COMMERCIAL LEASING · SAN ANTONIO & TEXAS · SMALL-BUSINESS TENANT GUIDE
Your First Commercial Lease in Texas
Before signing a Texas commercial lease, define exactly how the business will use the space, compare the complete occupancy cost, negotiate the lease terms, and confirm that the location can be approved for your use. In San Antonio, check the Certificate of Occupancy and, for a planned buildout, the TDLR accessibility process before treating a deal as ready to open.
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Your path from idea to opening day
Use this sequence as a practical decision checklist. A strong lease starts with a workable business use and ends with a documented handoff, not merely a signature.
- DefineBusiness use and space needs
- ShortlistLocations and approved uses
- CompareTotal occupancy cost
- NegotiateTerm sheet and lease clauses
- VerifyZoning and occupancy status
- CoordinateBuildout and accessibility
- HandoffPossession, access and keys
Why Texas Commercial Leases Are Different from Residential
Quick answer: Texas Property Code Chapter 93 governs commercial landlord-tenant relationships rather than the residential rules under Chapter 92. Commercial leases can allocate significant risks through contract language, so the permitted use, expenses, repairs, possession conditions and remedies deserve scrutiny before signing. Tex. Prop. Code § 93.001.
The first decision is not which storefront looks nicest. It is what the business must do inside the space. A shop with customer traffic, a service business that needs plumbing, an office with private meeting rooms and a distributor with loading requirements will evaluate the same address differently. A floor plan or listing description cannot confirm that the proposed activity is approved.
For many first-time commercial tenants, the biggest surprise is discovering that leasing commercial property involves much more than agreeing on a monthly rental payment. A business owner might focus on negotiating a lower rental rate while overlooking a personal guarantee, an unfavorable relocation clause, or maintenance obligations that could cost thousands of dollars.
Tim FerrisREALTOR®, MBA · LRG RealtyWhat must the space support?
Write down the exact business activity, anticipated customers and staff, hours, deliveries, storage, equipment, power, plumbing, ventilation, parking and accessibility needs. Mark what is required to open versus what could be added later.
What can the business carry?
Set a sustainable occupancy budget that accounts for rent, variable building expenses, utilities, insurance, deposits, improvements, moving, signage and the cash needed before revenue begins. Keep a separate cushion for unexpected work.
Next, build a shortlist based on zoning and the property’s approved use, as well as access, visibility, room layout and the cost of making the space operational. A lower listed rent may be poor value when the required improvements or lease obligations are expensive.
Do this before requesting a lease draft
Give the broker or landlord a clear description of your proposed use and ask whether the city has already approved that use at the specific tenant space. Confirm the answer with the relevant permitting authority rather than relying only on listing language.
Choosing a Lease Type: NNN, Modified Gross, and Full Service
Quick answer: An NNN quote generally separates base rent from the tenant’s share of property taxes, building insurance and common area maintenance (CAM). A full-service quote bundles more building costs into rent. A modified gross lease divides costs under the written agreement. None of these labels replaces the expense provisions in the lease.
Base rent plus pass-throughs
Ask for the current tax, property insurance and CAM budget, your share of each charge, exclusions, reconciliation rules and any caps that can be negotiated.
Costs are divided
Confirm which expenses are included in the stated rent, which are billed separately and whether the landlord can pass through later increases.
More costs are bundled
Verify the included utilities and services and ask about special-use electricity, after-hours HVAC, parking, janitorial service and expense stops.
For an apples-to-apples comparison, request a written statement of base rent, additional rent, CAM categories, separately metered utilities, parking, required insurance and improvements. Ask how expenses are estimated and later reconciled. CAM is not a fixed statewide charge: what the tenant pays depends on the property, the allocation formula and the exclusions negotiated in the lease.
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| Question | NNN | Modified gross | Full service |
|---|---|---|---|
| Property tax and building insurance | Tenant share is generally a separate charge | Divided as written in the lease | Often built into the rent, subject to lease exceptions |
| Common area maintenance | Generally passed through separately | Depends on the negotiated split | Often included, with possible expense adjustments |
| Utilities and services | Confirm tenant-specific billing | Confirm what is excluded | Confirm what is actually included |
| Best comparison method | Base rent plus expense budget | Quoted rent plus excluded charges | Quoted rent plus excluded services or increases |
For a deeper breakdown with expense responsibilities and San Antonio rent comparisons, see LRG’s NNN vs modified gross vs full-service lease guide. For questions about the expense categories themselves, read what CAM charges cover in a Texas commercial lease.
How to Read a Commercial Lease: The Clauses That Matter Most
Quick answer: The key terms define what the business may do in the space, when rent starts, who pays operating expenses and repairs, who funds improvements, and what happens if the business needs to move or close. Review the lease and its exhibits together; an attractive deal summary does not override contrary contract language.
A letter of intent can organize the economic terms before the formal lease is drafted. It is still important to say which terms are intended to be binding, which are only proposals, and what remains subject to attorney review. Use LRG’s Texas commercial lease letter of intent guide to structure that conversation.
Confirm these four items for every property
An unanswered question is not a confirmed commitment. Use the lease documents to resolve each one.
Is the use approved at this address?
Confirm the Certificate of Occupancy, zoning and permitted activities with the city before assuming the space is ready for your business.
What is the total occupancy cost?
Add base rent, operating expense pass-throughs, utilities, deposits, buildout, insurance and any separately billed charges.
Who pays for the buildout and approvals?
Identify which party handles permits, contractor work, TDLR review, accessibility compliance and end-of-term restoration.
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| Clause to review | Why it matters | Tenant-side question |
|---|---|---|
| Permitted use | Controls what business activity may take place | Does it describe the real operation, including planned services and equipment? |
| Delivery and rent start | Connects possession, work completion and payment timing | What happens if the premises or city approvals are not ready? |
| Rent and expense exhibits | Defines base rent, additional charges and allocation methods | Can the landlord show the expense budget, calculations and reconciliation process? |
| Repairs and replacement | Allocates responsibility for HVAC, roof, structure, plumbing and equipment | Which systems belong to the landlord, and what major replacements could fall on the tenant? |
| Buildout and restoration | Determines approval, funding, access and removal obligations | Who handles permits, contractor work, accessibility review and end-of-term restoration? |
| Personal guarantee | May create exposure beyond the business entity | Can its scope, duration, amount or release conditions be negotiated? |
| Assignment, renewal and exit | Controls flexibility when operations change | Can the business transfer the lease, extend the term or exit under defined conditions? |
| Default and remedies | Defines notice, cure, access and consequences of nonpayment | How do the written remedies interact with Texas Property Code Chapter 93? |
Pay special attention to language that makes the tenant responsible for entire building systems, requires restoring expensive improvements, or imposes an uncapped personal guarantee. Review any provision allowing a landlord to pass through capital expenses or management fees. A promised repair or allowance belongs in the written agreement, with clear timing and an identified party responsible for delivery.
A useful lease-review meeting agenda
- Ask the landlord to identify the exact suite condition at delivery and the documents that establish it.
- Request the operating expense schedule and ask which costs are excluded or controllable.
- Confirm whether the proposed use and alterations need additional city review.
- Discuss the personal guarantee, renewal options, relocation rights and assignment restrictions.
- Send the agreed business terms to a Texas real estate attorney for review before execution.
Security Deposits and Lockout Rules Under Texas Property Code Chapter 93
Quick answer: Texas commercial security deposits and lockouts have specific statutory rules, but the contract matters. Under Tex. Prop. Code § 93.005, a deposit must be returned no later than the 60th day after the tenant surrenders the premises and provides a forwarding address. Section 93.002(h) states that a lease supersedes the lockout section to the extent of a conflict. Texas Property Code.
What the deposit rules say
Tex. Prop. Code § 93.006(b) prohibits retaining a commercial security deposit for normal wear and tear. The lease still deserves close attention for damage definitions, surrender obligations, notice details and any contract provisions that might affect the dispute. Under Tex. Prop. Code § 93.011(a), bad-faith withholding in violation of the chapter can make the landlord liable for $100, three times the wrongfully withheld portion and reasonable attorney’s fees.
Can a landlord change the locks?
Tex. Prop. Code § 93.002(c) generally prohibits excluding a commercial tenant without judicial process, but lists exceptions for bona fide repairs, construction or emergency; removing belongings from abandoned premises; and changing locks when the tenant is delinquent in paying rent. Under § 93.002(f), a rent-delinquency lock change requires a notice on the front door identifying where to obtain a new key. The section makes the key available during the tenant’s regular business hours upon payment of delinquent rent.
The lease can alter this statutory section. Tex. Prop. Code § 93.002(h) says a lease supersedes § 93.002 to the extent of conflict. A tenant evaluating default language should therefore review the actual contract with counsel rather than assuming the statute overrides it in every case.
Certificate of Occupancy and Zoning in San Antonio
Quick answer: San Antonio Development Services says each tenant space in a multi-tenant building must have a Certificate of Occupancy based on its approved use. When the owner or lessee changes but the type of use remains basically the same, a new certificate is not necessary under the city’s stated exception. Verify the space and proposed activity with the city before committing to an opening date. San Antonio Development Services.
The certificate is not simply a landlord’s promise that a building has been occupied before. It concerns a particular tenant space and the use approved for that space. A former retail tenant’s space may need a different review if the new operation changes how the premises are used. A business also needs to confirm that its intended activity is permitted under applicable zoning and that planned construction fits the approval path.
Ask the landlord for the record
Request the existing Certificate of Occupancy, the approved use, the address and suite designation, and disclosure of open construction or inspection items.
Describe the actual operation
Give Development Services the business activities, equipment, occupancy needs, hours, alterations and any change from the prior tenant’s use.
Confirm the exception if relying on it
Do not assume an existing certificate automatically transfers every new use. The city describes an exception when the type of use remains basically the same.
Coordinate the lease condition
Clarify in writing who handles any required application, improvements and inspections, and how approval affects possession and rent commencement.
For a San Antonio property, refer to the city’s Certificate of Occupancy guidance or contact San Antonio Development Services through the city’s official website. Confirm the appropriate local authority for properties outside San Antonio city limits.
Put approval risk into the deal conversation
Ask what happens if the city does not approve the proposed use or if work required for occupancy takes longer than expected. The lease should clearly identify the delivery condition, responsibility for applications and construction, and any negotiated right to end or delay the commitment.
TDLR Accessibility Requirements for Tenant Buildouts
Quick answer: The Texas Department of Licensing and Regulation states that projects with total estimated costs of $50,000 or more require TDLR registration and submission of a full set of construction documents to a Registered Accessibility Specialist (RAS) for review under 16 TAC 68.50. The owner is responsible for complying with the Texas Accessibility Standards under Tex. Gov’t Code Chapter 469, even when others handle compliance using the appropriate form. TDLR guidance.
Tenant improvements can include reconfiguring rooms, moving walls, replacing fixtures or making other changes required by the business use. The cost and approval responsibility need to be resolved before a tenant accepts a construction allowance or signs a lease that places broad improvement obligations on the business.
Threshold
TDLR guidance uses the project’s total estimated cost. At $50,000 or more, registration and RAS document review apply under the stated rule.
Owner responsibility
Tex. Gov’t Code Chapter 469 makes the property owner responsible for Texas Accessibility Standards compliance. Another party can handle compliance with the proper form, but the owner should not be omitted from planning.
Review and timing
Identify who engages the RAS, prepares plans, coordinates reviews, corrects issues and tracks completion before deciding when the space can open.
Below the trigger
TDLR says projects with total estimated costs below $50,000 do not have to be submitted for registration and review under this threshold. That does not mean accessibility obligations disappear.
Under Tex. Gov’t Code Chapter 469 and 16 TAC 68.50, clarify the owner’s role, the construction scope and who performs each task. An owner and tenant can allocate work and costs in the lease, but the tenant should not assume that an owner-responsibility rule automatically resolves every contract obligation. The TDLR overview is available at the Elimination of Architectural Barriers at-a-glance guide.
What a Small Business Should Expect to Pay in San Antonio
Quick answer: Asking rent depends heavily on space type and lease basis. According to Q3 2026 retail market report, San Antonio retail asking rent averaged $19.58/SF NNN. Q2 2026 office market report, reported office asking rent of $29.54/SF full service. A Q3 2026 San Antonio commercial market summary reported industrial asking rent of $8.81/SF NNN. These are not comparable as complete occupancy costs.
San Antonio asking rent and vacancy by property type
Office figures require a period-specific comparison. The Q2 2026 office market report gave $29.54/SF full service asking rent and 16.9% vacancy. that summary, citing a published San Antonio office report, gave $29.33/SF full service and 17.8% vacancy. They are separate observations from different quarters and sources, not competing choices for a single current figure.
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| Property type | Asking rent | Vacancy | Period and source |
|---|---|---|---|
| Retail | $19.58/SF NNN | 4.3% | Q3 2026 · retail market report |
| Office | $29.54/SF full service | 16.9% | Q2 2026 · office market report |
| Office | $29.33/SF full service | 17.8% | Q3 2026 · commercial market summary |
| Industrial | $8.81/SF NNN | 10.3% | Q3 2026 · that summary |
CBD, Northwest and South: the local search still matters
The Q3 2026 retail market report placed the CBD at $32.66/SF NNN and the South submarket at $15.56/SF NNN. Northwest San Antonio is another area to include in a site search, but a business should request an actual quote for its target property rather than apply a citywide average to an individual suite.
For broader context, the Q3 2026 retail market report cited San Antonio unemployment of 4.5% (Aug 2026), a metro population of 2.76 million and median household income of $78,112. These indicators help describe the region, but they do not forecast sales for a new business or guarantee lease concessions.
Source reports: Q3 2026 San Antonio retail market report; Q2 2026 San Antonio office market report; and Q3 2026 San Antonio commercial market report.
How to Find and Work with a Commercial Broker
Quick answer: Look for a broker who understands the property type, the proposed business use and the relevant San Antonio submarkets. Before sharing financial information or negotiating, clarify who the broker represents, how any compensation works, and how offers will be documented. An experienced broker can help compare proposals, but a Texas real estate attorney reviews legal risk.
Share the written requirements you developed at the start of the process, including use, location, access, parking, equipment, move-in needs and a realistic occupancy budget. Ask for a search that includes more than attractive listing photos. The broker’s comparison should show the lease basis, pass-throughs, physical condition and unresolved approval questions.
Before touring commercial properties, business owners should have three things clearly defined: their budget, their operational requirements, and their long-term business objectives. The property search should begin with understanding the business, not with touring buildings.
Tim FerrisREALTOR®, MBA · LRG RealtyQuestions to ask before selecting a broker:
- Whose interests will you represent, and are you also working with the landlord on this property?
- How will compensation be handled, and are there any tenant payment obligations in a proposed representation agreement?
- Can you compare the actual lease expenses and condition of the candidate spaces?
- Who coordinates the city-use questions, buildout proposals and lease-document handoff?
- How will potential conflicts, competing proposals and negotiation deadlines be communicated?
Read who pays a commercial real estate broker in Texas before signing a representation document. The broker’s role is to support the site search and transaction; counsel’s role is to interpret the obligations created by the final lease.
Keys in Hand: The Final Commercial Lease Handoff
Quick answer: Signed lease paperwork is not the same as a ready-to-use suite. Before opening, confirm the actual delivery condition, required approvals, agreed construction work, insurance, utility arrangements, building access and the date rent obligations begin.
A good tenant handoff translates the contract into a working space. Walk the suite with the owner or manager, record open repair items and request written acknowledgment of any unfinished work. Confirm the approved use and applicable inspections with the appropriate authority, and identify the person responsible for follow-up. Make sure the business understands which systems it maintains and who responds to urgent building problems.
Written delivery record
Confirm suite condition, any agreed landlord work, keys and access credentials, entry systems, signage rules and a contact for building issues.
Opening approval
Check the San Antonio Certificate of Occupancy status and any required construction approvals before operating from the space.
Operating setup
Confirm utilities, internet, trash service, required insurance and which systems or common areas the tenant maintains.
Rent and expense calendar
Verify the agreed commencement language, payment instructions, reimbursement process and the route for disputing an unexpected charge.
If a handoff item is still unresolved, document it with the landlord and compare it with the lease before assuming responsibility. The goal is a space that can serve customers and employees as intended, not merely a set of keys.
First Commercial Lease in Texas: Frequently Asked Questions
Can a Texas commercial landlord lock me out for late rent?
Texas Property Code § 93.002(c) includes an exception allowing a commercial landlord to change the locks of a tenant delinquent in paying rent. Under § 93.002(f), a rent-related lockout requires written notice on the tenant’s front door identifying where the key can be obtained. The section provides for a key during regular business hours if delinquent rent is paid. Importantly, § 93.002(h) says the lease supersedes that section to the extent of any conflict. The actual lease language needs legal review.
How long does a landlord have to return my commercial security deposit in Texas?
Under Tex. Prop. Code § 93.005, the landlord must return the security deposit no later than the 60th day after the tenant surrenders the premises and gives the landlord or agent notice of a forwarding address. § 93.006(b) prevents retention for normal wear and tear. Review the lease’s surrender and damage provisions and keep written proof of the forwarding-address notice.
Do I need a certificate of occupancy if I take over an existing tenant space in San Antonio?
San Antonio Development Services says each tenant space in a multi-tenant building needs a Certificate of Occupancy based on its approved use. The city also says a new certificate is not necessary when ownership or the lessee changes but the type of use remains basically the same. Confirm the specific suite, previous approved use and your intended activity with the city. A prior tenant’s occupancy does not by itself answer whether your proposed use fits the exception.
What triggers a TDLR accessibility review for a tenant buildout?
TDLR says a project with total estimated costs of $50,000 or more must be registered, with a full set of construction documents submitted to a Registered Accessibility Specialist for review under 16 TAC 68.50. Under Tex. Gov’t Code Chapter 469, the owner is responsible for complying with the Texas Accessibility Standards. Others can handle compliance when the proper form is completed. Below that registration threshold, other applicable accessibility duties still deserve review.
Is a personal guarantee standard on a first commercial lease in Texas?
A landlord may request a personal guarantee, but there is no universal promise that a new business will receive, or be required to give, any particular guarantee. The proposed document determines whether an owner takes on personal liability. Ask whether the guarantee can be limited by amount, time, performance or agreed release terms, and have an attorney review it before signing.
What is a typical lease term for a small retail or office space in San Antonio?
There is no single lease term that applies to every small San Antonio office or retail location. The negotiated term depends on the premises, the business’s needs and the allocation of improvement costs. Compare the rent changes, renewal and expansion options, early-exit provisions, assignment rights and the cost of restoring the space when the lease ends. A short quoted rent figure does not reveal the full commitment.
Compare the Lease Before You Commit
Use the guides below for the questions that most directly affect the expense schedule, representation arrangement and deal terms. For an overview of available help, visit LRG’s commercial real estate leasing hub.
Make Your Next Space Work for Your Business
Tell LRG what the business does, where it needs to operate and what the space must support. Start with the right shortlist, compare the full financial commitment and identify permitting questions before making a final decision.
This is general information, not legal advice. Have a Texas real estate attorney review any commercial lease before signing.
Sources
Market figures are attributed to their specific report and period. Legal and local permitting details are based on the agencies and statutes linked below.
- Partners Real Estate. San Antonio Retail Quarterly Market Report, Q3 2026. https://partnersrealestate.com/wp-content/uploads/2026/10/Q3-2026-San-Antonio-Retail-Quarterly-Market-Report_FINAL.pdf
- Partners Real Estate. San Antonio Office Quarterly Market Report, Q2 2026. https://partnersrealestate.com/wp-content/uploads/2026/08/Q2_2026_San-Antonio_office.pdf
- TenantBase, citing CBRE. San Antonio Commercial Real Estate Market Report, Q3 2026. https://www.tenantbase.com/san-antonio/q3-2026/
- Texas Legislature. Texas Property Code, Chapter 93. https://statutes.capitol.texas.gov/docs/pr/htm/pr.93.htm
- City of San Antonio, Development Services Department. Certificate of Occupancy guidance. https://www.sa.gov/Directory/Departments/DSD/Constructing/Business-Commercial/Certificate-of-Occupancy
- Texas Department of Licensing and Regulation. Elimination of Architectural Barriers at a Glance, Texas Accessibility Standards, 16 TAC 68.50 and Tex. Gov’t Code Chapter 469. https://www.tdlr.texas.gov/media/pdf/eab-at-a-glance.pdf



