A commercial lease is the single largest fixed-cost commitment most small businesses ever make. The landlord's lawyer drafted it; you're expected to sign it. Scrutr reads every clause, scores the lease across fairness, risk, and negotiability, and produces the exact redlines and asks a tenant-side broker or lawyer would generate — without the broker, and without the lawyer's bill.
The seven clauses that decide whether a commercial lease is fair
Scrutr's commercial lease analysis checks: personal guarantee scope and duration, CAM (common area maintenance) definitions and audit rights, base rent escalation method (fixed step-up vs CPI vs porter's wage), tenant improvement allowance and how it's paid, demolition or recapture clauses, assignment and sublet restrictions, and operating exclusivity (for retail). Each is scored HIGH / MEDIUM / LOW with plain-English explanation and suggested replacement language.
Personal guarantees: the biggest mistake first-time tenants make
A personal guarantee makes you, the owner, personally liable for the full lease obligation — typically 5–10 years of rent. Landlords request them by default; most are negotiable. Common alternatives: a limited (capped) guarantee, a 'good guy' guarantee (covers obligations through the date you vacate, not future rent), or a guarantee that burns off after 12–24 months of on-time payment. Scrutr flags the guarantee, identifies which type it is, and suggests the right ask for your situation.
CAM and operating expenses — where landlords quietly recover the rent they didn't charge
CAM and operating expense pass-throughs are where lease economics get decided. Common landlord-favorable patterns Scrutr flags: capital expenditures dressed as operating expenses, management fees over 4% of gross rents, the landlord's marketing costs passed through, and the absence of a gross-up provision (which protects the tenant in a partially-vacant building). Scrutr also checks for tenant audit rights — the right to verify CAM charges — which many leases silently omit.
Demolition, recapture, and relocation clauses
These three clauses give the landlord the right to terminate or move you at their discretion, often with minimal notice and minimal compensation. They're standard in older lease templates and quietly devastating to a tenant who's invested in build-out. Scrutr flags them, distinguishes between unilateral and reciprocal rights, and suggests the standard market protections (advance notice, relocation cost reimbursement, comparable space, right to terminate).
How Scrutr's lease review differs from a real estate attorney's review
A real estate attorney reviewing a commercial lease typically charges $1,500–$5,000 depending on lease size and market. Scrutr produces the same risk analysis and redlines in 60 seconds — free for your first review, $9 per credit after that. For multi-million-dollar leases or unusual structures (build-to-suit, ground lease), an attorney is still appropriate. For the standard office, retail, and industrial leases most small businesses sign, Scrutr is what makes the review actually happen.