What to Consider Before Signing a Commercial Real Estate Lease in Alabama

Leasing a new space is exciting, but it’s easy to miss important details when you’re focused on opening the doors. This guide breaks down what to check, ask, and confirm before you sign a lease so there are no surprises later.

Below, you’ll find a preview of the 15 essentials every tenant should review. You can also download the full checklist to keep on hand as you tour spaces or prepare for your next move.

Download the Full Checklist

Put Your 15-Point Checklist to Work

These steps help you understand your agreement, protect your investment, and make sure the space truly fits your business.

Understand Lease Types

Know whether your lease is net, gross, or triple net, and what’s included in your rent. This determines your total monthly cost and who pays for what, from maintenance to property taxes.

Review the Lease Term

Check your start and end dates and make sure the lease length matches your business plan. Flexibility matters as shorter terms can help new businesses, while longer ones offer stability.

Assess Financial Obligations

Clarify rent, escalation clauses, and additional expenses like CAM fees, utilities, or insurance. Knowing your full financial picture upfront keeps your budget on track.

Inspect Tenant Improvements and Allowances

Find out what updates or build-outs are allowed and who covers the cost. A clear understanding of tenant improvement allowances (TI) can save money and prevent disputes.

Evaluate the Space and Usability

Make sure the square footage and layout suit your workflow and growth plans. A space that looks right on paper may not function right in practice, so tour it with your daily operations in mind.

Understand Maintenance & Repair Responsibilities

Clarify who’s responsible for repairs and maintenance. The small details, like who handles HVAC or emergency issues, can have a big impact down the line.

Review Renewal Options and Terms

Check if your lease includes renewal rights or rent adjustments for extensions. Knowing your renewal options gives you room to grow without relocating.

Check Subleasing and Assignment Rules

Understand if you’re allowed to sublease or transfer your lease and under what conditions. Flexibility here can protect your business if circumstances change.

Consider Location and Accessibility

Look at how convenient the location is for both employees and customers. Access to parking, public transportation, and major roads can make or break a space.

Examine Building Amenities and Services

Take note of available amenities (and their quality) like parking, security, and cleaning services. A great building adds value beyond square footage.

Confirm Zoning and Use Permissions

Make sure the property is zoned for your business type. Zoning rules can affect everything from signage to operational hours, so double-check before you sign.

Negotiate Deposit and Upfront Costs

Ask about the security deposit and any prepaid rent. These terms are often negotiable, especially for long-term tenants or quick occupancy.

Review Termination Clauses

Understand how to exit your lease if you need to. Know what penalties apply and how much notice is required to avoid unexpected costs.

Legal and Professional Review

Before signing, have a real estate attorney or professional review the lease. A quick legal check can catch issues you might overlook.

Document the Condition of the Property

Do a walkthrough with the landlord and take photos of any existing damage. Having documentation protects you from being held responsible later.

Want the Full Checklist?

This is just a preview. The full guide includes a downloadable version of all 15 steps, perfect for keeping on your phone or printing for your next property tour. Use it as your go-to tool to make leasing simpler, clearer, and stress-free.

Get the Complete Checklist

Keep Learning About Commercial Leasing

Every great move starts with preparation. Explore our other resources to better understand lease structures and real estate terms before you sign.

Navigating Commercial Leases Common Commercial Real Estate Terms

You’ve Checked the Boxes, Now Let’s Find Your Space

Once your checklist is complete, Right Space Commercial can help you put it into action—finding a space that fits your business goals and handling the details that come next. We’ll walk you through every step, from touring properties to signing the lease, making the transition into your new space simple, efficient, and stress-free.