FREE 35+ Commercial Lease Agreement Samples in PDF | MS Word | Google Docs | Pages

There may be a need for you to rent a place that is more suited for business. In this case, you would need to enter into an agreement with the owner of the location through a commercial lease agreement. The sample agreements below would come in handy in these situations.

Commercial Lease Agreement Template

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One of the main things to consider in doing business is the place. Any business would need to have a place to conduct business to. This location must be at a strategic position so that it attracts more customers. But when your place is not desirable for business, you would need to find somewhere that is.

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What Is a Commercial Lease Agreement?

Finding the perfect location for your business is a tough decision to make. You may have a place of your own but is not a good location for doing business or you have found the perfect location but it is owned by another person. In the case of the latter, you would need to rent that space. When renting a commercial property, you need to have an contract with the owner in place. A commercial lease agreement is an agreement between the owner of a business property and a company or individual that wants to rent the property for business purposes.

The owner of the property is the lessee and the business or individual renting it is the lessor. While some business choose to buy the property, most would just rent it in order to save money. You may think that a commercial lease is no different than a residential lease but there are actually quite a number of differences between the two. Because of the nature of a commercial lease, they are more complex than the residential ones and they need to be dealt with carefully in order to achieve a smooth working relationship between lessee and lessor.

Commercial Lease versus Residential Lease: A Comparison

A residential lease is the rental of private property for residential use. A commercial lease on the other hand is the rental of a property for business use. While you would normally think that there are no differences between the two except for a few variations, there are actually significant differences that make dealing with them very much different. Listed below are some notable differences between the two.

• Legal Protection. The basic need of having a roof over one’s head is a very big factor in determining the protection delivered to tenants from the law. Hence, there is greater legal protection bestowed on a residential lease. The government often believes businesses are more knowledgeable of what they are going into and have good bargaining power on the property so the legal protection allowed for residential leases often does not translate to commercial leases.
• Terms. Landlords can offer just about the same residential lease to all the tenants living in their property as there are no significant differences among the tenant needs. This, however, is not applicable to commercial leases. Businesses often have specialized needs and so the lease you give them needs to be specifically tailor-made to fit their business needs.
• Negotiability. For a residential lease, often the terms written on the lease are final. If you insist though, you can negotiate for certain changes but these are often limited to payment terms, length of the lease, etc. Commercial leases, however, have terms that are highly negotiable.
• Length of Lease. A residential lease often expires after a year. A commercial lease, on the other hand, has longer length of lease, often lasting a number of years. Once the lease expires, however, it can be easily renewed for both commercial and residential leases.

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When to Use a Commercial Lease Agreement

Having a strategic location is important for any business. The location often spells the difference between a successful business and a failed one, so thought must be put into choosing the perfect location for your business. But when the place you own doesn’t tick all the necessary items in your perfect location checklist, you would need to rent a place that does. A commercial lease agreement is now in order. A commercial lease agreement is used when an individual or a business entity wants to rent out a commercial property for business use. You may be wondering when to use one. Here are some of the situations that warrant the use of these documents.

• You own a property that could be converted to a property for rent.
• You own a property that will be rented by a tenant for business use.
• A landlord that wants to lease his or her commercial property but does not have a lease form.

Components of a Commercial Lease Agreement

Commercial lease agreements are necessary tools for any landlord that own commercial property. These documents serve as their protection against disputes that could happen in the course of the landlord-tenant relationship, including non-payment of rent, breach of contract, and so on. When making a commercial lease agreement, here are some of the things that need to be found for it to be an effective legal document that does its intended purpose.

• Permitted use – There are many types of commercial properties around and some are better suited for use of some kind. For example, if your property doesn’t have a place for a kitchen, you don’t permit the property to be used as a food establishment. To have a smooth transaction with your potential clients, enumerate the uses that are permitted for the space.
• Exclusive rights – When a certain kind of business is already renting your property, you must not let a business of the same kind rent another space in that property.
• Insurance responsibilities – Determine who will be responsible for having the property insured.
• Maintenance responsibilities – It is typically the landlord that is responsible for dealing with property maintenance. Be sure to state who is responsible for this part.
• Payment and renewal – Spell out the payment details and how to deal with lease renewal.
• Special provisions – There are certain things that will be done to the property that need to be discussed such as remodeling the property, how to deal with disputes, etc.

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Tips in Writing a Commercial Lease Agreement

Because of its legal nature and the position of the parties involved, commercial lease agreements are very important documents and the parties involved need to carefully think of the provisions to include in them. They need to come up with provisions and terms that all parties agree with and that would provide benefits to all. Writing a commercial lease agreement is very much like writing any agreement in general. You just have to put the necessary provisions specific to a commercial lease, which were discussed above. Here are some useful tips you can use in making a commercial lease agreement.

• Write in the correct agreement format. An agreement doesn’t become a contract unless it is written in the right format. Hence, it needs to be written carefully so that the document is legally enforceable. As the relationship forged in a commercial lease agreement is huge, involving businesses and huge amounts of money, think carefully before writing and be sure to write in the proper format.
• Be comprehensive. The terms you write in the commercial lease agreement need to be complete. The goal of any agreement is to be as airtight as possible so there are no legal loopholes in the document. Carefully spell out the payment terms, security deposit that needs to be paid, maintenance terms, and all other special provisions.
• Examine carefully the details of the agreement. As the agreement is the document by which your business operations will revolve in, you would be legally bound to adhere to it. Hence, you must carefully write the details of the agreement. There might be complicated insurance provisions there that needs to be checked first.
• Write a use and exclusives clause. A use and exclusives clause allows you to write down how tenants can and can’t use the property. This is important because you can restrict the tenant from doing anything that is in conflict with you and your interest.
• Proofread the document. As a commercial lease agreement is a legal document, you would need to check it for grammar and spelling errors. Errors such as these could change the meaning of certain words and sentences, which is a big no for any legal document.
• Seek legal advice. The best judge for the validity of any agreement is a lawyer. When you have finished your draft of the commercial lease agreement, be sure to seek the help of an attorney. Let them read the agreement and discuss relevant terms that could provide big legal implications.

A commercial lease agreement is an agreement between a landlord and a tenant, whereby the tenant intends to rent the landlord’s property for business purposes. This type of lease agreement contains some key differences from a residential lease agreement and must thus be considered a different type of agreement. This article offers commercial lease agreements ranging from commercial space lease agreements to commercial vehicle lease agreements. If you have a rental property for lease to business entities, the commercial lease agreements found here would be perfect for you, so download them now.