Maryland Commercial Maintenance: NNN Leases & Make Good

The most shocking realization for new commercial tenants transferring from residential spaces is that there is no Implied Warranty of Habitability in Maryland commercial real estate. A commercial landlord has absolutely zero statutory obligation to provide a functional, safe, or modern operating environment.

The Lease Dictates All Maintenance

If the HVAC system explodes in August, or the roof collapses in December, the party responsible for the repair is determined entirely by how the lease was negotiated.

Triple Net (NNN) Leases

In modern commercial retail and industrial parks, NNN leases are standard. In an absolute NNN lease, the tenant is responsible for 100% of the maintenance and repair costs for both the interior of their space and a pro-rata share of the building's exterior.

• The landlord effectively acts merely as a financier collecting base rent.
• The tenant pays for their own HVAC repairs, plumbing, electrical work, and contributes monthly to a Common Area Maintenance (CAM) fund to pay for the roof, parking lot paving, and exterior lighting.

Gross Leases

More common in multi-tenant office buildings. The tenant pays a single, higher flat rate for rent, and the landlord covers all structural repairs, common area janitorial services, taxes, and insurance.

HVAC Maintenance Contracts

Because heating and air conditioning units are the most expensive mechanical components regularly needing repair, Maryland commercial leases frequently contain specific HVAC clauses.

• A standard clause requires the tenant to secure a preventive maintenance contract with a licensed, landlord-approved HVAC contractor, requiring quarterly filter swaps and inspections.
• If the tenant fails to produce this active contract, they become solely liable for the entire cost of replacing a catastrophic HVAC failure.

End-of-Lease "Make Good" Provisions

The maintenance dispute phase often peaks at the end of the tenancy. Commercial tenants frequently conduct massive build-outs: erecting partition walls, installing heavy commercial kitchen equipment, or bolting machinery to concrete floors.

A rigorous Maryland commercial lease will include a "Make Good" or "Surrender" clause. This clause requires the tenant, at their sole expense, to demolish their custom build-out and restore the premises back to "vanilla shell" condition before handing over the keys. If the tenant leaves partition walls standing, the landlord will hire demolition crews and aggressively pursue the former tenant for the bill.

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