Tenant Exposure Calculator

Remaining Rent Obligation

This is the most straightforward component: your monthly rent multiplied by the number of months remaining on your lease. If your business fails or you need to relocate, this is the amount you could owe the landlord for the unexpired term — unless your lease includes an early termination clause or you can find a subletter.

Many tenants assume they can simply "walk away" from a lease. You cannot. A commercial lease is a binding contract, and the landlord can (and often will) pursue you for the full remaining balance.

Personal Guaranty Amount

If you signed a personal guaranty, your personal assets — including your home, bank accounts, and investments — are collateral for the lease. This is separate from your business entity's liability. Even if your LLC goes bankrupt, the landlord can come after you personally.

Check whether your guaranty is limited (capped at a specific dollar amount or number of months) or unlimited (the full remaining value of the lease). An unlimited personal guaranty on our sample lease means an additional $144,000 of personal exposure.

If your guaranty has a "good guy" clause, your personal liability may end when you vacate — but only if you surrender the space in proper condition and give required notice. Read the fine print carefully.

Restoration & Build-Out Costs

Most commercial leases require you to return the space to its "original condition" when the lease ends. That means removing any improvements you made: walls you built, flooring you installed, fixtures you added, signage you mounted. This isn't optional — if you don't do it, the landlord will, and they'll bill you at premium contractor rates.

Restoration costs typically range from $15 to $50 per square foot depending on the extent of your build-out and the type of space. Even a modest office build-out can cost $20,000–$40,000 to reverse.

Early Termination Penalty

Some leases include an early termination option — the right to exit the lease before its natural expiration, in exchange for a penalty. This is actually better than having no termination option at all (where you'd owe the full remaining rent). But the penalty is still substantial.

A typical early termination penalty is 3–6 months' rent, plus the unamortized portion of any tenant improvement allowance the landlord provided. If the landlord gave you a $50,000 build-out allowance amortized over 5 years, and you leave after 2 years, you'll owe back 60% of that allowance ($30,000) on top of the rent penalty.

Legal Fee Exposure

Examine your lease for attorney fee provisions. Many commercial leases contain one-sided attorney fee clauses: if the landlord sues you and prevails, you pay their legal costs. But if you sue the landlord and win, each side pays their own fees. This asymmetry is standard in landlord-drafted leases.

In a lease dispute, landlord's attorney fees typically range from $10,000 for a straightforward collection action to $50,000+ for a contested matter that goes to trial. If your lease has an indemnification clause, you may also be responsible for the landlord's legal fees in disputes with third parties related to your tenancy.

Holdover Penalty

A holdover provision dictates what happens if you remain in the space past your lease expiration date. Most commercial leases set holdover rent at 150–200% of your base rent, and the tenancy converts to a month-to-month arrangement terminable by the landlord on short notice.

This matters more than you think. Lease negotiations can take months. Construction on your new space can be delayed. If you need even 60 days of extra time, the cost at 200% of rent is significant. Some leases also require you to indemnify the landlord for any consequential damages caused by your holdover — for example, if the landlord loses a new tenant because you didn't vacate on time.