Commercial lease checklist
Commercial lease checklist before signing
Use this hub to compare the main lease questions before signing. A unit can look attractive but become fragile once rent, lease length, service charge, business rates, fit-out, deposit, stock, staffing, and weak early trade are included.
Start with the issue that matters most, then use the free commercial check and the £49 Standard Commercial Viability File if you want a structured decision memo.
YieldLens UK provides indicative decision-support only. It is not financial advice, legal advice, tax advice, a valuation, a RICS valuation, or a substitute for professional due diligence.
Quick answer
Use the hub when you need a fast route into the lease issues that can change viability. YieldLens helps pressure-test rent burden, opening cash, break-even pressure, downside trading, and the key lease terms before signing, so you can decide which guide deserves deeper work first.
- Check whether the site can carry the rent.
- Verify whether opening cash is enough after fit-out and deposits.
- Test whether the lease still works if trade starts slowly.
- Ask whether the lease terms create hidden cost pressure.
Before-signing guides
Commercial lease issues to check before signing
Use the hub to pick the guide that matches the clause or cost line you need to pressure-test first.
Total lease costs
Rent is only part of the commitment.
Read next: Commercial lease costs before signingHeads of terms
Deal points are harder to change later.
Read next: Commercial heads of terms before signingLease length
The term sets the commitment period and fit-out payback window.
Read next: Commercial lease length before signingRent-free period
It affects launch cash and early trading runway.
Read next: Commercial rent-free period before signingRent deposit
It ties up cash before trading starts.
Read next: Commercial lease deposit before signingService charge
It changes the true occupancy cost.
Read next: Commercial service charge before signingBusiness rates
They can materially change the monthly cost base.
Read next: Commercial business rates before signingPermitted use
It decides whether the intended business can actually operate there.
Read next: Commercial permitted use before signingFit-out costs
They drain cash before revenue starts.
Read next: Commercial fit-out costs before signingBreak clause
Exit flexibility affects downside risk.
Read next: Commercial break clause before signingAssignment and subletting
Exit flexibility matters if the business changes or the site underperforms.
Read next: Commercial assignment and subletting before signingPersonal guarantee
It can turn a lease problem into a personal downside.
Read next: Commercial personal guarantee before signingRepairing obligations
Hidden repair exposure can change the economics.
Read next: Commercial repairing obligations before signingWhy the checklist matters
Commercial lease mistakes are expensive because the lease is only one part of the risk.
The headline rent is easy to focus on. The weaker point is often the full cost stack and the lease obligations that sit around it.
The key checks
What should the commercial lease checklist cover?
A useful checklist should cover affordability, setup cash, trading assumptions, lease terms, and the evidence behind them.
Not all of these need to be resolved at the same time. Check these early, before heads of terms are agreed, because heads of terms, rent-free period, deposit, and lease length are typically the earliest decisions. Confirm the remaining items during legal review.
Rent and affordability
- Annual and monthly rent
- Rent as share of expected revenue
- Rent review terms
- Rent-free period
- Deposit
- Service charge
- Business rates
Setup and opening cash
- Fit-out quotes
- Equipment
- Legal and professional fees
- Launch stock
- Utilities
- Insurance
- Cash buffer after opening
Trading assumptions
- Realistic revenue
- Customers per day
- Average spend
- Seasonality
- Opening hours
- Staffing pattern
- Supplier costs
Lease terms
- Lease length
- Break clause
- Repair obligations
- Permitted use
- Assignment and subletting
- Personal guarantees if relevant
- Opening delays
- Landlord works
Evidence to gather
- Comparable rents
- Footfall
- Local competition
- Contractor quotes
- Service charge history
- Rates estimate
- Licensing or planning requirements
Questions to ask
Ask the questions that turn the checklist into a real decision.
These are the questions that should be answered before rent, fit-out, and legal costs become sunk.
Rent and cash
What happens if fit-out delays opening? Is the rent-free period long enough? Can the opening cash buffer survive deposits, stock, and setup costs?
Lease terms
Is service charge capped or variable? Who pays for repairs? Is the lease length right for the plan? Can rent increase at review? Is there a break clause? Can the lease be assigned or sublet? Is a personal guarantee required? Are landlord works documented?
Trading evidence
What evidence supports expected trade? Are footfall, competitor demand, customer volume, and average spend realistic for the unit?
Evidence to gather
Collect the evidence that makes the checklist real.
A checklist is stronger when it is tied to actual figures, quotes, and trading evidence.
Trading evidence
Cost evidence
Lease evidence
How YieldLens helps
Use YieldLens to pressure-test the numbers before signing.
The free check gives a viability snapshot. The £49 Standard Commercial Viability File turns the result into a decision memo with negotiation levers, evidence checklist, and lease questions.
Free check
- Rent burden, break-even customers, opening cash, downside trading, and six-month survival.
- A fast viability snapshot before you commit.
- Helpful when you need to know whether the site deserves deeper work.
£49 Standard Commercial Viability File
- Stress-test interpretation, negotiation levers, evidence checklist, and lease questions.
- A printable commercial decision memo tied to the saved result.
- Useful when the numbers need to become a decision path before signing.
Business-type rent checks
Use the page that matches the unit type.
The checklist hub sits alongside the business-type affordability checks so the cluster stays connected.
Product bridge
After reviewing the lease points, run a free commercial check.
Test rent burden, opening cash, and downside pressure before the lease gets expensive to unwind.
What to verify before signing
Frequently asked questions
Commercial lease checklist FAQs
Practical answers for operators who need to pressure-test a unit before heads of terms become a commitment.
What should I check before signing a commercial lease?
Start with rent burden, break-even customers or sales, upfront cash, downside trading, service charge, rent review, lease length, repairing obligations, break clauses, assignment and subletting, personal guarantees, and permitted use. Then ask a solicitor to review the legal terms.
Should I sign a lease based only on rent?
No. Rent is only one part of the risk. Fit-out, deposit, staffing, rates, utilities, and lease clauses can change the real economics materially.
What is rent burden?
It is monthly rent divided by expected monthly revenue. YieldLens uses 12% as a healthier screen and 18% as a caution threshold. Those are YieldLens screening thresholds, not universal rules.
What is a break clause?
A break clause is a contractual exit point. It matters because it can reduce the downside if the site underperforms after opening.
Why do repairing obligations matter?
Repairing obligations can create hidden costs and responsibility for damage or upkeep that are not obvious from the headline rent.
Can YieldLens tell me whether to sign?
No. YieldLens UK provides indicative decision-support only. It helps you pressure-test the numbers and questions, but it does not tell you to sign or not sign.
Pressure-test the lease before the numbers become a commitment.
Run a free commercial check, then decide whether the site deserves deeper work.
YieldLens is built to help you judge the rent, setup costs, lease terms, and opening cash before a commercial lease becomes expensive to unwind.
Important disclaimer
YieldLens UK provides indicative decision-support only. It is not financial advice, legal advice, tax advice, a valuation, a RICS valuation, or a substitute for professional due diligence.