Top 5 Mistakes to Avoid When Leasing Commercial Property in Southern California

gloryanng8
Jul 11
1 min read

Leasing commercial property in Southern California offers enormous opportunity—but it also comes with hidden pitfalls. Whether you're a small business owner or an experienced entrepreneur, overlooking key details can cost you thousands and stall your growth. Here are the top five mistakes to avoid:

1. Signing Without Understanding the Lease Type

From gross to triple-net (NNN) leases, the structure greatly impacts your monthly costs. Always clarify what's included—utilities, maintenance, insurance—and what’s not.

2. Underestimating Total Occupancy Costs

Beyond rent, there may be CAM (Common Area Maintenance) fees, property taxes, and even shared utility surcharges. Don’t just look at the base rent—analyze the full financial commitment.

3. Failing to Negotiate Lease Terms

Southern California’s commercial leasing market is competitive, but many landlords are open to negotiation. Skipping this step may leave you locked into unfavorable renewal clauses or rent escalations.

4. Overlooking Zoning & Compliance

Ensure the property is zoned for your business type. A non-compliant location can halt operations or delay permitting, costing you valuable time and money.

5. Not Consulting a Commercial Real Estate Professional

Working with an expert who understands the local market saves time, prevents costly oversights, and helps you get better lease terms tailored to your business goals.