Generate A Commercial Lease Agreement with LegalZone

Generate a Commercial Lease Agreement with LegalZone 

What Is a Commercial Lease Agreement? 

Commercial lease agreements are also known as commercial property leases, business leases, industrial leases, commercial real estate leases, and office space leases.

No matter how it’s phrased, this agreement is a contract between a landlord and a tenant who intends to use the property for business purposes.

When Is a Commercial Lease Agreement Required? 

When a commercial property is rented from an owner to a tenant, a commercial lease agreement needs to be drafted. It doesn’t matter if you’re renting a room in a large building or the entire building. This protects both parties for the duration of the contract.

Commercial properties include industrial spaces, offices, and retail properties.

What Are the Types of Lease Terms for Commercial Properties? 

The terms of the commercial lease agreement depend on the rental duration:

  • Fixed End Date Lease: the contract has a definitive end date. Unless otherwise specified in the agreement, the rental terms or price cannot be changed until the lease is up.
  • Fixed Number of Weeks/Months/Years Lease: the lease grants the tenant the space for a certain amount of time. Like a fixed end date, the terms can’t be changed until the lease ends.
  • Periodic Lease: the lease continues on a time-to-time basis until canceled by one of the parties. The most common periodic lease structure is month-to-month. Changes can be made to the rental agreement between periods if proper notice is given to the tenant.
  • Automatic Renewal Lease: the lease continues unless canceled by either party. If no indication is made that either party wants to exit the contract, the contract with the same terms will automatically renew itself.

What Should Be Included in a Commercial Lease Agreement? 

A commercial lease must consist of:

  • The address of the property
  • The price of monthly rent (usually calculated by square footage)
  • The amount for the deposit
  • The business intention for using the space
  • The start and end dates of the lease
  • The terms for terminating the lease
  • The information for all parties
  • Any additional conditions you want to add

If there are any provisional terms or other things both parties agree on, it’s good to list them in the rental agreement to have documented proof of the negotiations.

What Is a Landlord Responsible For in a Commercial Lease? 

The person who owns the property and is renting it out in pieces or as a whole is responsible for:

Þ   Ensuring that the proposed business use is allowed in the space leased

Þ   Deciding whether that business will have exclusive use (If you’re a landlord filling up a mall, will you only let one pretzel stand set up shop?)

Þ   Determining the terms of the lease

Þ   Mapping out what percentage of taxes, utilities, and operating costs everyone will pay

Þ   Offering parking accommodations (if applicable)

Þ   Improving the building at the request of the tenants

What Is the Most Common Commercial Lease? 

The Triple Net Lease (NNN Lease) is the most common commercial lease agreement. With an NNN Lease, the rent paid by the tenant doesn’t include operating expenses such as utilities, maintenance, property taxes, insurance, and property management.

Creating Your Commercial Lease Agreement with LegalZone 

LegalZone makes it easy to draft a commercial lease agreement within minutes. If you have more questions about what you should include in your commercial lease agreement, get started to day with our commercial lease templates on

Signing a commercial lease agreement should be a streamlined, affordable process. Whether you’re the owner or the renter, we want to help you protect your rights.

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