Commercial Lease Risk Report
+ Negotiation Brief

Prepared for: ████████████ LLC  ·  Confidential
Package: Standard Review Lease Type: QSR / Inline Retail Market: ██████████, ██ Delivered: 5 business days
Sample document — all identifying information has been redacted. Clause language, risk findings, and negotiation guidance are representative of actual deliverables.
Section 1 — Priority Risk Summary

Flagged provisions requiring attention before signing

Risk Provision Finding
High Rent Commencement Commencement tied to landlord’s delivery date with no outside date. Tenant begins paying rent even if delivery is delayed by landlord’s own construction. No rent abatement or termination right if delivery exceeds          days.
High Personal Guarantee Unlimited, unconditional personal guarantee with no burn-down provision. Guarantor remains liable for the full remaining term even after year     . No carve-out for force majeure or landlord default.
High Co-Tenancy / Anchor No co-tenancy protection. If anchor tenant (            ) vacates, tenant has no rent reduction right or termination option. Center occupancy could fall to     % with no remedy.
Med CAM Caps & Exclusions CAM charges uncapped. Administrative fee of     % on top of actual costs. Capital expenditures not excluded from CAM pool. Audit right limited to      months after statement delivery.
Med Assignment / Transfer Landlord consent required for any transfer including franchise system change. Consent standard is “sole discretion” — not limited to reasonable grounds. No deemed-approval if landlord fails to respond within      days.
Med Exclusivity Exclusivity clause covers only the exact trade name “            .” Does not protect against competing concepts under different names. Landlord retains right to lease to ghost kitchen operators.
Low Signage Rights Signage subject to landlord approval with no standard or timeline. Existing pylon signage rights not confirmed in writing. Recommend adding exhibit with approved signage specifications.
Section 2 — Annotated Clause Examples

Rent Commencement — as written vs. what it means for your business

Lease Language (§ 4.1)
“The Commencement Date shall be the earlier of (i) the date Tenant opens for business, or (ii) the date that is          days following the date Landlord delivers possession of the Premises to Tenant in the condition required herein. Tenant’s obligation to pay Base Rent shall commence on the Commencement Date regardless of whether Tenant has completed its build-out.”
Business Risk
This clause starts your rent clock before you open — and before you have any revenue. If your build-out takes longer than          days (common for QSR with hood, grease trap, and health department approvals), you will be paying full rent on a dark space. There is no rent abatement, no outside date, and no termination right if landlord’s delivery is late. A     -day delay at         /mo base rent equals            in rent paid before you serve a single customer.
Lease Language (§ 19.3 — Personal Guarantee)
“                     (‘Guarantor’) hereby unconditionally and irrevocably guarantees the full and timely performance of all obligations of Tenant under this Lease, including without limitation all monetary obligations, for the full Term and any extensions thereof.”
Business Risk
“Unconditional and irrevocable” means there are no outs. If the business closes in year 3 of a 10-year lease, you remain personally liable for 7 more years of rent. No burn-down, no cap, no carve-out for landlord default. This is the single highest-exposure clause in this lease.
Section 3 — Negotiation Brief

Recommended positions, trade-offs, and counsel flags

Term Action Guidance
Rent Commencement Push hard Request a free-rent period of          days from delivery, or tie commencement to your opening date. At minimum, negotiate an outside delivery date with rent abatement if landlord misses it. This is a standard ask in this market — landlords expect it.
Personal Guarantee Negotiate hard Propose a burn-down: guarantee reduces by     % per year of on-time performance, capped at          months of base rent after year     . If landlord won’t budge, request a carve-out for landlord default and force majeure events.
Co-Tenancy Request addition Add a co-tenancy clause: if anchor vacates and is not replaced within      months, tenant receives a rent reduction and a termination right after continued vacancy. This is a reasonable ask given the anchor dependency.
CAM Caps Negotiate Request an annual cap on controllable CAM increases. Exclude capital expenditures, management fees above     %, and costs recoverable from other tenants or insurance. Extend audit right to      months.
Assignment Negotiate Change consent standard to “not unreasonably withheld, conditioned, or delayed.” Add deemed-approval if landlord fails to respond within      business days. Carve out franchise system transfers and transfers to affiliates.
Exclusivity Strengthen Broaden exclusivity to cover “any food service concept primarily serving             ” rather than a specific trade name. Add ghost kitchen and delivery-only concepts to the exclusion. Define the protected radius.
Attorney flag: The personal guarantee and co-tenancy provisions in this lease carry material legal risk that goes beyond operational guidance. Before signing, have your attorney review the guarantee, co-tenancy, and force majeure clauses. LedgeBite provides business and operational guidance on lease risk — this report is not legal advice and does not substitute for attorney review.
LedgeBite  ·  Commercial Lease Risk Review  ·  Confidential — Sample / Redacted ledgebite.com