Whether your business is just getting started or you are expanding and opening a new location, finding the right commercial real estate property can be a challenging process. Depending on the local real estate market, it may take just a few weeks or up to several months to find the right property for your business. Once you find a commercial space that works for you, it’s understandable that you would want to sign the commercial lease agreement as quickly as possible so you can start moving into the space and preparing to open your doors for business. However, rushing through the commercial lease review process and neglecting to fully understand or negotiate the terms can lead to significant and costly legal woes later on. Commercial leases that are inflexible, poorly worded, or that insufficiently protect your best interests can jeopardize the success of your business. 

When you partner with a highly experienced and trusted Nevada commercial lease attorney, you can rest assured that your best interests will remain protected. Your attorney will help you review the terms and conditions of the commercial lease and attempt to negotiate more favorable terms to minimize legal disputes and complications later on. With a clear commercial lease in place to safeguard this considerable investment, you will be free to focus on what matters most—running your business. Let’s take a closer look at some of the key considerations that a business owner should know before signing a commercial lease in Nevada.

What Makes a Commercial Lease Different From a Residential Lease?

Generally speaking, commercial leases offer fewer protections for tenants in Nevada than residential leases do. However, commercial leases tend to provide more room for negotiation, although these back-and-forth negotiations can be complex to navigate without the guidance of an experienced and knowledgeable commercial real estate lawyer. Commercial leases also tend to have longer durations and require higher financial commitments from tenants, which means that taking the time to carefully review and assess the specific terms and conditions is essential to ensure that you understand your obligations and rights. 

Key Clauses to Review in a Nevada Commercial Lease

While it’s important to review every section of a commercial lease with care and scrutiny, there are a few key clauses to focus on so that the best interests of you and your business are sufficiently protected. Here are just some of the key clauses to review before you sign a commercial lease in Nevada.

Rent and Rent Increases

Pay particular attention to how the rent is calculated to understand what costs are included in this figure. It’s important to look beyond the base rent and consider other costs like property taxes, insurance, and Common Area Maintenance (CAM) fees, since these can rapidly add up and become a hefty monthly obligation. Additionally, consider how and when rent increases will be determined and communicated over the term of the lease. 

Term and Renewal Options

Review the commercial lease to determine how long the term is and whether the lease is automatically renewed once the term of the lease is up. It’s also essential to scrutinize renewal procedures, notice requirements, and potential rent adjustments during renewal periods. 

Maintenance and Repair Obligations

Review the lease to understand which party is responsible for maintaining and repairing different components of the property. Maintenance clauses typically specify whether the landlord or tenant must handle routine maintenance, HVAC servicing, structural repairs, and common area upkeep. Clarifying these responsibilities upfront can prevent costly disputes later. If any provisions are unclear, a dedicated and experienced Nevada commercial real estate lawyer can help interpret the terms and negotiate more favorable conditions.

Use Clauses and Exclusivity

Another section to look out for when reviewing a commercial lease concerns the property’s permitted use and restrictions. You want to fully understand any noise restrictions, zoning considerations, or other limitations on how the space is used.  In multi-tenant properties, check whether the lease grants you exclusive use rights—such as preventing competing businesses from operating nearby—which can be crucial for protecting your business interests. 

Subleasing and Assignment

Review the lease to determine whether you’re allowed to sublease the space or assign the lease to another party. These provisions outline the landlord’s right to approve or deny such requests and may include specific conditions or fees. Pay close attention to whether you remain liable under the lease after assignment and whether the landlord has the right to terminate—or “recapture”—the space instead of approving a transfer.

Security Deposits and Personal Liability

Make sure you understand the financial protections built into the lease. Review how the security deposit is handled and under what conditions it’s refunded. Also, determine whether you’re being asked to personally guarantee the lease, which could make you individually responsible for rent or other obligations.  If you have questions about these provisions, a seasoned and trusted commercial lease lawyer can provide the clear, effective guidance you need.   

Common Pitfalls to Avoid When Signing a Commercial Lease in Nevada

Some of the most common mistakes that businesses make when rushing through the process of signing a commercial lease include signing without legal guidance, relying solely on the landlord’s broker, overlooking zoning or licensing compatibility, and agreeing to unfavorable default provisions. When you enlist the guidance and support of a top-tier Nevada commercial real estate attorney, you can trust that your best interests will be safeguarded at every opportunity so that you can face the future with greater confidence.

FAQs About Commercial Lease Negotiations in Nevada

As you approach the process of reviewing a commercial real estate lease agreement, several questions may arise. Here are just a few of the most frequently asked questions (FAQs) about commercial leases to get you started.

Can I Negotiate the Terms of a Commercial Lease in Nevada?

Yes. Unlike residential leases, commercial leases are highly negotiable. It’s common for business tenants to negotiate terms like rent increases, repair obligations, CAM fees, and more. 

What Happens if I Break a Commercial Lease Early in Nevada?

You could be held liable for unpaid rent and damages unless your lease contains an early termination clause or you negotiate an exit with the landlord.

Do I Need an Attorney to Review My Lease Before Signing?

Technically, no—but it’s highly recommended. Commercial leases often include complex provisions that may not favor the tenant unless the terms are negotiated or clarified.

Get Started With a Trusted Nevada Business Lease Lawyer Today

When it comes to protecting your business, you deserve top-quality legal services that are tailored to address your specific needs and goals. At Reisman Sorokac, we are committed to providing you with the most efficient, cost-effective solution that serves the best interests of you and your business. Please give us a call today at (702) 727-6258 to get started with an experienced and dedicated Nevada commercial lease and business law attorney.