How much is the security deposit on a flex space lease in Texas?

Most flex space landlords ask for one to two months of rent as a security deposit, and Texas sets no cap on a commercial deposit, so the number is whatever you and the landlord sign. A new LLC usually lands at the high end, and a business with two years of statements can often argue it down to one month.

Is the deposit figured on base rent or on base rent plus NNN?

The lease decides, and on a NNN lease the same "one month" can mean base rent alone or base rent plus your share of taxes, insurance, and CAM, so ask which one before you compare two quotes.

Deposit basis (2,000 SF example)	Cash at signing
One month, base rent only	$2,667
One month, base rent plus NNN	$3,417
Two months, base rent plus NNN	$6,833
Two months plus first month's rent	$10,250

The figures use the illustrative $16.00/SF base rent and $4.50/SF NNN estimate from our worked example of what flex space costs to lease in DFW. Here is what a NNN lease actually covers.

Is prepaid first month's rent the same as a security deposit?

No. Section 93.004 of the Texas Property Code defines a commercial security deposit as money advanced mainly to secure performance under the lease, and it excludes advance payments of rent.

So the refund rules below attach to the deposit and not to prepaid rent. If a landlord asks for "three months up front," get the lease to say which months are rent and which are deposit, because only the deposit comes back.

What happens to your deposit when you pre-lease a unit that isn't built yet?

It is usually paid at signing and held by the landlord until you move in, which on new construction can be a year or more. McKinney Flex Park breaks ground in Q4 2026 with delivery targeted for December 2027, so a tenant signing there this fall posts a deposit more than a year ahead of rent commencement, and Rockwall Flex Park delivers Summer 2027.

One risk to that money comes from the landlord's lender. Section 93.007 of the Texas Property Code makes a buyer of the building liable for your deposit, and subsection (c) exempts a mortgage lender that takes title by foreclosure, so if a financed project stalls and the bank takes it, the bank does not owe you the deposit. Ask for the deposit back in full if the landlord misses an outside delivery date and you terminate, a term covered in how long a flex space lease should be.

When does a Texas landlord have to return a commercial deposit?

Within 60 days after you surrender the premises and give the landlord a written forwarding address, under Section 93.005 of the Texas Property Code, Chapter 93. Deductions need a written, itemized list, and normal wear and tear, meaning deterioration from the intended use including breakage from age, cannot be deducted.

A landlord who keeps a deposit in bad faith owes $100, three times the amount wrongfully withheld, and your attorney's fees, and missing the 60-day deadline is presumed bad faith. On a NNN lease, ask how the final year's tax and CAM reconciliation gets settled, because that true-up is a charge you owe under the lease and it can come out of the deposit.

How do security deposits work at ScaleUp's Rockwall and McKinney parks?

We size the deposit on credit and finish-out like any landlord, and our standard is [[CONFIRM: ScaleUp standard security deposit, in months and whether figured on base rent or base plus NNN]]. On pre-leased units, [[CONFIRM: whether ScaleUp collects the deposit at signing or at delivery, and whether it is fully refundable if delivery misses the outside date]].

We build with 100% equity and no bank debt, which is what riba-free means in practice, so no mortgage lender stands behind either park with a foreclosure that could leave your deposit behind. The towns around both parks are growing fast, and growth brings young companies: Princeton, about ten miles east of our McKinney site, grew 18.1% and Forney, just south of Rockwall County, grew 8.5% from July 2024 to July 2025, per the U.S. Census Bureau's Vintage 2025 city estimates.

FAQ

Is there a limit on how much a commercial landlord in Texas can charge for a security deposit?

No. Texas sets no cap on a commercial security deposit, so the amount is whatever the lease says, and one to two months of rent is the common range for small-bay flex space. Newer businesses and units with large finish-out allowances tend to be asked for more.

How long does a landlord have to return a commercial security deposit in Texas?

Sixty days after you surrender the premises and give the landlord a written forwarding address, under Section 93.005 of the Texas Property Code. Any deductions must come with a written, itemized list, and normal wear and tear cannot be deducted.

Can you use your security deposit as your last month's rent?

No. Section 93.010 of the Texas Property Code bars a commercial tenant from withholding last month's rent on the grounds that the deposit covers it, and a tenant who does so is presumed to act in bad faith and can owe three times the rent withheld plus the landlord's attorney's fees.