As-is condition is a lease term specifying that the landlord delivers the space in its existing condition, with the tenant responsible for any improvements or repairs needed to make it suitable for their use. As-is delivery is most common in short-term leases or deals with minimal or no TI allowance, since the landlord isn't investing in bringing the space to a different condition.
Why thorough inspection matters for as-is space
Because the tenant assumes full responsibility for the space's existing condition, a thorough property inspection before signing is especially important under an as-is lease. Unlike a turnkey or landlord-work arrangement where the landlord bears responsibility for bringing the space to an agreed standard, as-is delivery means any deficiencies discovered after move-in are generally the tenant's problem to fix.
What to watch for before committing
Thorough pre-lease inspection
Conduct a comprehensive property inspection before signing, since you're accepting full responsibility for existing conditions.
Documented existing condition
Document the space's condition in detail at lease signing, including photos, to avoid disputes about pre-existing versus tenant-caused issues later.
Structural and system functionality
Verify roof, HVAC, electrical, and dock equipment are functional, since "as-is" doesn't guarantee these systems work properly.
Negotiating limited landlord repairs
Even in an as-is deal, attempt to negotiate landlord responsibility for major structural or system failures discovered shortly after move-in.
Environmental and compliance verification
Confirm the space meets your zoning and code compliance needs, since as-is delivery doesn't guarantee suitability for your specific use.
Budget for necessary improvements
Realistically budget for any improvements needed to make the space suitable for your operations, since these costs fall entirely to you.
When you need to know this
- Short-term or flexible leasing arrangements — understanding that minimal landlord investment typically means as-is delivery
- Negotiating a new lease — recognizing when a deal is structured as as-is versus landlord work or TI allowance
- Budgeting move-in costs — planning for improvement costs that fall entirely on you under this delivery structure
- Conducting property due diligence — prioritizing thorough inspection given full assumption of existing condition risk
Frequently asked questions
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