What makes a commercial lease different from a residential lease? In Utah, commercial leases are governed primarily by contract law, not the Utah Fit Premises Act that protects residential tenants. This gives business tenants more freedom and more risk. Most rights and obligations come down to what is written in the lease, so it is critical to negotiate clear terms before signing.

Go through the document line by line. Pay special attention to:

• Rent terms and increases. Confirm how rent is calculated and whether there are built-in escalations or added common area fees.
• Maintenance and repairs. Clarify who pays for roof, plumbing, HVAC, and structural repairs. These can be expensive surprises.
• Insurance and liability. Check whether you must carry liability insurance and how much coverage the landlord requires.
• Renewal options. A renewal clause gives stability. Confirm how rent will adjust if you renew.

Before you sign, verify that your business type is allowed in that location under local zoning ordinances. Cities like Salt Lake City, Provo, and Ogden publish zoning maps online. You can also confirm permitted uses with the local planning department.

If you need to remodel or improve the space, the lease should state whether the landlord provides a TI allowance or if you must cover the cost. Never assume upgrades are included. Clarify who owns improvements at the end of the lease.

For commercial properties, landlord duties are almost entirely contractual. Often the landlord handles major structural items, utilities, and common areas if stated in the lease. Confirm these obligations in writing.

If a tenant stops paying rent or breaches the lease, the landlord can terminate and seek eviction through the courts under Utah Code § 78B-6-801. Tenants may seek early termination if the landlord breaches key terms, but written notice and proof are essential. See Utah Code §§ 78B-6-801 to 816 for possession rules.

Commercial deposits do not have the same protections as residential deposits. The return, use, and timing depend on the contract. Rent escalations, whether annual or CPI-based, should be clear and predictable in the lease text.

Many landlords require small business tenants to sign personal guarantees, making the owner personally liable if the business defaults. Negotiate limits where possible, such as capping the guarantee at one year of rent.

Include a dispute resolution clause. Mediation or arbitration can be faster and less costly than litigation. Utah courts often encourage these methods before formal eviction or contract actions.