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What Every Small Business Owner Should Know Before Signing a Commercial Lease in Alaska

Updated: Jun 18


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Signing a commercial lease in Alaska isn't as straightforward as signing a residential lease. In fact, it's one of the most overlooked yet critical steps in a business’s early growth. Whether you're opening a new location in Wasilla, relocating your office to Palmer, or securing warehouse space near the Parks Highway, understanding the ins and outs of a commercial lease can save you tens of thousands of dollars—and a lot of stress.

As a broker who’s worked with countless small business owners across the Mat-Su Valley, I’ve seen how easily people get tripped up by confusing lease terms, hidden fees, and rigid agreements. This post covers the must-know topics before you sign on the dotted line.


Know the Lease Type: NNN vs. Gross Leases


One of the first things to clarify is the type of lease you’re signing. In a gross lease, you typically pay one lump sum that covers rent and most building expenses. In a triple net (NNN) lease, you pay base rent plus your share of property taxes, insurance, and maintenance.

NNN leases are common in Alaska commercial properties, especially in single-tenant buildings. It’s crucial to understand what’s included—and not included—so you can accurately forecast monthly costs.


CAM Charges: Don’t Overlook Them


CAM stands for Common Area Maintenance, and these charges can sneak up on tenants. They may include snow removal, landscaping, security, and even management fees. Always ask for a breakdown and historical data on CAM charges for the last 2–3 years.


Term Length and Renewal Options


Leases can range from 1 to 10 years (or more), and it's vital to choose a term that aligns with your business plan. A long lease might provide rent stability, but what if your business grows faster than expected?

Make sure your lease includes renewal options and ideally a right of first refusal if the landlord plans to sell the property.


Build-Outs and Improvements


If you’re moving into a space that needs customization, be clear on who pays for the build-out. Landlords will sometimes offer a tenant improvement (TI) allowance, which is a set amount per square foot to help cover costs. Negotiate this up front and get it in writing.


Usage Clauses and Exclusivity


Usage clauses define what type of business can operate in the space. Some leases are overly restrictive or prohibit changes down the road. You should also consider an exclusivity clause if you don’t want a direct competitor leasing the unit next door.


Personal Guarantees


Landlords often require small business owners to personally guarantee the lease. This means if your business fails, you’re still on the hook financially. It's negotiable—especially if you have a strong business plan or significant capital reserves.


Final Thoughts


Before you sign any commercial lease in Alaska, have it reviewed by both your broker and a commercial real estate attorney. These agreements are legally binding and can make or break your business trajectory.


As someone who specializes in commercial leases across the Alaska, I help clients navigate these details every day. From site selection to negotiation strategy, I’m here to help you secure a space that supports your success—now and into the future.


Let’s make sure your next lease is a smart one.


Whether you're looking to lease, buy, or develop, I can help you identify the best opportunities tailored to your goals. As a lifelong Valley resident, commercial broker, and CCIM designee, I know this market inside and out.


📞 Let’s talk about your next investment. Email Jenny@elevatecommercialak.com or call/text directly at 907-360-1936

 

 
 
 

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