A commercial lease addendum adds to an existing commercial lease, modifying or expanding upon the current contract without changing the existing terms. 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 for them to take effect.
When to Use
Commercial ventures are often subject to change, and 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.
- Adjusting changes in tenant needs or property modifications.
How to Write
Follow the steps below to write a commercial lease addendum:
- Fill Out the Date: Write the date of the addendum to the commercial lease agreement.
- Include Parties’ Information: Provide the full names and current addresses of the parties signing the addendum. If there is more than one tenant, enter the name of each additional one.
- Enter the Date of the Commercial Lease Agreement: Write the effective date of the original commercial lease agreement to which this addendum references.
- Add the Property Address: Provide the complete street address of the rental property.
- Describe the Reason for Addendum: Specify any additions, clarifications, or revisions, such as a lease term extension. Confirm that the proposed changes do not alter any other terms of the original agreement.
- Obtain the Proper Signatures: Both the landlord and tenant must sign the addendum.
Commercial Lease Addendum Sample
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.
