Reviewing / negotiating a restaurant (or retail) lease?

December 11, 2025

by a searcher from University of Pennsylvania - The Wharton School in Greenwich, CT, USA

Wondering if anyone has a good guide for going through the lease review and negotiation process. Would also be curious if folks have had good experiences using AI to help with this process (and which product is ideally suited for it).

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Reply by a searcher
from Emory University in Tucson, AZ, USA

Besides engaging a quality commercial real estate attorney: If you are not familiar with going rents, engage a commercial broker for a market analysis including specific comps to the property you are leasing. A quality broker will also understand how aggressive local landlords are with terms, allowances, etc. Be clear on tenant responsibilities, especially in NNN leases where you may be responsible for replacing mechanical equipment (HVAC) thus you need to have an understanding of current property condition. If you bring special needs to the "exterior" of the property (grease disposal container, carbonation tank, dedicated dumpsters, etc.) make sure it's covered. You’ll want to validate property taxes, common area maintenance charges, marketing, etc. including frequency of billing, any surcharges applied by the landlord, etc. – these add up quickly to the base rent. Use schedules to make it absolutely clear on minimum rent due as well as amortization of the buildout allowance, if applicable. Be clear on what precisely percentage rent applies if you have off-site revenue. For less than 10 year leases, incorporate a renewal clause that indexes the rent increase.

Reply by a professional
from Dallas Baptist University in Dallas, TX, USA

Toby, lease negotiation is a classic deal-killer. I'd lean on a commercial real estate attorney who specializes in restaurant/retail (they've seen the 10 poison pills). On the AI front: It's great for flagging clauses, but the real value is having a standardized Due Diligence Checklist before you even get to the lease. I once saw a buyer lose $150k in margin in the first 60 days because they negotiated the rent aggressively but ignored the seller's chaotic inventory and exception system.

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