Free Commercial Lease Agreement Template

A Commercial Lease Agreement form is a legal contract that sets the terms and conditions for a landlord and tenant to rent out a space for business use. 

There are other names for a Commercial Lease Agreement, such as: 

• Business Lease Agreement

• Commercial Property Lease Agreement

• Lease Agreement for Commercial Property

• Office Lease Agreement

The legal document covers terms similar to a residential lease agreement, such as rent and maintenance. 

However, it also goes over how the tenant will pay common area maintenance, insurance as well as real estate taxes that are specific to commercial leases. 

Use our printable Commercial Lease Agreement template to create your mistake-free document in minutes. 

Types of Commercial Lease Agreements

There are a few types of Commercial Lease Agreements. Each type is related to the base rent and operating costs that the tenant has to pay. 

Familiarize yourself with the different types of Commercial Lease Agreements:

• Net: In this type of agreement the tenant must pay property taxes and insurance, in addition to standard area maintenance since operating costs are not part of the rental rate. 

• Modified Gross: Both you and the tenant agree on and share the operating costs. 

• Percentage: The base rent and monthly percentage of gross income from the business that is located in the property are paid to the landlord.

• Full Service: The rental rate covers all property operating expenses, such as utilities, maintenance, and real estate taxes. You may also insert provisions giving them the right to transfer any future hikes in operating expenses to the tenant.

When creating a simple Commercial Lease Agreement, it’s necessary to include certain clauses in the contract. Without these clauses, you risk your contract being considered invalid or illegal in certain circumstances.

The clauses include:

• Americans with Disabilities Act (42 U.S. Code §12183): Commercial tenants that offer “public accommodation” or have a workforce of 15 or more are obligated by the Americans with Disabilities Act (ADA) to follow all handicap access guidelines. The only exception to this rule is for properties that were not constructed or renovated after 1992. 

• Hazard Waste (42 U.S. Code § 6901): This clause obligates the tenant to add their signature stating that they will comply with all federal, state, and local regulations regarding the disposal of hazardous waste. 

Your commercial tenants are required to follow EPA and ADA compliance when operating a business. For that reason, they must be included in your contract.

To understand what’s included in this legal document, we have included a sample Commercial Lease Agreement below. 

Review the example to know how to structure your contract correctly.

Each state has governing laws that set out requirements for creating and enforcing a Commercial Lease Agreement. 

Reference your state’s law in the table below.

To create a detailed agreement, it’s critical to have all the essential terms of a Commercial Lease Agreement in place. 

This includes information related to each party and the terms and responsibilities of the landlord and tenant.

The following details should be added to your Commercial Lease Agreement: 

• The property’s details

• The permitted use of the rental property 

• The personal information of each party

• The lease terms, such as the lease type, length, and start and end date

• Whether the tenant can assign or sublease the property

• The rent details, including the amount, payment frequency, and whether the tenant’s lease will be gross, net, or triple net

• The responsibility for utilities and insurance payments

• Security deposit information

• Information regarding improvements to the property 

• Maintenance responsibilities

• Termination clauses

• Additional fees or expenses

• Insurance requirements for the property

• Each party’s signature

By including all of this information you’ll have a secure and legally valid document. 

As a landlord or even as a tenant looking to lease a commercial property, it's important to have a well-drafted Commercial Lease Agreement. 

This legally binding document must carefully set out the terms and conditions of the lease, outlining the rights and obligations of both parties. 

Here's a step-by-step guide on how to write a Commercial Lease Agreement:

1. Identify the parties: Start by clearly identifying the parties involved in the lease agreement. This should include the landlord's name and address, as well as the tenant's name and address.

2. Describe the property: Describe the commercial property being leased, including its address, square footage, and any other relevant details.

   

3. Define the lease term: Include the start and end dates of the agreement. Be sure to also include any options for renewal or extension.

   

4. Set the rent and security deposit: Outline the rent amount, how often it's due, and any late fees or penalties for non-payment. Also, specify the amount of the security deposit required and how it will be returned at the end of the lease.

   

5. Include any additional fees: Ensure that any additional expenses are added, if there are any, such as property taxes or maintenance costs.

6. Specify permitted uses: State the allowed uses for the commercial property, including any restrictions on use, such as zoning laws or noise regulations.

   

7. Outline tenant improvements: If the tenant is allowed to make improvements to the property, be sure to outline the specific requirements and who will be responsible for the costs.

   

8. Mention insurance requirements: Define the insurance obligations for the property, including liability and property insurance, and who is responsible for paying the premiums.

   

9. Outline maintenance responsibilities: Clearly outline the maintenance responsibilities for both the landlord and tenant, including those responsible for repairs, upkeep, and cleaning.

   

10. Include any termination clauses: Mention any termination clauses, including conditions for early termination or default, and what happens to the security deposit in these scenarios.

    

11. Sign and date the agreement: Make sure to have both parties sign and date the Commercial Lease Agreement, and provide copies to each party.

    

Use our Commercial Lease Agreement template to guarantee that none of these steps are left out without having to pay excessive legal fees.

Whether you are a tenant or a landlord it’s a great idea to know about other legal documents that you can use related to a lease. 

These similar documents are indispensable if you are a landlord:

• Residential Lease Agreement

• Rental Application

• Eviction Notice

• Notice to Vacate Letter

• Not Renewing Lease Letter

• Rent Receipt 

You can find and easily download these documents for free on LawDistrict.