73%

of commercial leases contain at least one clause that favors the landlord

// NAIOP Commercial Real Estate Survey, 2024

$42K

average hidden cost per lease over the full term — buried in CAM caps, escalation floors, and holdover penalties

// Tenant Advisory Group, Aggregate Case Data

11min

median time a business owner spends reviewing a lease before signing

// Internal intake survey, 2023–2025

You read the highlights.
We read the lease.

Commercial leases are written by landlord attorneys. We level the table — reviewing, redlining, and negotiating every clause before you put pen to paper.

RestaurateursFranchise OperatorsStartup FoundersRetail Tenants

Clause handles

CAM escalation caps & expense exclusions
Personal guarantee scope & burn-down terms
Demolition, co-tenancy & force majeure riders
Exclusivity provisions & permitted-use definitions
CAM Escalation
Personal Guarantee
Demolition Clause
Exclusivity Gap
Holdover Penalty
Co-Tenancy Trigger
Assignment Restriction
Permitted Use Trap
Rent Abatement Limit
Force Majeure Carveout
HVAC Responsibility
Signage Restriction
CAM Escalation
Personal Guarantee
Demolition Clause
Exclusivity Gap
Holdover Penalty
Co-Tenancy Trigger
Assignment Restriction
Permitted Use Trap
Rent Abatement Limit
Force Majeure Carveout
HVAC Responsibility
Signage Restriction

The lease is 52 pages.
The trap is on page 47.

01

The CAM Escalation Trap

Uncapped CAM with a blank exhibit is an open-ended obligation. The landlord can pass through roof replacements, HVAC upgrades, and management fees — and the tenant has no ceiling.

Tenant shall pay Tenant's Proportionate Share of all
Operating Costs incurred by Landlord in connection with
the operation, maintenance, repair, replacement, and
management of the Building and Project, including but
not limited to capital expenditures amortized over their
useful life as determined solely by Landlord...

Operating Costs shall not be subject to any cap or
limitation unless expressly set forth in Exhibit C.
(Exhibit C: [intentionally left blank])

// Names and amounts altered for confidentiality

What we changed. What it cost them. What they kept.

Redlined

"as determined solely by Landlord" → "as mutually agreed in writing"

Added

3% annual CAM increase cap, admin fee capped at 5%, capital expenditures excluded

Replaced

Blank Exhibit C with a defined list of includable and excludable expenses

Negotiated

Right to audit CAM reconciliation within 12 months of year-end statement

$28,400

saved over 5-year term vs. original uncapped structure

02

The Unlimited Personal Guarantee

An unlimited, undischargeable personal guarantee means the founder's personal assets — home, savings, everything — back the entire lease. A single bad year can follow them for decades.

As a material inducement to Landlord to enter into this
Lease, Guarantor unconditionally and irrevocably
guarantees to Landlord the full and prompt payment
and performance of all obligations of Tenant under
this Lease, including all renewals, modifications,
and extensions thereof, without limitation as to
amount, duration, or the nature of such obligations.

This Guarantee shall survive any bankruptcy filing
by Tenant and shall not be dischargeable...

// Names and amounts altered for confidentiality

What we changed. What it cost them. What they kept.

Redlined

"without limitation" → capped at 12 months' base rent ($186,000)

Added

Burn-down provision: guarantee reduces by 20% each year of on-time payment

Added

Good-guy clause: guarantee terminates 60 days after written notice + surrender

Removed

Bankruptcy non-dischargeability language (not enforceable; removed for clarity)

Unlimited → $186K

personal exposure reduced from uncapped to 12-month cap with annual burn-down

03

The Hidden Demolition Rider

Buried on page 47 of the renewal rider: the landlord can end the lease in 120 days for any reason they call "redevelopment" — and owe the tenant nothing. For a restaurant that just spent $400K on build-out, this is catastrophic.

Notwithstanding anything to the contrary herein,
Landlord reserves the right to terminate this Lease
upon one hundred twenty (120) days' written notice
in the event Landlord, in its sole discretion,
determines to demolish, substantially renovate,
or redevelop the Premises or any portion of the
Building, without liability to Tenant for any
damages, lost profits, or relocation costs.

— Renewal Rider, Section 3(d), Page 47 of 52 —

// Names and amounts altered for confidentiality

What we changed. What it cost them. What they kept.

Redlined

"in its sole discretion" → requires bona fide building permit and 18-month notice minimum

Added

Relocation assistance: 6 months' base rent + documented FF&E replacement costs

Added

Recapture right: tenant can terminate without penalty if demolition notice is issued

Negotiated

Clause removed entirely from renewal term; applies only to initial term if at all

$400K+

build-out investment protected; demolition clause removed from renewal term

The Lease Red-Flag Checklist

17 clause categories every business owner should verify before signing a commercial lease. Written for non-lawyers. Referenced by attorneys.

CAM caps, exclusions, and audit rights
Personal guarantee scope and burn-down terms
Demolition, relocation, and termination riders
Permitted use definitions and exclusivity gaps
Holdover rent penalties (often 150–200% of base)
Assignment and subletting restrictions
Renewal option mechanics and notice windows
14 more red-flag clause categories

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You signed on your terms.
Not theirs.

Every client who worked with Clause walked into that conference room with a redlined document. They knew exactly what changed, why it changed, and what it was worth. That's the only way to sign.

100%

of leases reviewed had at least one flagged clause

$2.4M

in aggregate tenant savings across 2024–2025 cases

8 days

average turnaround from intake to redlined draft

0

clients who reported landlord refusal to negotiate redlines

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