When a Cheap Lease Costs You More: Hidden Costs to Watch Out For

When you're looking for retail or office space, that low base rent can look like a dream. But beware, the cheapest lease on paper is often the most expensive in reality.

Many small businesses and startups sign leases based on sticker price alone, without understanding the full financial picture. Here are the most common hidden costs that can turn a “cheap” space into a budget-breaker, and how a broker can help you avoid them.

1. Triple-Net (NNN) and CAM Charges

A lease that’s “only $18/sq ft” may not include:

• Property taxes

• Building insurance

• Common area maintenance (CAM)

These can add $5–15/sq ft or more to your costs. Always ask for the full gross rent, not just base rent.

2. Poor HVAC = Big Repairs

In many leases, you’re responsible for the HVAC (heating, ventilation, air conditioning). If it fails, you could be on the hook for thousands in repair or replacement costs. A good broker will negotiate inspection rights or warranties into the lease, or steer you toward newer buildings.

3. No Visibility = No Traffic

A cheap lease often means a hidden unit, bad signage options, or no foot traffic. Saving $500/month isn’t worth it if you lose $5,000/month in sales. Brokers can help assess site visibility, traffic counts, and retail viability before you sign.

4. Lack of Tenant Improvement (TI) Allowance

If you get a raw or poorly configured space, buildout costs could hit six figures. Cheaper landlords often offer little or no TI allowance. A good broker negotiates TI dollars up front, and helps you avoid spaces that require extensive work.

5. Short-Term “Deals” That Disappear Later

Watch out for:

• Introductory rent rates that rise sharply

• Renewal terms that aren’t locked in

• Vague language around escalation clauses

You don’t want to be caught off guard after year one.

Work With Someone Who Sees the Full Picture

This is where having a tenant rep broker makes all the difference. They don’t just find listings, they analyze total cost of occupancy, inspect buildings, and negotiate protections on your behalf.

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