Your Actual Exposure: $200,000
A $4,000/mo consumer protection lease doesn't create $4,000/mo in liability. It creates $200,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.
Where $200,000 Comes From
Remaining Rent$120,000
Personal Guaranty$96,000
Restoration$25,000
CAM Charges$24,000
Legal Fees$15,000
Holdover$24,000
Total Exposure$200,000
What Most People Miss
The false economy. Business owners spend $15,000 on branding and $25,000 on furniture before opening. Then save $2,000 by not reviewing the lease — which contains $200,000 in unreviewed exposure.
Key Risks in This Scenario
- Restoration clause not caught — $25,000 surprise at move-out
- Unlimited personal guaranty accepted when 18-month cap was available
- CAM reconciliation trap not negotiated — $8,000 annual surprise bill
How to Reduce Your Exposure
- Hire a tenant's real estate attorney for every commercial lease over 1 year
- At minimum, get a flat-fee lease review ($500-$1,500) from a commercial real estate attorney
Frequently Asked Questions
- How much does commercial lease legal review cost?
- A flat-fee review from a commercial real estate attorney runs $500-$1,500. Full representation including negotiation runs $1,500-$5,000. On a $4,000/month lease with $200,000 in exposure, this is a 0.75-2.5% cost for professional representation.
- What does a commercial lease attorney actually do?
- Reviews all provisions for hidden obligations (restoration, CAM, personal guaranty), identifies market-standard terms vs. aggressive ones, negotiates more favorable terms on your behalf, and explains what you're agreeing to before you sign.
- Can I use an online template review service instead of an attorney?
- Template review services can flag common issues but can't negotiate on your behalf or advise on local market standards. For leases over $2,500/month, invest in a real attorney — the exposure justifies it.
- Should the landlord's attorney review the lease on my behalf?
- Absolutely not. The landlord's attorney represents the landlord's interests, not yours. A landlord attorney reviewing a lease 'for both parties' is a conflict of interest that will not protect you.
- What should I ask a lease attorney before hiring them?
- Do you represent tenants or landlords? (Tenant-side experience is different from landlord-side.) What is your flat fee for review and negotiation? What specific provisions will you focus on? What are the most common traps in this type of lease in this market?