Your Actual Exposure: $150,000

A $3,000/mo general lease doesn't create $3,000/mo in liability. It creates $150,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.

Where $150,000 Comes From

Remaining Rent$54,000
Personal Guaranty$54,000
Restoration$15,000
CAM Charges$9,000
Early Termination$18,000
Legal Fees$10,000
Holdover$18,000
Total Exposure$150,000

What Most People Miss

The landlord drafted this lease. Every ambiguous provision resolves in the landlord's favor. First-time tenants don't know which provisions are standard, which are aggressive, and which are negotiable.

Key Risks in This Scenario

  • No baseline to compare against — first-timers accept whatever the landlord presents
  • Restoration obligation often not mentioned until move-out demand arrives
  • Personal guaranty scope not explained at signing — scope discovered at default

How to Reduce Your Exposure

  • Hire a tenant's attorney — $1,500-$3,000 to review and negotiate saves 10x in exposure
  • Never sign without understanding every provision — ask the landlord to explain anything unclear

Frequently Asked Questions

Should I hire an attorney to review my first commercial lease?
Yes. A commercial lease attorney charges $1,500-$3,000 for review and negotiation. On a $3,000/month lease with $150,000 in exposure, that's a 1% cost for eliminating catastrophic risk.
What are the most important clauses in a first commercial lease?
Personal guaranty scope and duration, restoration obligations, CAM charge caps, sublease and assignment rights, and early termination provisions. These five clauses create 80% of first-time tenant liability.
Is everything in a commercial lease negotiable?
Most provisions are negotiable, but leverage matters. In a tight market with high demand for the space, the landlord has more leverage. In a soft market with vacancy, you have more leverage.
What questions should I ask before signing my first commercial lease?
What are my total monthly costs including CAM? What is my personal liability under the guaranty? What must I restore at move-out? Can I sublease? What are the early exit options?
What is a tenant improvement allowance and how do I get one?
A TI allowance is landlord money contributed toward build-out. In exchange for a longer lease term (3-5 years), landlords often offer $20-50 per square foot in TI allowance. Always ask.