Home › About The Firm › Blog › What Are the Hidden Legal Risks in Commercial Leases?
Published March 31st, 2025 by Klafehn, Heise & Johnson P.L.L.C
Leasing commercial property can be an exciting step for business owners, whether they are starting a new venture or expanding their operations. However, commercial leases come with complex legal terms that, if overlooked, can create serious financial and legal risks.
Before signing a lease, it’s essential to understand hidden legal risks that could affect your business. At Klafehn, Heise & Johnson P.L.L.C., we help businesses throughout Rochester, Brockport, and Monroe County avoid costly lease mistakes by reviewing agreements and negotiating favorable terms.
Here’s what you need to know about the hidden legal risks in commercial leases and how to protect your business.
Unlike residential leases, which often have standard tenant protections, commercial leases offer little protection for business tenants. Property owners and landlords have significant flexibility in structuring lease agreements, often favoring their financial interests.
Without proper legal review, business tenants may unknowingly agree to terms that could put them at a disadvantage—including unexpected costs, strict obligations, and difficult lease termination conditions.
If you're signing a commercial lease, consult an attorney first to protect your business from unnecessary risks.
Many business owners focus on rent and lease duration but overlook key legal clauses that can have a major impact on their operations. Here are some hidden risks to watch out for:
KHJ Tip: Before signing, confirm how often rent increases, by how much, and whether increases are negotiable.
KHJ Tip: Ensure the lease clearly states who is responsible for repairs and maintenance to avoid surprise expenses.
KHJ Tip: Make sure the lease gives flexibility for your business’s future growth and changes.
KHJ Tip: Negotiate limited personal liability or alternatives, such as a corporate guarantee.
KHJ Tip: Request detailed CAM fee breakdowns and cap increases to avoid excessive costs.
KHJ Tip: Negotiate a reasonable exit clause in case of unforeseen business changes.
To avoid these hidden legal risks, it’s critical to carefully review your lease before signing. Here’s how to safeguard your business:
Schedule a lease review today.
KHJ Tip: Ensure the lease includes a grace period and limits landlord penalties for minor breaches.
Signing a lease is a major financial commitment. Before finalizing any agreement, take these steps to protect your business:
Klafehn, Heise & Johnson P.L.L.C. is here to help Rochester and Brockport business owners secure fair commercial lease agreements.
A poorly written lease can cost your business thousands of dollars in hidden fees, unexpected rent hikes, or repair costs. Before signing any lease in Rochester, Monroe County, or Brockport, ensure you fully understand your legal rights.
At Klafehn, Heise & Johnson P.L.L.C., we provide commercial lease review, negotiation, and business legal services to protect business owners from unfair agreements. Don't sign a lease without understanding your rights—let us help.
Contact us today to schedule a lease review and ensure your business is legally protected.
This article provides general information about commercial leases in New York State and should not be construed as legal advice. Each business’s situation is unique, and lease agreements may vary. For personalized legal guidance, contact Klafehn, Heise & Johnson P.L.L.C. in Rochester, NY. You can reach us here. Portions of this article are considered ATTORNEY ADVERTISING under the New York State Unified Court System Rules of Professional Conduct (22 NYCRR Part 1200). Prior results do not guarantee a similar outcome.
When buying a home or property in Rochester or the surrounding areas of Monroe, Orleans, and Genesee Counties, the purchase agreement is one of the most important documents you’ll sign. This contract sets the terms for your real estate transaction and outlines everything from the purchase price to ...
When buying or selling property in Western New York—including Rochester, Brockport, and communities in Monroe, Orleans, and Genesee Counties—one of the most important steps is the title search. This process confirms who legally owns the property and whether any claims, liens, or restrictions exist. Unfortunately, title problems are ...
Refinancing your home can be a smart move—whether you’re lowering your interest rate, tapping equity for renovations, or consolidating debt. But many homeowners in Rochester and across Monroe, Orleans, and Genesee Counties ask the same question: Do I really need a real estate attorney to refinance my mortgage? ...
Copyright © 2025 Klafehn, Heise & Johnson P.L.L.C. All rights reserved.
Portions of this website are considered ATTORNEY ADVERTISING under the New York State Unified Court System Rules of Professional Conduct (22 NYCRR Part 1200). Prior results do not guarantee a similar outcome. We reserve all intellectual property rights in any proprietary content contained in this website.
Your cart is empty.