A commercial lease is a business contract first and a rental agreement second. Texas law gives commercial landlords and tenants wide freedom to set their own terms, and the consumer protections that apply to residential leases largely do not apply. Whatever the document says will usually govern, even when a term seems harsh.

Most leases are drafted by the landlord's counsel, and the first draft favors the landlord. That is not improper, but it means the tenant who signs without review accepts risks that were negotiable. For landlords, the risk runs the other way: a lease with loose remedies or vague expense language can leave rent uncollected for months.

Below are the provisions that decide most disputes, and what each side should look for before signing.

Rent, escalations, and operating expenses

Base rent is only part of the cost. Many Texas commercial leases are structured on a triple net basis, meaning the tenant also pays a share of property taxes, insurance, and common area maintenance. Review how that share is calculated, whether it is capped, whether the landlord's management fee is included, and whether the tenant has the right to audit the landlord's expense statements. Annual escalations should state a fixed percentage or a defined index; an open ended "market" adjustment invites argument later.

Use, assignment, and exit rights

The permitted use clause controls what the tenant may do in the space, and a narrow clause can block a change in the business model or a sale of the business. Assignment and subletting clauses decide whether the tenant can transfer the lease if it outgrows the space or needs to leave early. Look for a landlord consent standard that cannot be withheld unreasonably, and for any recapture right that lets the landlord take the space back when consent is requested. Renewal options, early termination rights, and holdover rent should be stated in exact terms.

Default, remedies, and the personal guaranty

Texas gives commercial landlords strong remedies. The Texas Property Code allows a landlord to change the locks on a tenant that is behind on rent, and the landlord holds a statutory lien on the tenant's property in the premises for unpaid rent. The lease will usually expand those rights further. Tenants should review the cure periods, the definition of default, acceleration of future rent, and the landlord's duty to mitigate. Most landlords also require a personal guaranty from the business owner. The scope, cap, and duration of that guaranty are negotiable and are often the most important terms in the entire lease for the owner personally.

Key Takeaways

• Commercial leases in Texas are enforced largely as written; there is little statutory protection to fall back on.

• Total occupancy cost includes operating expenses and escalations, not base rent alone.

• Assignment, sublease, renewal, and termination clauses determine whether the tenant can adapt or exit.

• Default remedies and the personal guaranty carry the greatest financial exposure and deserve the closest review.