Signing a commercial lease in Lagos is one of the biggest commitments a business makes. Rent is usually paid one or two years upfront, fit-out money goes into a building you do not own, and a bad clause can follow you for years. Before you sign for an office, shop, restaurant or warehouse, check these five things.

1. The landlord's title and the building's approval for business use

Ask to see proof that the landlord owns the property or has the right to let it. In Lagos that usually means a Certificate of Occupancy or a registered deed with Governor's consent. If you are dealing with a tenant who is subletting, ask for the head lease and written consent from the owner.

Then check that the building is approved for your use. Many commercial spaces in Lagos are converted houses. A residential building used as an office or shop needs the right planning approval, and without it the authorities can seal the building, even when you are the tenant. Ask your lawyer to confirm the approved use before you pay anything.

2. The real cost of the space, not just the rent

The rent figure is only part of what you will pay. Before you compare two spaces, put these on one page:

Rent, and whether it is quoted per square metre or per year, in naira or in dollars.

Service charge, which covers diesel, security, cleaning and maintenance, and how it is calculated and reviewed.

How many years the landlord wants upfront.

Agency and legal fees. In Lagos these are often a percentage of the annual rent, so ask for the exact figures in writing.

Taxes. Commercial rent can attract VAT, and companies may need to deduct withholding tax from rent. Confirm the position with your accountant before you agree the payment terms.

Caution or security deposit, and when it comes back.

3. Lease length, rent reviews and how you can leave

A longer lease protects your fit-out investment, but only if you can live with the terms. Check:

How long the lease runs and whether you have a right to renew.

How and when the rent can go up. Ask for a fixed percentage or a cap instead of an open review.

Whether you have a break clause, so you can leave early if your business changes.

Whether you can sublet or assign the lease if you need to.

4. Fit-out, handover condition and what happens when you leave

Agree in writing what state the space will be in on the day you get the keys: shell, semi-finished or fully fitted. Then agree:

Who pays for partitions, ceilings, cabling and air conditioning.

How long you get to fit out before rent starts. A rent-free fit-out period is common on longer leases.

What landlord approval you need for your design.

Whether you must return the space to its original condition when you leave, and who keeps the improvements.

5. Power, access, parking and signage

These decide whether the space actually works day to day.

Power: how many hours the generator runs, who buys the diesel, and whether your usage is metered.

Water and cooling: borehole, treatment and central or split air conditioning.

Access: opening hours, weekend access and security for staff and visitors.

Parking: how many bays come with your space, and the cost of extra bays.

Signage: whether you can put your name on the building or the frontage. For shops, restaurants and showrooms this matters as much as the rent.

Before you sign

Have a property lawyer review the lease, inspect the space at the time of day you will use it most, and get every promise from the landlord written into the agreement.

Looking for space? Or have one? Talk to Nadi, Jennifer or Itohan, our commercial specialists, or browse current offices, shops and commercial buildings at cwlagos.com/commercial.