Questions to Ask Before Signing a Commercial Lease
Before signing a commercial lease, you should have a clear understanding of what the property will cost, what you're responsible for, what you're allowed to do with the space, and what happens if your business needs change.
The best way to avoid surprises is to ask questions before you sign.
If you're considering commercial space in Bloomington-Normal, use these commercial lease questions when talking with the property owner or reviewing your lease.
1. What Is Included in the Monthly Rent?
Start with the most obvious question, but don't stop at the monthly rent listed for the property.
Ask exactly what your rent includes and what you'll pay separately.
Additional expenses could include:
Common area maintenance (CAM)
Property taxes
Insurance
Utilities
Trash removal
Landscaping
Snow removal
Parking
Building maintenance
Knowing the total cost makes it much easier to compare different commercial properties in Bloomington, IL and Normal, IL.
2. How Will the Rent Change During the Lease?
Don't assume the rent you pay during the first year will stay the same.
Ask whether the lease includes scheduled rent increases and how those increases are calculated.
You'll want to know:
When the rent increases
How much it increases
Whether increases are a fixed amount or percentage
Whether operating expenses can increase separately
For a multi-year lease, look at what you'll be paying during the final year, not just the first.
3. How Long Is the Lease?
Make sure the length of the lease works with your plans for the business.
A longer lease can provide stability, but it also means making a longer commitment. A shorter lease gives you more flexibility but may mean you'll have to make another decision about your location sooner.
Ask about the initial lease term as well as any options to renew.
4. Do I Have an Option to Renew?
If the property works well for your business, you may want to stay after the original lease expires.
Ask:
Does the lease include a renewal option?
How long is the renewal period?
How far in advance do I need to give notice?
How will rent be determined during the renewal?
Are there any conditions for exercising the renewal option?
This can be especially important if you're investing significant money into improving the property.
5. What Am I Responsible for Maintaining?
Maintenance responsibilities can vary quite a bit from one commercial lease to another.
Ask who is responsible for:
HVAC systems
Plumbing
Electrical systems
Doors and windows
Roof repairs
Parking lots
Landscaping
Snow and ice removal
Interior repairs
Exterior maintenance
For a business leasing commercial property in Central Illinois, things like heating, snow removal, and parking lot maintenance can become significant expenses. You should know who is responsible before there's a problem.
6. Is My Business Allowed to Operate Here?
Make sure both the lease and the property allow your intended business use.
Ask the property owner how the space can be used and whether there are any restrictions that could affect your business.
Depending on what you do, you may also need to consider:
Local zoning
Customer traffic
Outdoor storage
Food preparation
Manufacturing
Automotive work
Equipment use
Hours of operation
Noise
Deliveries
If you're looking at commercial space in Bloomington, IL or Normal, IL, don't assume a property will work for your business simply because the size and layout look right.
7. Can I Make Changes to the Property?
Most businesses need to make at least a few changes before moving into a new commercial space.
Ask what you're allowed to change and which improvements require approval.
That might include:
Painting
Flooring
Interior walls
Electrical work
Plumbing
Lighting
Equipment installation
Exterior signage
You should also ask who pays for the improvements and whether the property owner offers any tenant improvement allowance.
8. What Happens to My Improvements When I Leave?
This is easy to overlook when you're getting ready to move in.
Ask whether improvements stay with the property when your lease ends or whether you're responsible for removing them.
Depending on the lease, you could be required to remove equipment, walls, fixtures, or signage and restore portions of the property to their original condition.
If you're spending a significant amount of money improving the space, understand your responsibilities on both ends of the lease.
9. What Parking Comes With the Property?
Parking can become a problem quickly if you don't have enough of it.
Ask:
How many parking spaces are available?
Are spaces dedicated or shared?
Is there separate customer parking?
Can company vehicles remain overnight?
Is there room for larger vehicles?
Who is responsible for parking lot maintenance and snow removal?
For businesses with regular customer traffic or multiple employees, parking should be part of the property decision from the beginning.
10. What Kind of Signage Can I Have?
If customers need to find your business, signage matters.
Ask whether you're allowed to install:
Building signage
Door or window signage
Monument signage
Roadside signage
Directional signage
You should also find out whether there are restrictions on size, placement, lighting, or design.
For a customer-facing business in Bloomington-Normal, visibility from the street may be an important part of choosing the right location.
11. How Do Deliveries and Building Access Work?
Think about how you'll actually use the property every day.
Ask about:
Loading areas
Overhead or roll-up doors
Delivery access
After-hours access
Building security
Shared entrances
Access for larger trucks
Restrictions on delivery times
These questions can be particularly important if you're looking at warehouse or flex space where deliveries are part of your regular operation.
12. What Insurance Am I Required to Carry?
Commercial leases often include specific insurance requirements.
Ask:
What types of insurance are required?
What coverage limits do I need?
Does the property owner need to be listed as an additional insured?
When do I need to provide proof of coverage?
It's worth discussing the requirements with your insurance provider before signing so you know what the coverage will cost.
13. Does the Lease Require a Personal Guarantee?
Some commercial leases require the business owner to personally guarantee some or all of the lease obligations.
Ask whether a personal guarantee is required and what it covers.
Because a personal guarantee can create obligations beyond the business itself, this is one of the lease terms you may want an attorney to review before you sign.
14. Can I Sublease or Transfer the Lease?
Your business may look very different a few years from now.
You might grow out of the property, need less space, sell the business, or move to another location.
Ask whether the lease allows you to:
Sublease all or part of the property
Assign the lease to another business
Transfer the lease if the business is sold
Even if you don't expect to do any of those things, knowing your options gives you a better idea of how flexible the lease really is.
15. What Happens If I Need to Leave Early?
Ask what happens if you need to move before the lease expires.
Find out whether the lease includes:
An early termination option
Notice requirements
Termination fees
Remaining rent obligations
Subleasing options
Other penalties
Nobody signs a commercial lease planning to leave early, but businesses and circumstances change.
16. What Happens When the Lease Ends?
Finally, ask exactly what you're expected to do when you move out.
You may need to:
Remove equipment
Remove signage
Remove improvements
Repair damage
Restore parts of the property
Return keys or access equipment
Meet specific cleaning requirements
Knowing this before you move in can save you from an unexpected expense several years later.
Bring These Commercial Lease Questions With You
There's a lot to consider when you're looking at commercial property, and it's easy to forget something during a tour or lease discussion.
Before signing, make sure you understand:
What you'll actually pay each month
How the rent can change
How long you're committing to the property
What maintenance you're responsible for
Whether your business use is allowed
What changes you can make
What insurance you need
What happens if your business needs change
What you're responsible for when you leave
If you want a deeper explanation of the lease terms behind these questions, read our guide on what to look for in a commercial lease.
You can also read our guide on how to find commercial space for rent for help with the overall property search.
Commercial Properties for Rent in Bloomington-Normal
Once you know which questions to ask, the next step is finding a property that fits your business.
Hermes Properties owns and manages commercial properties for rent in Bloomington, with office, retail, warehouse, flex, storage, and other commercial space available in Bloomington, IL, Normal, IL, and throughout Central Illinois.
Browse our available properties to see what's currently available. If you find a space that might work for your business, contact Hermes Properties to learn more or schedule a tour.
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