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Commercial Lease Agreement Template

A Commercial Lease Agreement establishes the terms for renting business property such as office space, retail stores, warehouses, or industrial facilities. This comprehensive contract protects both landlord and business tenant interests while addressing complex commercial considerations like build-outs, signage rights, and operating expenses.

State Law Compliance

Commercial leases are governed by state contract law and local zoning regulations. Unlike residential leases, commercial agreements have fewer statutory protections, making comprehensive written terms essential for both parties.
  • Compliance with local zoning and permitted uses
  • ADA accessibility requirements
  • Fire and safety code compliance
  • Environmental regulations and disclosures
  • Commercial property tax obligations

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Commercial Lease Agreement

This document includes:

  • Detailed property description and permitted uses
  • Base rent and additional rent (CAM charges)
  • Lease term and renewal options
  • Build-out and improvement provisions
  • Signage and storefront rights
  • Parking and common area usage
  • Insurance and indemnification requirements
  • Assignment and subletting terms
Create Your Commercial Lease Agreement

When to Use This Document

Opening a New Business Location

Secure your business premises with a comprehensive lease that addresses your specific operational needs, from retail hours to equipment installation rights.

Expanding to Additional Locations

Ensure consistency across multiple locations while addressing site-specific requirements like exclusive territory rights or co-tenancy clauses.

Relocating Your Business

Negotiate favorable terms for your new location, including moving allowances, free rent periods, or tenant improvement contributions.

How to Complete Your Commercial Lease Agreement

1

Specify Property and Use Details

Define the exact premises, square footage, and permitted business uses.

💡 Tip: Be specific about your intended use to avoid future disputes over noise, hours, or business activities.
2

Structure Rent and Expenses

Set base rent, percentage rent (if applicable), and allocate operating expenses like CAM charges, taxes, and insurance.

💡 Tip: Understand the difference between gross, net, and triple-net leases to accurately budget occupancy costs.
3

Define Lease Term and Options

Establish initial term length and any renewal options with predetermined rent adjustments.

💡 Tip: Longer initial terms often yield better rental rates, while renewal options provide future flexibility.
4

Address Improvements and Maintenance

Clarify who pays for initial build-out, ongoing maintenance, and future improvements.

💡 Tip: Negotiate tenant improvement allowances or rent concessions to offset build-out costs.
5

Set Operating Requirements

Include hours of operation, signage rights, parking allocation, and any exclusive use provisions.

💡 Tip: Retail tenants should seek exclusive use clauses preventing landlords from leasing to direct competitors.

Frequently Asked Questions

Common Area Maintenance (CAM) charges cover shared property expenses like landscaping, security, and parking lot maintenance. They're typically calculated as your percentage of the total leasable space and can significantly impact your total occupancy cost.

Personal guarantees make you individually liable for lease obligations. New businesses often face this requirement, but try to limit the guarantee's scope or duration, or negotiate for a "good guy guarantee" that ends when you vacate.

Usable square footage is your actual space, while rentable includes your share of common areas. The ratio between them (load factor) typically ranges from 10-20% and directly impacts your cost per usable square foot.

Most commercial leases allow subleasing with landlord consent, but check your specific terms. You typically remain liable for the full lease even when subleasing, so screen subtenants carefully.

This depends on your lease terms. Some improvements become the landlord's property, while others must be removed. Clarify this upfront, especially for expensive specialized build-outs.

Quick Facts

  • Time to Complete: 15-20 minutes
  • Format: Downloadable PDF
  • Cost: Free
  • Legal: Attorney-drafted

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Legal Disclaimer

This tool provides general lease templates and is not a substitute for legal advice. The information provided is for informational purposes only.

For legal advice specific to your situation, please consult with a qualified attorney in your jurisdiction.

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