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OTHER NAMES Commercial Real Estate Lease Agreement Commercial Lease Contract Commercial Property Lease Business Lease Office Space Lease

What is a Commercial Lease?

If you are a landlord, you can make and sign Commercial Leases to protect yourself when offering commercial rental property to business tenants. By agreeing to this contract, you and the other signer will be more likely to have the same set of expectations. When ready, you can tap or click on "Make document" to take a closer look at the sample Commercial Lease. This lease is suitable for office space, restaurants, retail space, industrial real estate, warehouses and other business locations.

When to use a Commercial Lease Agreement:

  • 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.

Sample Commercial Lease Agreement

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COMMERCIAL LEASE

 

 

This Lease Agreement (this "Lease") is dated as of , by and between ("Landlord"), and ("Tenant"). The parties agree as follows:

 

PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant (the "Premises") located at , , .

 

TERM. The lease term will begin on and will terminate on .

 

LEASE PAYMENTS. Tenant shall pay to Landlord Lease payments shall be made to the Landlord at , , . The payment address may be changed from time to time by the Landlord.

 

All security deposits shall be held by the Landlord for the Tenant in a bank, credit union, or depository institution which is insured by an agency of the federal government. Security deposits shall not be commingled with other funds of the Landlord. All security deposits shall be held in a trust established by the landlord and deposited in a bank, credit union, or depository institution account in the name of the trustee. Any interest earned on a security deposit shall be the property of the Landlord.

 

POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to Landlord on the last day of the term of this Lease, unless otherwise agreed by both parties in writing. At the expiration of the term, Tenant shall remove its goods and effects and peaceably yield up the Premises to Landlord in as good a condition as when delivered to Tenant, ordinary wear and tear excepted.

The following furnishings will be provided: PARKING. Tenant shall be entitled to use parking space(s) for the parking of the Tenant's customers'/guests' motor vehicle(s).

 

PROPERTY INSURANCE. Landlord shall be named as an additional insured in such policies. Tenant shall deliver appropriate evidence to Landlord as proof that adequate insurance is in force issued by companies reasonably satisfactory to Landlord. Landlord shall receive advance written notice from the insurer prior to any termination of such insurance policies. Tenant shall also maintain any other insurance which Landlord may reasonably require for the protection of Landlord's interest in the Premises. Tenant is responsible for maintaining casualty insurance on its own property.

in a total aggregate sum of at least . with personal injury limits of at least for injury to one person, and for any one accident, and a limit of at least for damage to property. except that the lease installment payments shall be per

MAINTENANCE. Landlord shall have the responsibility to maintain the Premises in good repair at all times.

MAINTENANCE. Tenant shall have the responsibility to maintain the Premises in good repair at all times during the term of this Lease.

MAINTENANCE.

 

Landlord's obligations for maintenance shall include:

- the roof, outside walls, and other structural parts of the building

- the parking lot, driveways, and sidewalks, including snow and ice removal

- the sewer, water pipes, and other matters related to plumbing

- the electrical wiring

- the air conditioning system

-

- all other items of maintenance not specifically delegated to Tenant under this Lease.

 

Tenant's obligations for maintenance shall include:

- the roof, outside walls, and other structural parts of the building

- the parking lot, driveways, and sidewalks, including snow and ice removal

- the sewer, water pipes, and other matters related to plumbing

- the electrical wiring

- the air conditioning system

-

- all other items of maintenance not specifically delegated to Landlord under this Lease.

UTILITIES AND SERVICES. Landlord shall be responsible for all utilities and services incurred in connection with the Premises.

UTILITIES AND SERVICES. Tenant shall be responsible for all utilities and services incurred in connection with the Premises.

UTILITIES AND SERVICES.

 

Landlord shall be responsible for the following utilities and services in connection with the Premises:

- electricity

- water and sewer

- gas

- heating

- garbage and trash disposal

- janitorial services

- telephone services

-

 

Tenant shall be responsible for the following utilities and services in connection with the Premises:

- electricity

- water and sewer

- gas

- heating

- garbage and trash disposal

- janitorial services

- telephone service

-

 

Tenant acknowledges that Landlord has fully explained to Tenant the utility rates, charges and services for which Tenant will be required to pay to Landlord (if any), other than those to be paid directly to the third-party provider.

Landlord shall pay all real estate taxes and assessments for the Premises.Tenant shall pay all real estate taxes and assessments which are assessed against the Premises during the time of this Lease.Landlord Tenant

 

LATE PAYMENTS. For any payment that is not paid within days after its due date, Tenant shall pay a late fee of .LATE PAYMENTS. For each payment that is not paid within days after its due date, Tenant shall pay a late fee of per day, beginning with the day after the due date.LATE PAYMENTS. For each payment that is not paid within days after its due date, Tenant shall pay a late fee equal to % of the required payment. % of the most recent rate preceding the Holdover Period. Such holdover shall constitute a month-to-month extension of this Lease.the normal payment rate set forth in the Renewal Terms paragraph.

 

CUMULATIVE RIGHTS. The rights of the parties under this Lease are cumulative, and shall not be construed as exclusive unless otherwise required by law.

The parties will attempt to resolve any dispute arising out of or relating to this Agreement through friendly negotiations amongst the parties. If the matter is not resolved by negotiation, the parties will resolve the dispute using the below Alternative Dispute Resolution (ADR) procedure.The parties will attempt to resolve any dispute arising out of or relating to this Agreement through friendly negotiations amongst the parties. If the matter is not resolved by negotiation, the parties will resolve the dispute using the below Alternative Dispute Resolution (ADR) procedure, unless the dispute or controversy meets the requirements to be brought before California's small claims court or is an unlawful detainer proceeding.

 

NOTICE. Notices under this Lease shall not be deemed valid unless given or served in writing and forwarded by mail, postage prepaid, addressed as follows:

 

LANDLORD:

 

,

 

TENANT:

 

, , , ,

 

Such addresses may be changed from time to time by any party by providing notice as set forth above. Notices mailed in accordance with the above provisions shall be deemed received on the third day after posting.

 

GOVERNING LAW. This Lease shall be construed in accordance with the laws of the .

 

ENTIRE AGREEMENT/AMENDMENT. This Lease Agreement contains the entire agreement of the parties and there are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease. This Lease may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.

 

SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Lease is invalid or unenforceable, but that by limiting such provision, it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

 

WAIVER. The failure of either party to enforce any provisions of this Lease shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Lease.

 

BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the benefit of both parties and their respective legal representatives, successors and assigns.

 

LANDLORD:

 

 

 

By: Date:

,

 

 

TENANT:

 

 

 

By: Date:

,

 

If the property being leased has a total floor area of more than 10,000 square feet, the Landlord must provide the Tenant(s) with data on the buildings energy performance, operating characteristics and energy use.

 

State laws vary on the amount that may be charged as a late payment fee. Consult an attorney to determine whether limits apply in your state.

 

Consult an attorney to determine whether the laws of your state limit the amount that may be charged for checks returned due to non-sufficient funds.

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Commercial Lease Agreement FAQs

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  • Will my Commercial Property Lease be legally binding under local law?

    As with any legal contract, a Commercial Property Lease will not be legally binding until everyone has signed it. Different from a generic Commercial Lease template that you may download elsewhere, your rental contract comes with the option of Document Defense®, so an attorney in our network can review the situation and take action if you need to demand payment or experience another issue.

  • What type of landlord needs to make Commercial Property Leases?

    Regardless of whether the rental is short- or long-term, creating documentation of your commitments to those renting from you is important. The following benefits might inform your decision-making:

    • The landlord and tenant(s) know what they are responsible for
    • All parties know when rent payments are expected
    • There are no surprises about how long the rental will last

    If you don't have a Commercial Property Lease, you and the tenant may suffer one or more of these unwanted issues: not being paid on time, unexpected modifications, and, unfortunately, very little recourse if something goes wrong.

  • What is included in a Commercial Lease Agreement?

    The details that you should plan to include in your Commercial Lease are:

    • The address and description of your commercial property
    • Your tenant's contact information
    • How rent payments should be made
    • How long the tenancy will last and whether it will auto-renew
    • What kind of amenities and/or utilities will be included
    • Who will be responsible for property taxes

    As you may expect, Commercial Leases made with Rocket Lawyer also include rules around late rent, early termination, and acceptable use of the property. While building your document, you'll also be able to add more specifics related to furnishings, insurance requirements, remodeling, and maintenance procedures. With the document tool, you are able to add further custom editing, as needed.

  • What would I traditionally have to pay for a Commercial Lease?

    Fortunately, you will not have to hire a traditional lawyer to get your agreement in writing. With the document tools on Rocket Lawyer, anyone can produce a Commercial Lease for free online today. Your agreement is built section by section, so you can be certain that it contains all of the appropriate information. Simply tap or click on the button labeled "Make Document" to begin.

  • Will I have to take additional actions after my Commercial Lease is made?

    Upon completing this Commercial Lease, you will be able to retrieve it from your account at any time and place. Feel free to take any of the following actions with your contract: making edits, getting electronic signatures with RocketSign®, printing it out, or downloading it as a Word or PDF document. Attached alongside each Commercial Lease, there will be a series of helpful tips to follow while finalizing your document. As a best practice, you should give a copy of your signed agreement to the other party. You should also feel free to browse our library of real estate legal documents .

  • How do local property rental laws affect my Commercial Lease?

    Laws often change over time. If you have any concerns or hesitations related to property rental laws, you can talk to a lawyer today. Getting a legal professional to check your Commercial Lease could be fairly time-consuming. Sometimes a lawyer will not even accept requests to review a rental contract if they didn't work on it. In the event that an attorney does decide to provide feedback about your contract, they would still charge their standard fees to do it. An easier alternative would be via attorney services at Rocket Lawyer. If you become a Premium member, you can get your documents looked at by an experienced real estate attorney. Whether you decide to produce another Commercial Property Lease or other legal documents from our library, Rocket Lawyer is here for you.

  • How long do Commercial Lease Agreements last?

    As a commercial property owner, it can be beneficial to offer a multi-year lease. Common durations are three, five, or even ten years. In exchange for committing to a long lease, savvy tenants may expect or ask for a discount on the monthly rent. As you consider offering a multi-year lease, here are a few questions to keep in mind:

    • How well-established is the tenant business? Is it likely to remain active for the full lease term?
    • How long can I manage to pay my mortgage if the tenant doesn't pay rent?
    • Does location matter to the tenant and would they pay as a result?
    • What kind of alterations or improvements to the property are being requested? How much are you willing to pay for as the property owner?
    • What will happen if the tenant needs to move from the property before the end of the lease?
  • What is a typical Commercial Lease Deposit?

    Deposit amounts for commercial properties vary. Most property managers will ask for the equivalent of about one to two months of the rent amount. The amount charged often varies by the market, tenant's credit and the cost of improvements (or custom alterations) before occupying. For the most part, the owner of the property typically will want to be able to cover potential losses if the tenant defaults or damages the property. Some may even choose to charge as much as six times the rent for the deposit in certain markets. Unlike residential leases, there are often no legal limitations on what can be charged for the deposit.

  • Do I need to use a commercial broker?

    The choice is up to you. While there may be benefits from working with a commercial broker, you do not always need to work with one. If you only have one or two properties, you can likely handle them yourself and save on fees. However if you have a lot of properties to manage, you may benefit from hiring a broker to help you find tenants and conduct negotiations.

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