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negotiating commercial lease terms

October 8, 2025 • General

A commercial lease isn’t just paperwork—it’s the backbone of your investment. The terms you agree to will shape how your property performs for years to come, so taking the time to negotiate carefully is critical. It’s not just about the rent amount; it’s about protecting your property, your income, and your long-term goals.


Don’t Just Focus on Rent

Yes, rent is important. But investors who only focus on the monthly number often overlook the fine print that protects (or hurts) their property value. Some of the most important points to nail down include:

  • Lease Length – Do you want the security of a long-term tenant, or flexibility to adjust rents in a few years?
  • Maintenance Responsibilities – Be clear on who pays for what: HVAC, roof repairs, and common area upkeep are big items that can surprise owners if not spelled out.
  • Renewal Options – Tenants often ask for renewal rights. Make sure the terms allow you to adjust rents to market rates down the road.

Protect Yourself with Smart Clauses

Adding the right protections into the lease can make all the difference. Examples include:

  • Rent Escalations – Built-in increases to keep pace with inflation or market trends.
  • Use Restrictions – Prevents tenants from operating in ways that damage your property or clash with other tenants.
  • Default Remedies – Outlines what happens if a tenant stops paying or breaks the agreement.

Think About the Bigger Picture

A lease doesn’t exist in a vacuum. The terms you agree to affect not only your relationship with one tenant but the way the rest of your shopping center or building functions. In practice, I’ve seen some tenants prefer being near others—cell phone providers often like clustering together, and loan companies sometimes do the same. A well-thought-out lease ensures the tenant mix works together instead of against each other.


Use Professionals to Your Advantage

Commercial leases are complex documents, and every word matters. Having a broker and an attorney in your corner ensures you’re not missing hidden risks or vague language that could cost you later. The upfront effort pays off in long-term stability and property value.


Final Thoughts

Negotiating a lease is about more than getting a tenant in the door—it’s about protecting your investment for the long run. Clear terms, smart clauses, and a focus on the bigger picture will help ensure your property performs the way you want it to.

At Wellborn Real Estate, we help property owners across Amarillo and the Texas Panhandle navigate lease negotiations with confidence, ensuring deals are fair, profitable, and built to last.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as financial, legal, or real estate advice. Every real estate transaction is unique, and readers are encouraged to seek professional advice tailored to their individual circumstances. We strive to keep the information accurate and up-to-date, but we make no warranties or guarantees regarding the completeness, accuracy, or reliability of the content. For specific guidance, please consult a licensed real estate professional or legal advisor.
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