Commercial Lease Negotiations: Tips for Landlords and Tenants in Maryland

• September 28, 2025
• Business Law

If you’ve leased business space before, you already understand that commercial leases are considerably more complex than residential leases. They also are not nearly as regulated. Maryland’s hands-off approach to commercial leases can be beneficial because it gives landlords and tenants more room to work out a customized contract. However, it also comes with a major disadvantage:  Unless they’re working with an experienced commercial real estate lawyer, either party might unwittingly sign a lease that is not favorable to them. Here are some tips for landlords and tenants trying to negotiate commercial leases.

Before signing a commercial lease as a landlord or tenant, you should fully understand each lease provision and challenge any provisions that are unfavorable to you. The best way to protect your rights is to work with a commercial real estate lawyer.

Tips for Landlords

As a landlord, you take on considerable risk every time you lease to a new tenant. If you want to protect yourself and your property, it’s critically important to do the following:

1. Understand Market Value

Before you even list a commercial property, do some market research. You should look closely at comparable properties in your general area, taking the following into account:

• The general condition of the property
• The age of the building
• The specific location
• Any amenities included in the lease.

As you research available properties similar to yours, you’ll get an idea of the fair market rate for your property.

2. Craft Clear Lease Terms

Don’t make the mistake of relying on a generic online template to create a lease agreement. These templates are often deliberately vague, and their clauses may be difficult to enforce. Your lease should be as precise and detailed as possible in outlining your rights and responsibilities and those of your tenant. These are some of the key lease terms to include:

• Who covers repairs and maintenance
• How the rent will increase from year to year
• Options for lease renewal
• What uses of the property are permitted and not permitted
• Whether tenants are permitted to make changes or improvements
• What happens in the event of a default.

When you work with a commercial lease attorney, your lawyer will be able to help you craft a clear, complete lease that benefits you and your tenant.

3. Protect Your Investment

Before agreeing to rent a property, you should screen potential tenants to look for any possible risks. You also should investigate the business. Is it established and financially stable? Or is it a startup that might close in a year or two? Requiring a security deposit and/or a personal guarantee is essential.

You also should make sure the property itself is protected. It should be insured at all times, and your lease should clarify whether you or the tenant is responsible for insurance.

Are you getting ready to lease a property? Before you sign anything, ask a commercial landlord/tenant lawyer look it over. Call us at (443) 535-9715 or get in touch via our online contact form to book a consultation.

Tips for Tenants

If you’re a commercial tenant, your monthly lease payment is often your business’s biggest expense. The more favorable your lease terms are, the more likely you are to succeed. Here are some things to consider when negotiating your lease.

1. Assess Your Needs

Before you even start looking, list your requirements. How much space do you need? How long do you want your lease to be? Are there particular amenities you need? If you anticipate your business will grow over the term of the lease, you should consider looking for flexible lease terms.

2. Negotiate Favorable Terms

It’s important to try to negotiate lease terms that are favorable to you. These are some potential points to negotiate:

• An initial rent-free period
• Clauses allowing you to sublet if your situation changes
• Clauses requiring the landlord to cover property taxes
• Limitations on rent escalation.

Keep in mind that the more established and financially stable your business is, the more likely a landlord is to negotiate with you.

3. Conduct Due Diligence

A commercial lease is a major commitment, and you should conduct due diligence before signing. Carefully inspecting the lease (and enlisting the help of an attorney) is part of due diligence, but it shouldn’t be your only focus. You should conduct a close inspection of the property to identify any potential issues. If you find problems, ask the landlord to fix them before you commit. You also should have a thorough understanding of local zoning laws to ensure there are no conflicts with your company.

Unique Considerations for Maryland

State Law Presents Unique Benefits and Challenges

Before signing any Maryland commercial lease (as either a landlord or tenant), you should consult with an attorney to verify that all lease terms are enforceable. For example, in Maryland, lease clauses releasing a landlord from liability for injuries on the property caused by the landlord’s own misconduct are not enforceable.

The commercial real estate rental market is not nearly as regulated as the residential market, but Title 2A of Maryland Commercial Law outlines the law as it applies to creating and enforcing commercial leases. The law leaves it up to the landlord and tenant to negotiate most lease provisions. However, there are certain procedures — like evicting a commercial tenant for non-payment — that are still clearly outlined. Because so many lease terms are set by the landlord and tenant (and not by state law), working with a commercial real estate lawyer when negotiating is essential.

Need Help Negotiating a Commercial Lease?

Advocates for Life’s Obstacles and Opportunities

At Lusk Law, LLC, our attorneys have many years of experience helping commercial landlords and tenants negotiate fair, mutually beneficial leases. We understand that lease negotiation can be an intimidating process, particularly for new landlords or tenants. If you need an advocate while negotiating a commercial lease in Frederick and surrounding areas, we’re just a call away.

If you’re in the process of negotiating a commercial lease as a landlord or tenant, call Lusk Law, LLC at (443) 535-9715 or get in touch online to schedule a confidential consultation today.