By Alex Mehdipour, Mehdipour Law, PC
Los Angeles Commercial Lease Attorney
Signing a commercial lease is one of the most important decisions a business owner will make. Whether you’re opening a restaurant in West Hollywood, expanding a medical practice in Beverly Hills, or securing office space in Century City, the lease can lock you into years of obligations that significantly impact your bottom line.
At Mehdipour Law, we have reviewed, drafted, and negotiated hundreds of commercial leases for tenants and landlords across Los Angeles. Here’s why a thorough professional review is essential—and what red flags to watch for.
Commercial Leases Are Not Like Residential Ones
California law provides far more protections for residential tenants than for commercial tenants. In a commercial lease, “freedom of contract” largely rules. This means landlords can (and often do) include one-sided provisions that shift almost all risk to you, the tenant.
Key areas that require close scrutiny:
- Rent Structure & Increases: Is it triple net (NNN)? Are there caps on operating expense pass-throughs? Unexpected CAM (Common Area Maintenance) charges can add tens of thousands annually.
- Personal Guarantees: Many landlords require owners to personally guarantee the lease. This can put your home and personal assets at risk.
- Assignment & Subletting: Business plans change. Ensure you have reasonable rights to assign the lease or sublet without excessive landlord consent or profit-sharing clauses.
- Maintenance & Repairs: Who is responsible for the roof, HVAC, plumbing, or structural issues? Ambiguous language here leads to expensive disputes.
- Insurance & Indemnification: Are the insurance requirements realistic and cost-effective? Does the indemnity clause unfairly expose you to liability?
- Default & Termination Rights: Look for strict notice provisions, cure periods, and landlord remedies that could allow eviction or accelerated rent with little warning.
- Relocation & Expansion Rights: Will the landlord be able to move you to a less desirable space? Do you have options for expansion?
- ADA Compliance & Alterations: In Los Angeles, this is critical. Who bears responsibility for accessibility upgrades?
Hidden Costs That Can Sink a Business
We often see tenants surprised by:
- Un-capped property tax increases after a sale
- Parking charges or validation requirements
- Signage restrictions and associated fees
- Exclusive use clauses that limit your business operations
- Early termination penalties that are disproportionately high
A skilled attorney can negotiate caps, exclusions, and fairer terms before you sign.
Negotiation Power Exists—If You Use It
Many business owners review the lease themselves or rely solely on their broker. While brokers are helpful, they are not licensed attorneys and cannot provide legal advice. An experienced commercial lease lawyer can identify leverage points and often secure concessions that save far more than the legal fees.
We regularly help:
- First-time franchisees and restaurant owners
- Doctors and healthcare providers leasing medical offices
- Retail and service businesses in high-demand LA neighborhoods
- Landlords seeking balanced, enforceable leases
Flat-Fee Lease Review Options
At Mehdipour Law, we offer flat-fee pricing for many lease review and negotiation services so you know the exact cost upfront—no surprises. Whether it’s a quick review of a landlord’s proposed lease or full negotiation support, we tailor our approach to your needs and timeline.
Protect Your Business Before You Sign
Don’t wait until problems arise. A few hours of legal review upfront can prevent years of headaches and unnecessary expenses.
If you’re considering a new lease, renewing an existing one, or dealing with a lease dispute in the Los Angeles area, contact us today for a consultation.
Call 310-556-9692 or email Alex@mehdlaw.com to schedule your commercial lease review.
Mehdipour Law, PC serves clients throughout Los Angeles County, including Century City, Beverly Hills, Santa Monica, Calabasas, and beyond.
This article is for informational purposes only and does not constitute legal advice.
