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Commercial Lease Agreement

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Commercial Lease Agreement

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Learn more about Commercial Lease Agreement

A Commercial Lease is a contract between a landlord and tenant for the rental of a business property. Nearly every business needs an office space or a storefront, and a Commercial Lease allows the landlord to protect his or herself in the event the business owner isn't on the level. Spell out what the property will be used for, who pays property taxes, and what triggers the end of your Commercial Lease.

  • You own commercial property that will be leased to a new tenant.
  • You own commercial property that will be converted to a rental property.
  • You want to lease commercial rental property from a landlord who does not have a lease form.

Commercial Real Estate Lease Agreement, Commercial Lease Contract.

Commercial Leases vary from Residential Leases in a few important ways. Understanding these will let you know if a Commercial Lease is right for you and your property as well as give you the tools you need to craft the best lease for you and your tenant.

Here are some important provisions you can include in your Commercial Lease:

Permitted uses: One of the main ways a Commercial Lease is different than a Residential Lease is that commercial properties have a distinct commercial purpose. You should spell out those permitted uses in your lease agreement. For example, if your building doesn't have a fully-functioning kitchen, you're not very well going to rent the property to a restaurateur. Commercial spaces are all built for very different reasons, after all. Your property might be a high-rise with large file rooms or a small storefront on a busy thoroughfare. Spelling out the permitted uses can save you a lot of hassle down the road.

Exclusive rights: If you're renting a unit in a larger development (such as a storefront in a mall or shopping center), you may want to guarantee your tenant exclusive rights to their particular kind of business. In other words, when you rent to a grocer, you can promise that you won't up and rent the adjacent unit to a different grocer.

Insurance responsibilities: You can decide whether the landlord or the tenant (or some combination of the two) will be responsible for insurance on the property in your Commercial Lease. This includes liability and casualty insurance and is important to spell out up front so both the tenant and the property are protected.

Maintenance responsibilities: Much like what you'd see in an apartment complex, the landlord generally takes care of property maintenance in a Commercial Lease Agreement. You can note this here or, if you and your tenant have a different understanding, you can pass that responsibility to the renting business.

Payment and lease renewal options: You obviously won't be renting out a property without hammering out the financial details. Make sure you how often you collect rent (generally, this is monthly), what the grace period is for late rent (such as three days), and whether or not the lease renews automatically after it runs its course.

Special provisions: Our step-by-step interview process has a set of special provisions you can choose to include in your Commercial Lease. You can choose to allow your tenant to remodel the property, forbid hazardous materials from being stored or used on the premises, decide that all disputes must be decided through arbitration, and more. Depending on the nature of your property, consulting an attorney is encouraged as these provisions can really protect your investment and keep you out of costly legal battles.

If you're considering a Commercial Lease, here are a few other popular documents you may find yourself needing:

If you have any questions about what's right for you and your business, we can connect you with a lawyer for quick answers or a document review.


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