An empty contemporary storefront with black window frames and a clean brick facade in morning light
AI-generated illustrative setting; not a specific business or property.

Confirm that the space fits the use

Check the proposed activity against the lease’s permitted-use clause and the applicable local requirements. Zoning, permits, occupancy, accessibility, and industry licensing can affect whether the business can open as planned. Do not rely entirely on a marketing description or an informal assurance. Ask who will investigate the requirements and how the lease addresses a delayed or unsuccessful approval process.

Calculate the full occupancy cost

Review base rent, increases, taxes, insurance charges, common-area expenses, utilities, deposits, and any other recurring payments. Ask for clarification of how shared costs are allocated and whether relevant supporting records can be reviewed. Model a higher-cost scenario as well as the opening-year budget. A favorable headline rent can be less attractive when repair responsibilities and pass-through expenses are included in the calculation.

Allocate repairs and improvements

Identify who maintains the roof, structure, heating and cooling, plumbing, and interior equipment. Record the space’s condition and obtain advice on necessary inspections. For improvements, address approvals, contractors, insurance, ownership, and restoration at the end of the lease. Clarify when rent starts if work is incomplete. The budget and timetable should reflect both the construction plan and the obligations in the signed document.

Understand guarantees and exit options

A personal guarantee can expose an owner even when the tenant is a limited-liability entity. Have counsel explain its scope, duration, and any proposed release conditions. Review assignment, subletting, renewal, relocation, and early termination provisions together. Ask what happens if the business is sold or needs a larger space. An exit clause is useful only if its conditions can realistically be satisfied.

Test the difficult scenarios

Discuss business interruption, casualty damage, landlord access, default notices, and the consequences of a late payment. Identify which promises must be written into the lease or an attached work letter. Keep all amendments and the final floor plan together. Local commercial leasing rules differ, so use a qualified local adviser to assess the proposed obligations before signing or paying a substantial nonrefundable amount.

Your preparation list

Bring the right information.

  • The draft lease, amendments, floor plan, and proposed use.
  • An occupancy budget including shared charges and likely repairs.
  • Inspection findings, improvement plans, and approval requirements.
  • Questions about guarantees, renewal, transfer, and early exit.

Reference: NYC Department of Small Business Services, commercial tenant guidance in Building Your Business in NYC. This checklist uses general lease-review questions; New York City rules do not apply nationwide. Obtain advice for the property’s jurisdiction.