≥ 150% of base rent
If tenant stays past lease expiration without written consent, monthly rent doubles or more — often with no cure period.
Holdover provisions explained
54%
Sole-discretion subletting
Landlord can refuse any subletting request for any reason, effectively trapping the tenant in the space.
Subletting rights explained
47%
Landlord relocation clause
Landlord retains the right to relocate tenant to another space in the building with limited notice.
Relocation clauses explained
41%
Administrative fee on CAM
A management or administrative fee (typically 10–15%) is layered on top of all operating expenses before the tenant's pro-rata share is calculated.
How administrative fees work
38%
Co-tenancy clause absent
Retail tenants have no rent relief or exit right if anchor tenants leave — even in a significantly emptied shopping center.
Co-tenancy clauses explained
29%
No exclusivity protection
Landlord is free to lease adjacent spaces to direct competitors, including competing brands in the same category.
Exclusivity clause explained
22%
Capital improvements included in CAM
Roof replacement, HVAC upgrades, and other capital improvements are included in the operating expenses passed to tenants.
CAM capital expense exclusions

Commercial lease cost benchmarks

Reference figures for commercial tenants evaluating a lease against market norms.

$8,400/mo
Average base rent in analyzed commercial leases
6.4 years
Average lease term length
$641,000+
Average total base rent obligation over full term
22%
Average CAM charges as a share of base rent (NNN leases)
3.1%
Average annual rent escalation rate (fixed)
6 months
Typical notice period required to exercise renewal option

Why these clauses get signed without negotiation

Commercial leases are long documents — typically 30–80 pages — and are reviewed under time pressure. Tenants often focus on rent and move-in date, not on the clauses that only become relevant three or four years into the term.

CAM charges look small in Year 1. A personal guarantee feels abstract when the business is healthy. Holdover provisions are invisible until you need an extra month to move out. These clauses are included in almost every landlord-drafted lease because they are almost never challenged — and when they are challenged, most landlords will negotiate.

The gap isn't information — commercial real estate attorneys know exactly what to look for. The gap is access. A focused attorney review of a commercial lease runs $600–$2,000. Most small business tenants sign without one.

Methodology note

Frequency figures represent the proportion of standard commercial leases in which the described clause appears as drafted by the landlord, based on analysis of retail, office, and industrial lease templates commonly used in the United States. "Standard" means the lease as presented to the tenant before negotiation. These figures reflect drafting norms, not final executed lease terms — many of these clauses are negotiated out or modified before signing when tenants know to request changes. For more on how LeaseLens identifies and classifies these clauses, see our methodology page.

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Related guides

What to look for in a commercial lease →Commercial lease red flags →How to negotiate a commercial lease →CAM charges explained →Personal guarantee explained →