A commercial lease addendum adds to an existing commercial lease, modifying or expanding upon the current contract.
Landlords must correctly write an addendum for it to be legally binding and enforceable. They also need to acquire the tenant’s signature.
- What Is a Commercial Lease Addendum?
- When to Use an Addendum to a Commercial Lease
- Why Use an Addendum to a Commercial Lease Agreement
- How to Write an Addendum to a Commercial Lease Agreement
- Commercial Lease Addendums for Space and Property Improvements
- Commercial Lease Addendum Sample
- Frequently Asked Questions
What Is a Commercial Lease Addendum?
A commercial lease addendum adds to an existing commercial lease agreement. It contains modifications or additions but doesn’t disturb the remaining terms in the original contract.
Other changes may be necessary because you, as the landlord, must clarify the terms of the commercial lease. You can also use an addendum to address elements the original lease agreement doesn’t mention.
A tenant or a landlord can initiate the desired additions, but both parties must agree to the established terms to go into effect.
When to Use an Addendum to a Commercial Lease
Many situations may call for an addendum to a commercial lease. 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 aren’t limited to:
- Extending the lease term
- Making changes to commercial real estate financing deals
- Clarifying payment terms
- Granting renewal options
- Reassigning expense obligations
You can add an addendum to your contract 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.
It would be best if you always put any changes to a lease in writing. Doing so helps avoid any questions about what the parties agreed to.
How to Write an Addendum to a Commercial Lease Agreement
Follow the steps below to write a commercial lease addendum:
Step 1 – Fill Out the Date of the 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 the Date of the Commercial Lease Agreement
Write the effective date of the original commercial lease agreement to which this addendum references.
Step 4 – Enter the Property Address
Provide the complete street address of the rental property.
Step 5 – Describe the 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.
Clarify that you’re only implementing the proposed changes and aren’t changing any of the terms from the original agreement.
Step 6 – Obtain the Proper Signatures
Both the landlord and tenant will sign the addendum.
Commercial Lease Addendums for Space and Property Improvements
A tenant’s business needs may change as their lease progresses with a landlord. A landlord can create an addendum to reduce or expand the space a tenant can use as part of their commercial lease agreement.
A landlord may also add specific improvements to the property and document them within an addendum. Some of these improvements could include:
- New decor and lighting
- Building ramps and other accessibility improvements
- New cubicles or offices
- Updated signage
- Repairs
Commercial Lease Addendum Sample
View a sample of our commercial lease addendum template below. Download it as a PDF or Word file:
Frequently Asked Questions
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:
- Doesn’t have the signature of a necessary party
- Violates contract law
- Includes terms that violate state or federal law
- Fails to reference the original lease agreement
