Commercial Lease Agreements

Commercial Lease Agreement is a contract used by property owners and landlords to establish the terms and conditions of an agreement in which their property is rented to a tenant who will be using the property solely for business purposes. The types of property that would be considered as commercial are wide-ranging and can include office buildings, retail spaces, industrial properties, hotels, and many others.

Commercial Lease Agreements by State

What is a Commercial Lease Agreement?

A Commercial Lease Agreement is an essential document used to bind a landlord (lessor) and a business-owning tenant (lessee) into a three (3) to five (5) year contract in which the business-tenant will make routine monthly payments in exchange for use of the property. In comparison to the more widely-used Residential Lease Agreement, Commercial leases are typically unprotected in the eyes of state laws, requiring parties to lean on negotiation and knowledge to ensure they are financially and legally protected during the course of the contract.

How to Write a Commercial Lease

Step 1 – Download

Begin by downloading the Commercial Lease in Adobe PDF, Microsoft Word (.docx), or Rich Text Format (.rtf).

Step 2 – Date & Party Identification

Enter the day, month, and year that the lease is entering into effect, followed by the full name of the landlord and tenant(s).

Step 3 – The Property

  • The full address of the property
  • A detailed legal description of the commercial property

Step 4 – Lease Term

  • Starting date of the lease (day, month, and year)
  • Ending lease date (day, month, and year)

Step 5 – Rent Payments

Enter the full yearly amount that the tenant will be required to pay, followed by the amount in monthly increments (divide it by 12). Below the values, enter the address or location where the payments are to be delivered.

Step 6 – Expenses

Check the box corresponding to the type of expenses that will be paid for by the landlord or tenant (Triple Net, Modified Gross, or Gross)

Step 7 – Damage

In the highlighted field, enter the number of days the tenant has to notify the landlord (lessor) of lease termination in the event the property is damaged by structural defects, casualty, or fire, thereby rendering the property unusable for the tenant’s purpose.

Step 8 – Default

Enter the number of days that can pass after the landlord has issued a notice before the landlord can officially terminate the lease.

Step 9 – Security Deposit

Write the dollar amount of security deposit that is due to the landlord the tenant before or during the signing of the lease.

Step 10 – Notice

In the provided spaces, enter both the landlord and tenant’s addresses in which all notices should be mailed or delivered to.

Step 11 – Brokers

  • If the tenant was not shown the commercial property by a real estate broker or agent, check the first (1st) box.
  • If the tenant was shown the property by a licensed realtor, check the second (2nd) box, write the name of the agent, the state of the agent’s license, and the name of the real estate agency.

Step 12 – Governing Law

Enter the name of the state in which the property is located, the laws of which will have influence over the contents of the lease contract.

Step 13 – Required Disclosures

If the lease does not already contain the state’s specific required disclosures, enter them into the lines provided.

Note: It is highly recommended that an attorney specializing in commercial leases or a licensed realtor overview the lease to ensure it contains all the necessary provisions before signatures are recorded on the contract.

Step 14 – Date of Signing

Input the date the parties are signing the commercial lease.

Step 15 – Signatures

In the fields provided, enter:

  • Witness Signature and Printed Name
  • Landlord Signature and Printed Name
  • Tenant Signature(s) and Printed Name(s)