1. Term of Lease - Try for a shorter term with multiple options to extend.
2. Rent - Gather information regarding rental rates for comparable space and location to ensure reasonableness of rent.
3. Suitability for Tenant's Use - Review size, location, height, improvements, parking, access, utilities, zoning, condition of premises and needed improvements. Insist on a certificate of occupancy.
4. Improvements - Have a clear statement of what improvements will be made by landlord, what improvements can (must) be made by tenant and who owns the improvements.
5. Repairs and Maintenance - Have a clear statement of who is responsible for specific repair and maintenance items. Beware of the obligation to "replace" equipment. Consider an annual cap for tenant's repair obligations with landlord to pay any excess. Know your rights if the landlord fails to repair or replace.
6. Insurance - Review insurance provisions of the lease with your insurance agent to ensure the policy covers lease obligations. Tenant should carry full coverage for liability and for damage to tenant's property.
7. Allocation of Risk for Acts of Third Parties - Be clear on who is liable for acts of third parties on and off premises. Either landlord's or tenant's insurance should provide coverage for such acts.
8. Indemnities - Review carefully tenant's indemnities in the lease. These can severely affect a tenant in the future.
9. Taxes, Operating Expenses and Common Area Maintenance (CAM) Charges - Identify which of these items is included in the rent and which items the tenant must pay in addition to the rent.
10. Use of Premises - Include provisions that permit expansion of tenant's use of premises. Confirm that applicable zoning and land use regulations allow for a change of use. Also, agree as to who bears the risk of changes in zoning and land use regulations.
11. Condition of Premises -Conduct a thorough inspection of the premises and avoid responsibility for structural and environmental conditions. Require the landlord's assurances of the environmental condition of premises at beginning of lease, including absence of hazardous waste, asbestos, lead paint, mold and other such conditions.
12. Notice of Tenant Defaults - Require notices of defaults and ample opportunity to cure, including for failure to pay rent.
13. Compliance with Changes in Law - Do not accept an obligation to alter the premises to conform to changes in the law; e.g. the ADA.
14. Casualty to the Premises - Ensure you can vacate the premises in the event a casualty disrupts your ability to use space.
15. Title to the Premises - Obtain a title report to determine who holds title to the premises and if there are any lienholders. Obtain nondisturbance agreements from lienholders to avoid eviction in the event of a foreclosure.
16. Obligations at Lease Termination - Identify any expenses that tenant will incur when it vacates the space.
17. Guaranties - Avoid guaranties if possible. If not, limit them as to time and amount.
18. Signs - Determine if the landlord and/or the jurisdiction will permit signs and if so, under what conditions.
19. Assignment and Subleasing - Negotiate the right to assign and sublease the property subject to the landlord's right to raise only reasonable objections.
20. Holding Over - Determine your liability if you cannot vacate at end of term.
