A Commercial lease renewal agreement is a legal document used to renew an existing commercial lease agreement between a landlord and a tenant of a property like a retail store, office, industrial facility, or warehouse. It outlines the new duration of the lease, any changes to the rental terms, and other conditions that both parties agree upon.
Market Rent Review
When renewing a commercial lease, both the landlord and tenant should consider conducting a market rent review before agreeing to the renewal terms. This ensures that the rental rates remain fair and competitive based on current market conditions.
A market rent review involves evaluating the current market rental rates for similar properties in the area and adjusting the lease rate accordingly.
How to Fill In
1. Date and Parties
- Date: Enter the current date when the renewal agreement is being made.
- Landlord and Tenant Information: Include the full names of the landlord and tenant, specifying whether they are individuals or entities, and provide their respective addresses.
2. Original Lease Agreement Details
- Original Lease Date: Fill in the effective date of the original lease agreement.
- Property Address: Enter the address of the leased property.
3. Renewal Term:
New Lease Term: Specify the new start and end dates for the renewed lease term.
4. Rent Details
- New Rent Amount: If the rent is changing, specify the new monthly rent amount. If it remains unchanged, check the appropriate box.
- Security Deposit: Indicate whether an additional security deposit is required. If so, specify the amount and the deadline for payment.
5. Additional Provisions
- Include any other terms or conditions that are being added to the lease renewal. This could cover maintenance responsibilities, utilities, or other specific agreements between the parties.
- You may also use this section to document any changes from the original commercial lease agreement, such as rent payment methods or rent due dates.
6. Execution of Agreement
Both the landlord and tenant (or their representatives) should sign and date the renewal agreement. Make sure to include printed names and titles if representatives are signing on behalf of entities.
7. Governing Law
State the governing law that will apply to the lease renewal agreement, typically the state where the property is located.
Sample Commercial Lease Renewal Agreement
Download a template in PDF or MS Word below.
