An addendum to a commercial lease agreement adds to an existing commercial lease, modifying or expanding upon the current contract.
Landlords need to properly write an addendum for it to be legally binding and enforceable, which is why using a template for an addendum to a commercial lease is wise.
What Is a Commercial Lease Agreement Addendum?
An addendum to a commercial lease agreement adds to an existing commercial lease agreement.
It contains modifications or additions that change certain portions of the original contract but does not disturb the remaining terms in the original contract.
These additions or modifications can be initiated by either the tenant or landlord but both parties must agree.
Other changes may be necessary because you, as the landlord, need to clarify or alter the existing terms in the commercial lease.
Either way, you need an addendum to a commercial lease agreement to help you get started.
When Do You Use an Addendum to a Commercial Real Estate Contract?
Many situations may call for an addendum to a commercial real estate contract. Commercial ventures are often subject to change.
Landlords must be ready to handle them with legally enforceable documents.
Reasons to use an addendum include, but are not limited to:
- Permitting modifications to the commercial property
- Increasing rent
- Adding new terms to the original agreement
- Changes to commercial real estate financing deals
- Modifying a term contained in the original agreement
You can add an addendum to your contract by using a free commercial lease addendum and referencing your original lease in the new document.
Once filled out and signed, the commercial lease agreement addendum attaches to the lease and becomes a part of the commercial lease agreement.
Why Use an Addendum to a Commercial Lease Agreement
A commercial lease agreement addendum documents in writing the modifications or additions you want to make.
Too many parties trust an oral agreement that may be unenforceable if a later dispute arises.
You should always put any changes to a lease in writing. Doing so helps avoid any questions about what the parties agreed to.
What is in a Commercial Lease Agreement Addendum
When writing your commercial lease agreement addendum, make sure you include the following key information:
- The effective date of the addendum
- The parties who are signing the addendum (i.e., original parties to the commercial lease agreement)
- The title and date of the original commercial lease agreement
- The address or description of the commercial premises
- A recitation of the terms of the addendum, including any changes to the original agreement
- A statement that any terms from the original agreement not explicitly modified by the addendum remain in full force and effect
- Signature lines with name and title for the landlord and tenant
You can use a step-by-step builder to create your commercial lease agreement addendum. Legal Templates is here to help you get started.
How to Write an Addendum to Commercial Lease Agreement
Follow the steps below to write a commercial lease agreement addendum.
Step 1 – Fill Out Date of Addendum
Write the date of the addendum to the commercial lease agreement.
Step 2 – Enter Parties’ Information
Provide the full names and current addresses of the parties signing the addendum.
The first party is the landlord or management company and the second is the tenant. If there is more than one tenant, enter the name of each additional tenant.
Step 3 – Enter Date of Commercial Lease Agreement
Write the effective date of the original commercial lease agreement to which this addendum is referencing and attaching.
Step 4 – Enter Property Address
Provide the full street address of the rental property.
Step 5 – Describe Reason for Addendum
Provide what the landlord and tenant have agreed to add, clarify or revise in the original commercial lease agreement, such as an original lease term extension.
Step 6 – Signatures
Both the landlord and tenant will sign the addendum.
Commercial Lease Agreement Sample
Below is an example of a typical commercial lease agreement addendum.
Commercial Lease Agreement Addendum
Commercial Lease Agreement Addendum download_friendly
Commercial Lease Agreement Addendum Frequently Asked Questions (FAQs)
Is a Commercial Lease Addendum the Same as a Commercial Lease Amendment?
No, a commercial lease addendum adds to or expands upon terms in an existing commercial lease agreement. On the other hand, a commercial lease amendment changes or alters existing terms in a commercial lease in some way.
Is an Addendum Legally Binding?
An addendum to a commercial lease agreement is legally binding when all parties to the original lease agreement agree to and sign the document.
What Makes an Addendum Invalid?
An addendum may be invalid if it: