What should I negotiate in a commercial lease besides rent?

The tenant-improvement allowance, free rent, and annual escalations often move more money than base rent. Also negotiate the risk clauses: personal guarantees, renewal and expansion options, assignment and subletting rights, use and exclusivity, delivery condition, and default/cure provisions.

How much is a typical tenant improvement allowance?

It varies widely by market, property type, and space condition. For scale, landlords in major U.S. office markets averaged roughly $95 per square foot in early 2024 (CBRE), though your local submarket and deal will differ. You typically front the cost and the landlord reimburses you.

Is base rent the most important lease term?

Usually not. Base rent is the term landlords most expect to negotiate. Concessions like TI allowance and free rent, plus risk clauses like guarantees and options, frequently have a larger financial and risk impact over the life of the lease.

Negotiation Beyond the Rent Number

In a commercial lease negotiation, the rent-per-square-foot number is the battlefield the landlord is most comfortable defending — and the least of your concerns. The tenant-improvement allowance, free rent, escalations, and operating-expense structure often move more money than the rent tweak ever could, and the risk clauses decide how exposed you are when things change. Here's what to actually negotiate. (None of this is legal advice — pair it with a good attorney.)

What costs and concessions matter more than the rent?

The concessions frequently dwarf a rent adjustment — and they're where landlords prefer to give ground, because tenants watch the rent and skim the rest.

Tenant improvement (TI) allowance. The landlord's contribution to your build-out, quoted per square foot. It can be worth more than a year of rent. In major U.S. office markets it averaged roughly $95 per SF in early 2024 (CBRE). Note the mechanic: you usually front the cost and get reimbursed.
Free rent / abatement. Months of free or reduced rent at the start of the term. The same CBRE data showed major-market office landlords averaging about 9 months of free rent — real money that never shows up in the rent-per-SF comparison.
Escalations. The annual step-up. "Just 3% a year" compounds into a lot over a long term. Fixed vs. indexed, the percentage, and whether there's a cap all matter.
Operating expenses / CAM. Your share of taxes, insurance, and common-area maintenance — how it's calculated, whether increases are capped, and your right to audit.

(Figures are major-market office averages, cited for scale; your Nashville submarket will differ.)

What clauses are about risk, not cost?

Some terms carry no obvious price tag but govern how much danger you're exposed to — and tenants sign them without registering the stakes.

Personal guarantees. Puts your personal assets on the hook. Negotiate a cap, a burn-off after clean payments, or a "good-guy" limit.
Renewal and expansion options. The right to renew or take more space at a defined price. "Market rate" with no cap is weak; a set rate or ceiling is far stronger. An option you forget to exercise is worth nothing.
Assignment and subletting. Your ability to hand off the lease or sublease — critical if you ever sell or relocate the business.
Use, exclusivity, delivery condition, and default/cure. What you can do in the space, protection from a competitor next door, who owns expensive repairs, and how much room you have to fix a mistake.

Why is negotiating well a custodial function?

Because it isn't about the nerve to argue over rent — it's knowing which of a dozen interlocking terms matter most for your business, what's genuinely market in your submarket, and how the pieces trade against each other. You can often win a better TI allowance by giving on term length, or a lower rent by accepting a stronger escalation. Pull one lever and three others move.

A custodial rep spends leverage on the terms that protect you, even when a flashier rent headline would close faster. And they work with your real estate attorney, who should review and paper these terms — representation and legal counsel are different jobs, and a significant lease wants both.