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Guide

Commercial Lease Clauses Tenants Should Negotiate in California

By Alessandro G. Assanti, Esq. · Updated October 2026

Most commercial leases start on the landlord's form, but many terms can be negotiated, especially before signing.

Operating expenses (CAM)

Ask for a clear definition, exclusions for capital items and landlord overhead, a cap on controllable expenses, and audit rights.

Repairs and maintenance

Clarify who is responsible for roof, structure, and HVAC, and whether major replacements are amortized.

Assignment and subletting

Seek a reasonableness standard for consent and the right to transfer the lease on a sale of the business.

Renewal options

Define how renewal rent is set and the window to exercise the option. Missing the window can forfeit it.

Personal guaranty

Negotiate a cap, a burn-off after a period of timely payment, and release on an approved assignment.

Default and cure

Look for written notice and a reasonable cure period before the landlord can exercise remedies.

Related: commercial lease review · commercial lease disputes

General information about California law, not legal advice. Reading this guide does not create an attorney-client relationship.

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