Generate Commercial Lease Agreement
A Commercial Lease Agreement is a formal document between a landlord and a tenant to rent property with the intention to operate a business on said property. Properties can include: a simple office, an entire building, an independent retail store, a new restaurant, or even a large industrial warehouse.
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Answer simple questions to generate your personalized Commercial Lease Agreement.Last Updated March 2026
What is a Commercial Lease Agreement?
A Commercial Lease Agreement is a formal document between a landlord and a tenant to rent property with the intention to operate a business on said property. Properties can include: a simple office, an entire building, an independent retail store, a new restaurant, or even a large industrial warehouse. If the property is part of an entire building, the landlord can address special concerns and duties about common areas like parking spaces or lobby areas.
When to use a Commercial Lease Agreement
Commercial Lease Agreements are commonly used in the following situations:
Starting a business: When renting space to open or relocate a business for the first time.
Expanding operations: When a growing business needs additional or larger commercial space.
Protecting both parties: To establish clear rights and obligations for the landlord and tenant regarding rent, maintenance, and permitted uses.
Defining lease terms: To set rent amounts, payment schedules, and the duration of the tenancy.
Multi-tenant properties: When a landlord needs to address shared spaces, CAM fees, and individual tenant responsibilities.
What should I include in my Commercial Lease Agreement?
Property description: The full address and a description of the commercial space being leased.
Landlord and tenant information: Full legal names and contact details of both parties.
Lease term: The start and end dates of the lease, or whether it is month-to-month.
Rent and payment terms: The monthly rent amount, due date, late fees, and any scheduled rent increases.
Permitted use: A clear description of what type of business or activity will be conducted on the premises.
Security deposit: The amount of the deposit and conditions for its return.
Frequently Asked Questions
In a gross lease, the tenant pays a flat rent and the landlord covers most operating expenses such as taxes, insurance, and maintenance. In a net lease, the tenant pays a base rent plus some or all of the operating expenses. A triple net (NNN) lease requires the tenant to pay base rent plus property taxes, insurance, and maintenance costs.
Yes. Unlike residential leases, commercial leases are highly negotiable. Both parties can negotiate rent amounts, lease length, renewal options, tenant improvement allowances, permitted uses, and many other terms. It is strongly recommended that both parties consult with an attorney before signing a commercial lease.
CAM stands for Common Area Maintenance. CAM fees are charges paid by tenants to cover their share of costs for maintaining shared spaces like lobbies, hallways, parking lots, and landscaping. CAM fees are typically charged in addition to base rent and are common in multi-tenant commercial properties.
Commercial lease terms vary widely. Small businesses often sign 1 to 3 year leases, while larger operations may negotiate 5 to 10 year terms or longer. Longer lease terms generally give tenants more leverage to negotiate favorable rent rates or tenant improvement allowances. Month-to-month arrangements are also possible for short-term needs.
Responsibility for repairs and maintenance depends on the type of lease. In a gross lease, the landlord typically handles most maintenance. In a net lease, the tenant takes on more responsibility. In a triple net lease, the tenant is usually responsible for virtually all maintenance and repair costs. The lease agreement should clearly specify each party's obligations.
