Free Commercial Lease Agreement Template

Create a Commercial Lease Agreement in PDF format with our easy-to-use template. Safely rent out a property for office, industrial, or retail purposes that meet all legal requirements.

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Last Update September 14th, 2024

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Table of Contents:

What Is a Commercial Lease Agreement?
Commercial Lease Clauses
Sample of a Commercial Lease Agreement
Commercial Lease Agreement by State
What Should Be Included in a Commercial Lease Agreement?
How To Write a Commercial Lease Agreement
Other Real Estate Documents
Commercial Lease Agreement FAQs

What Is a Commercial Lease Agreement?

A Commercial Lease Agreement form is a legal contract that outlines terms for renting space for business use between a landlord and tenant.

A Commercial Lease Agreement is also known as:

Business Lease Agreement
Commercial Property Lease Agreement
Lease Agreement for Commercial Property
Office Lease Agreement

This document includes terms like rent and maintenance, similar to Residential Lease Agreements.

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 several types of Commercial Lease Agreements, each with different rules for rent and operating costs that the tenant has to pay.

Familiarize yourself with the different types of Commercial Lease Agreements:

Net: The tenant pays property taxes, insurance, and maintenance, as these costs are not included in the rent.
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.

Commercial Lease Clauses

A simple Commercial Lease Agreement must include certain clauses. 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 must comply with ADA access guidelines if they offer public accommodation or have 15 or more employees. 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.

Sample of a Commercial Lease Agreement

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.

Commercial Lease Agreement Template Sample

Get a Commercial Lease Agreement Here

Commercial Lease Agreement by State

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.

State	Governing Law
Alabama	§ 7-2A-101
Alaska	N/A
Arizona	§42-5069
Arkansas	§18-17-912
California	§ 7191
Colorado	§ 4-2.5
Connecticut	§830-47a-4b
Delaware	§25-61
Florida	§83.001
Georgia	§11-2A-101
Hawaii	§490:1-101
Idaho	§28-12-303
Illinois	§810-2A
Indiana	§26-1-2.1
Iowa	N/A
Kansas	§84-1-101
Kentucky	§1.010 — 3.275
Louisiana	N/A
Maine	§6017
Maryland	§2A-101
Massachusetts	§2A-511
Michigan	§174-1962-2A
Minnesota	§336.1-102
Mississippi	§75-2A-101
Missouri	§400.2A-101
Montana	§30-2A-101
Nebraska	§2A-102
Nevada	§118C.010
New Hampshire	§382-A:1-203
New Jersey	§12A:1-203
New Mexico	§55-1-101
New York	§2-A-101
North Carolina	§ 25-2A-101
North Dakota	§41-02.1-01
Ohio	§1310.01
Oklahoma	§12A-1-9-101
Oregon	§72A.1010
Pennsylvania	§13-1101
Rhode Island	§6A-1-101
South Carolina	§36-1-101
South Dakota	§57A-2A-101
Tennessee	§47-2A-101
Texas	§2A.101
Utah	§70A-2A-101
Vermont	§9A-2A-101
Virginia	N/A
Washington D.C.	§28:1-101
Washington	§62A.2A-101
West Virginia	§46-2A-101
Wisconsin	§411.101
Wyoming	§34.1-1-101

What Should Be Included in a Commercial Lease Agreement?

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.

How To Write a Commercial Lease Agreement

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.

Follow this step-by-step guide to write a Commercial Lease Agreement:

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.
Describe the property: Describe the commercial property, including address, square footage, and other key details.
Define the lease term: State the start and end dates of the lease, including renewal or extension options.
Set the rent and security deposit: Detail the rent amount, payment schedule, late fees, and security deposit informaiton. Also, specify the amount of the security deposit required and how it will be returned at the end of the lease.
Include any additional fees: Add any extra costs, like property taxes or maintenance fees.
Specify permitted uses: Specify what the property can be used for and mention any restrictions like zoning or noise laws.
Outline tenant improvements: Describe the rules for tenant improvements and who covers the costs.
Mention insurance requirements: List the insurance needed for the property and who pays for it.
Outline maintenance responsibilities: Clearly assign maintenance duties between landlord and tenant.
Include any termination clauses: Include termination conditions and outcomes for the security deposit.
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.

Commercial Lease Agreement FAQs

Learn how a Commercial Lease Agreement works and what to include by reviewing these common questions and answers.

Review the answers to the following frequently asked questions below for a better understanding of the legal document.

How To Terminate a Commercial Loan Agreement

If a Commercial Loan Agreement needs to be ended the actions that must be taken will depend on the party that wishes to terminate the contract.

If you are a tenant that wants to know how to terminate a Commercial Lease Agreement early, the simple option is to make a “buy-out” deal with the landlord.

It’s also important to review the terms of your contract before ending your lease.

What Happens if the Tenant Wants To Change the Commercial Lease Before the End of the Agreement?

If you would like to make any modifications to your Commercial Lease Agreement before the end date, you will need to make an amendment. By using a lease amendment you will be able to officially change some or all of the Commercial Lease Agreement.

Any changes must follow the governing law of your state, the same as the original agreement.

What Part of a Commercial Lease Agreement Refers to How Many Employees May Work on the Premises?

The part of a Commercial Lease Agreement that refers to how many employees may work on the premises is typically included in the “Property Use” or the “Permitted Use” section.

This section outlines the specific activities the tenant is allowed to conduct on the leased property, including the number of employees they are allowed to have on-site.

It may also specify any restrictions on the type of business activities allowed on the property. It is important for tenants to carefully review and understand the permitted use section of the Lease Agreement to avoid any violations and potential legal consequences.