This is a general conversation about questions to discuss with your own attorney. Craig describes negotiating objectives, not terms that every landlord must accept or rules that apply to every lease. Rent commencement and any guaranty depend on the agreement and applicable law; a “good guy” provision can carry notice, payment and surrender conditions.
Start with the business, then read the lease
Jodi Neilson: Craig, when an owner brings you a lease and says, “I just need to know if I can sign,” what do you need to understand about the business first?
Craig A. Fine: Before looking at standard lease text, I need to understand the core operational realities: what the revenue model requires, peak foot traffic expectations, utility demands, and the realistic timeline for municipal buildout and permits. If a lease triggers rent commencement before local approvals can be secured, the business is paying for dead time.
Jodi Neilson: How would you walk that owner through the total occupancy cost, beyond the advertised rent?
Craig A. Fine: Base rent is only the starting point. We have to account for real estate tax escalations, common area maintenance (CAM) charges, utility sub-metering, insurance requirements, and potential municipal assessment pass-throughs. True occupancy cost is the total financial obligation required to keep the doors unlocked every month.
Opening delays and the personal guaranty
Jodi Neilson: If renovations or approvals delay opening, what questions should have been addressed in the agreement?
Craig A. Fine: The agreement must explicitly tie rent commencement to the issuance of a temporary certificate of occupancy or final municipal sign-off, rather than a hard calendar date. If the landlord causes delays or municipal agencies take longer than anticipated, the tenant should not be penalized with rent obligations for a space they cannot legally occupy.
Jodi Neilson: How do you explain a personal guaranty and the owner’s options when the business needs to leave?
Craig A. Fine: A personal guaranty means the owner’s personal assets—homes, savings, and personal credit—are on the line if the business defaults. When structuring a lease, we look to negotiate “good guy” guaranties, which limit personal liability to the period the business actually occupies the space and hands back clean possession, rather than guaranteeing the entire multi-year lease value unconditionally.
Make the first conversation useful
Jodi Neilson: What should the owner bring to the first review meeting to make it productive?
Craig A. Fine: Bring the complete, unexecuted lease draft, the letter of intent (LOI), floor plans, a clear breakdown of projected startup capital, and any specific correspondence or verbal promises made by the landlord’s broker regarding buildout allowances or concessions.
Continue the conversation
Explore Craig A. Fine on commercial and residential leasing and the Staten Island property guide. New York City also describes its Commercial Lease Assistance Program for eligible small businesses.
Have a topic for a future AMS interview? Email contact@allstatemerchants.com. Please do not send confidential information about a legal matter.
This interview provides general information, not legal advice, and does not create an attorney-client relationship. Laws and circumstances vary. Consult your attorney about your specific situation.
