The Silent Terms - How to Spot Unfavorable Commercial Terms

Rigid Assignment & Subletting

In Maine’s small-business-centric market, the ability to

assign a lease is a critical asset. Clauses that leave

transfers to the landlord’s 'sole discretion' create

significant hurdles for owners looking to sell or exit their

operations.

Ambiguous Operating Expenses (CAM)

In the Maine commercial real estate market, snow removal

and sanding are volatile 'Variable Expenses' that can lead

to significant CAM fee spikes. Absent a contractual

cap on these costs, a severe winter poses a substantial

financial risk to a small business’s operating budget.

Hidden Relocation Clauses

A 'Right to Relocate' clause gives landlords the power to

bump your business for a bigger tenant. In competitive

spots like the Old Port, you risk losing your prime location

for a back-alley space, potentially inheriting the full bill for

new signage and branding.

Vague HVAC Responsibilities

In Maine, where heating and cooling systems work

overtime, a NNN lease can be a financial trap. You

might find yourself paying $20k for a brand-new HVAC

system that will outlast your two-year lease by over a

decade.

Unlimited Personal Guarantees

To protect personal assets from business liabilities,

Maine entrepreneurs should be wary of unlimited

guarantees. Negotiating a 'Burn-Off' clause ensures that

your personal responsibility for the lease terminates once

the business hits specific operational milestones.

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