This is a sample analysis of a commercial office lease. It shows exactly what PlainLaw produces for a real contract.
Overall Risk
High Risk
Top issues to negotiate:
- Unlimited Personal Guarantee Required (Critical)
- CAM Charges Have No Annual Cap (High)
- Holdover Penalty Is 200% of Base Rent (High)
Resolving these issues could reduce your risk from High Risk to Moderate Risk.
This commercial office lease is materially landlord-favorable and presents significant financial exposure for a tenant.
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The unlimited personal guarantee creates direct personal liability with no cap or burn-down provision.
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CAM charges have no annual increase cap, making true monthly occupancy cost unpredictable over a 5-year term.
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The absence of rent abatement protection means you could owe full rent on unusable space following a casualty event.
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The 200% holdover penalty, no-sublease right without sole-discretion consent, and a unilateral relocation right further limit flexibility and exit options.
Negotiating these provisions before execution is strongly recommended.
Found in: Section 24 (Personal Guarantee)
Found in: Section 9 (Operating Expenses)
Found in: Section 18 (Holdover)
Found in: Section 14 (Casualty and Destruction)
| Term | Details |
|---|---|
Leased Space | |
Lease Term | 60 months (January 1, 2026 – December 31, 2030) |
Base Rent | |
Lease Type | Modified Gross |
Rent Escalation | 5% per year after Year 2 |
Operating Expenses | Tenant's pro-rata share; no annual cap |
Renewal Options | |
Security Deposit | $14,400 (2 months' rent) |
Early Termination | No tenant termination right |
Permitted Use | General office use only |
Personal Guarantee | Unlimited, unconditional personal guarantee required |
Cap the personal guarantee at 12–18 months of base rent, or request a burn-down provision that eliminates the guarantee after satisfactory payment for 24–36 months.
Add a 3–5% annual cap on CAM charge increases to protect against runaway pass-through costs. Also request an audit right so you can verify the landlord's operating expense calculations.
Negotiate a rent abatement clause: if 25% or more of the premises is rendered untenantable by casualty, rent should abate proportionally until the space is restored or the lease terminates.
Reduce the holdover penalty to 125–150% of then-current base rent, and add a 30-day cure period before the holdover rate kicks in.
Require 24 hours' prior written notice (except genuine emergencies) before any landlord entry, and limit the relocation right to circumstances where the landlord is demolishing or substantially renovating the building.
Consider Professional Review
This contract contains provisions that may warrant review by a commercial real estate attorney. A professional can help you understand your exposure, negotiate more favorable terms, and ensure you don’t sign something you’ll regret.
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Disclaimer: This sample analysis is for illustrative purposes only and does not constitute legal advice. The contract details shown are representative of a typical commercial lease and are not drawn from any specific real agreement. PlainLaw recommends consulting with a qualified attorney before signing or negotiating any contract.