A Commercial Lease Agreement is a contract between a landlord and a tenant that allows the tenant to operate a business on the landlord’s premises for rent.
- What is a Commercial Lease Agreement?
- How is a Commercial Lease Different From a Residential Lease?
- When is a Commercial Lease Agreement Most Commonly Used?
- What are Landlords and Tenants Responsible for in a Commercial Lease?
- How Long Do Commercial Leases Last?
- Where Can I Get a Commercial Lease Agreement Form?
What is a Commercial Lease Agreement?
When a tenant plans to operate a business on a landlord’s property, a commercial lease agreement allows both parties to formalize that relationship through a legally recognized and binding contract.
Commercial lease agreements are also known as:
- Business Leases
- Industrial Leases
- Office Space Agreements
- Standard Commercial Leases
How is a Commercial Lease Different From a Residential Lease?
Unlike a residential lease agreement, a commercial lease agreement is for business purposes rather than residential living.
The leased property can be a simple office, an entire building, an independent retail store, a new restaurant, or even a large warehouse for industrial purposes such as a manufacturing factory or self-storage facility.
If the leased property is a part of a larger building, the landlord may address unique concerns and duties about common areas such as parking spaces or garbage disposal.
When is a Commercial Lease Agreement Most Commonly Used?
Landlords can use commercial lease agreements to rent any business-related property including:
- Accounting Firm
- Factory
- Medical Clinic or Health Care Facility
- Restaurant
- Shopping Mall Store
- Warehouse
In addition to traditional businesses, commercial leases are also for renting private land.
What are Landlords and Tenants Responsible for in a Commercial Lease?
Typically, the landlord handles structural repairs, making sure the leased premises are usable.
For instance, the landlord is responsible for fixing the walls, roof, foundation, and other structural elements holding the premises together.
In contrast, the tenant is responsible for repairs and maintenance of mechanical and decorative features, such as plumbing and windows.
How Long Do Commercial Leases Last?
On average, most commercial leases last three to five years and can last anywhere from one to ten years, although short-term leases are less common.
Most landlords want to build long-term relationships with their tenants, so they prefer leases that last at least three years.
Where Can I Get a Commercial Lease Agreement Form?
To create a commercial lease agreement, you can have a lawyer draft one for you or do it yourself using our commercial lease agreement builder and free template.
