A Commercial Lease is a legally binding agreement negotiated between a landlord, often also a commercial landlord and a business, where the property will be used for business purposes. Generally, the lease includes address of the property, business tenant and landlord contact details, an inventory of fixtures and fittings, terms of the lease, generally as per a residential lease agreement, with some additions.
Additional clauses may include, for instance, guarantor contact details. These agreements may be more or less inclusive of terms of the lease. Commercial leases are generally longer than residential leases, typically between 3-5 years. They commonly have options for a tenant to renew the lease at a predetermined rate.
Commercial real estate is property that is used for business purposes. A landlord leases a property to a tenant in exchange for rent. Commercial real estate includes: office space, buildings, warehouses, medical centers, shopping malls, and restaurants.
This Commercial Lease Contract is applicable when renting any commercial property, including:
Anyone wishing to rent out space for commercial use, or any business seeking to rent commercial space needs a contract to detail the rights and responsibilities of both lessor and lessee.
People who may find this information useful include:
The Lease agreement should include:
If you choose to draft your own commercial lease, you should make sure to include all of the important lease information, including:
If you would like to save time and money in creating your agreement, you can work with a commercial lease template. No matter how you choose to create your agreement, it is a good idea to have it reviewed by legal counsel to be sure that it is legally valid and abides by all the applicable laws.
Both parties should keep a copy of the signed agreement for their records.
You can choose different types of lease terms when leasing your property. Typical terms include:
A commercial lease is a binding legal contract. All terms that the parties agree to be bound by must be included in the lease. Commercial leases do not contain the implied protections that are included in cases involving residential leases.
A landlord must take additional factors into consideration:
A landlord can choose to calculate rent using a few different methods:
The length of a commercial lease depends on whether it is a fixed term or periodic lease. The fixed term lease ends on a specific date is stated in the lease. The periodic lease renews every lease term until the tenant or landlord gives notice to terminate.
Americans with Disability Act (ADA) 42 U.S. Code § 12183 – The ADA requires that any commercial tenants which offer “public accommodation” (such as a restaurant, retail store, etc.) or have at least fifteen (15) employees adhere to all handicap access rules. This rule does not apply to properties that have not been built or had renovations since 1992.
“If the Lessee is using the premises as a public accommodation (e.g. restaurants, shopping centers, office buildings) or there are more than 15 employees, they must provide accommodations and access to persons with disabilities that is equal or similar to that available to the general public. Owners, operators, lessors, and lessees of commercial properties are all responsible for ADA compliance. If the premises is not in compliance with the Americans with Disability Act, any modifications or construction will be the responsibility of the Lessor.”
Resource Conservation and Recovery Act (RCRA) 42 U.S. Code § 6901 – Requires the tenant to sign an agreement stating that they will adhere to any federal, state, or local laws regarding the disposal of hazardous wastes.
“Tenant shall adhere to any and all federal, state, or local laws, ordinances, rules, decrees, orders, regulations, or court decisions relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under, or about the Premises, the Building, or the Property, or soil and ground water conditions, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), the Resource Conservation and Recovery Act (RCRA), the Hazardous Materials Transportation Act, any other law or legal requirement concerning hazardous or toxic substances, and any amendments to the foregoing.”
A Commercial Lease Agreement is a legally binding agreement negotiated between a landlord, often also a commercial landlord and a business, where the property will be used for business purposes. The Lease includes address of the property, business tenant and landlord contact details, an inventory of fixtures and fittings, terms of the lease, generally as per a residential agreement, with some additions.Read More
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