Commercial lease scams are on the rise, and even experienced business owners can fall victim. Scammers may pose as landlords or property managers, asking for deposits, advance rent, or other payments for spaces that don’t exist. Learning to spot warning signs, verify leases, and take the right precautions can help protect your business finances.
What Are the Most Common Commercial Lease Scams?
- Fake Property Listings
Scammers copy real listings from legitimate sites and repost them with altered contact information. Once a business inquiries, they request a deposit to “secure” the space.
- Impersonating Property Owners or Agents
Scammers claim to represent a building owner or management company. They may use official-looking documents or email addresses that appear legitimate.
- Pressure-to-Pay Schemes
Victims are told the space is in high demand and must act quickly. The scammer pushes for:
- Cashier’s checks
- ACH transfers
- Cryptocurrency
- Wire transfers
- Phishing During Lease Negotiations
Some scams begin with real communication but later include fake payment instructions or altered wiring details.
How to Spot a Fake Commercial Lease Scam
Be alert for these red flags:
- The property is priced significantly below market value.
- The “owner” refuses to meet face-to-face or show the place.
- You are asked to send money before touring the property.
- You are pressured to act immediately.
How to Verify a Commercial Lease Before Paying
Before sending money or signing a lease:
- Confirm Property Ownership - Search public property records to verify who owns the building.
- Verify the Leasing Agent - Contact the property management company directly using information from its official website.
- Tour the Space - Always visit the property in person or send a trusted representative.
- Validate Payment Instructions - Call a verified phone number to confirm wiring details before sending funds.
- Consult a Professional - Consider reviewing lease agreements with an attorney, or trusted financial advisor.
What to Do If You Encounter a Commercial Lease Scam
If you suspect you've been targeted:
- Contact your bank immediately and report the transaction
- Report it to the Federal Trade Commission (FTC)
Quick actions can improve the chances of recovering funds.
