Commercial Lease Agreement

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Form used to rent commercial real estate, such as a store, office or warehouse, to a tenant.

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A Commercial Lease Agreement is necessary when any Landlord wishes to rent commercial real estate (such as a store, office, warehouse etc.), to a potential Tenant. A written lease agreement is designed to document the terms and condition of the lease agreement between the Landlord and Tenant, and will help avoid possible misunderstandings and problems in the future. If a dispute or misunderstanding does take place dealing with issues such as rent, lease term, repair policies, etc., a Commercial Lease Agreement is useful for clarification or evidence. It is important to note that a business lease is different than a residential lease.

If you are entering into a commercial lease agreement, this legal document will provide you peace mind because it is legally accurate, current, simple to use, and especially created for this type of transaction.

This form does provide you the ability to edit and use the form as many times as you like to satisfy your specific business needs. This Commercial Lease Agreement also includes detailed instructions that guide you through each provision making it simple to easily understand the terms of your legal form.

These Important provisions are included in this Commercial Lease Agreement :
  • Premises and Lease Term: States the location and description of the premises, and length of lease;
  • Rent Amount and Fees: Describes rent payment, when and how rental payments are made, and penalties for late charges or insufficient funds;
  • Taxes: Sets forth the Landlord's and Tenant's responsibilities during the lease term, with respect to tax payments for general real estate taxes, special assessments, personal property, fixtures and equipments;
  • Security Deposit: Indicates the security deposit amount, and the conditions for the return of the deposit;
  • Use: Describes the permitted and prohibited use of the property, conditions for noise, signage, and building rules and regulations;
  • Construction, Damage, and Obligations for Repairs: Sets forth the obligations and procedures for any alterations, improvements, maintenance and repair of the premises;
  • Security, Insurance, and Indemnification: States the parties responsibilities for the security of the tenant or the premises, who shall maintain Insurance and has liability in case of loss, claim or injury;
  • Possession and Inspection: Describes when a Tenant may take possession of the property and Landlord's right to inspection;
  • Default: Explains the events of default and both physical and financial remedies;


  • Protect your Rights and Property, by using our professionally prepared up-to-date forms.

    This lawyer prepared packet includes:
    1. Step by step checklist and information for Commercial Lease Agreement;
    2. Commercial Lease Agreement;
    3. Floor Plan Cover sheet
    State Law Compliant: This form complies with the laws of your state.
    This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.











    Commercial Lease Agreement










    This packet includes the following items:

    1.  Information & Checklist
    2.  Commercial Lease Agreement
    3.  Exhibit A: Floor Plan Cover Sheet





    General Information
    Commercial Lease Agreement

       Location! Location! Location!” has been the mantra of many a successful business.  However, finding the right space is just the beginning.  Before you can go to work on making your business a reality, you must enter a Commercial Lease Agreement.  This agreement will outline the legal rights, obligations and processes for both the Landlord and the Tenant.

       Often Landlords and Tenants fall into the trap of perceiving the lease agreement as an obstacle to their eventual business relationship, rather than an important step in protecting the parties.  A good commercial lease agreement should spell out the parties intentions and understanding, clearly stating important information such as premises description, rent, lease terms, repair policies, etc.  By having these rights and obligations clearly stated, you can avoid most misunderstandings and the problems they spawn.

       Unfortunately, disagreements and other problems do occur.  In those situations, the commercial lease agreement will help to facilitate a smooth resolution by clearly stating the correct processes to cure the problem, hopefully leading to an amicable solution.   If an amicable solution is not possible, a well-written commercial lease agreement can protect you and win your case in court.This packet includes the following items: (1) Information & Checklist; (2) Commercial Lease Agreement; (3) Exhibit A: Floor Plan Cover Sheet.








    Instructions & Checklist
    Commercial Lease Agreement

    The following checklist is provided to help guide you through the completion of your lease, as well as provide general advice that may help you avoid miscommunications with your tenants and thereby avoid future conflict.

    General

       Both the Landlord and Tenant must sign the Lease.  Two original copies should be made (one for the Landlord and one for the Tenant).  

       Because the relationship with your tenant is one that will generally span months if not years, maintaining the health of that relationship is key.  When completing the lease, try to answer or anticipate as many of the Tenants concerns as possible.  It is better to have issues arise before the lease is signed than after.

       Documentation is your friend.  Any consents, waivers or amendments to the lease should be in writing.  In the case of the amendment, both parties must sign the document.

    Section Specific

       Section 1(A) Premises-  When describing the Premises, be as specific as possible.  A vague description may mislead your tenant, create distrust and possibly result in litigation.  If necessary, attach a schematic of the building, property or floor plan.

       Section 1(B) Parking -  If no parking is provided, delete this section and renumber.
     
       Section 2 Term  Many landlords choose not to include an automatic renewal term.  If you choose to remove this as an option, either cross out or delete the section.

       Section 4 Security Deposits  Security deposits are often regulated by state, county and municipal governments.  Some states require that the security deposits be placed in an interest-bearing savings account.  Others have very specific documentation requirements if any portion of the deposit is not returned to the Tenant after the expiration of the lease term.  Check your states deposit regulations to ensure that you are in compliance.








    q   Section 7(B) Insurance  This is an optional provision.  If you choose not to require your Tenant to maintain an insurance policy, or if you require additional insurance, alter this provision to correspond with your needs.








    DISCLAIMER:

    ?   These forms contain the basic terms and language that should be included in a commercial lease agreement. The laws in some states require a landlord to make additional written disclosures, including disclosures about the condition of the unit, the building, the neighborhood, the environment and any other known problems. Certain cities and municipalities may have additional disclosure requirements that will need to be included. You should consult with a real estate agent or attorney in your area to determine what additional disclosures, if any, are required in your state or locality.  Even if these disclosures are not required by law, a Tenant may still request that they be made, and may negotiate to make them part of its agreement.

    ?   Laws vary from time to time and from state to state. These forms are not a substitute for legal advice. These forms should be considered only a starting point, and should not be used or signed before first consulting with an attorney to ensure that they address your particular situation. An attorney should be consulted before negotiating any document with another party.

    ?      The purchase and use of these forms is subject to the “Terms and
    Conditions” detailed at www.findlegalforms.com.












    COMMERCIAL LEASE AGREEMENT


    This Lease Agreement (this “Lease”) is entered by and between __________________________ (“Landlord”) and _____________________________ (“Tenant”) on ___________________, 20___.  Landlord and Tenant may collectively be referred to as the “Parties.”  This Lease creates joint and several liability in the case of multiple Tenants.

    The Parties agree as follows:

    1.  PREMISES.  

    A.  Premises.  Landlord hereby leases part of the property located at: ________________
    ___________________________________________ [complete address of Premises] designated as ________________________________ [insert suite or office number if applicable] as described in the “Floor Plan” attached hereto as Exhibit A (the “Premises”)  to Tenant.  The total square footage of the Premises is __________.

    B.  Parking. Tenant shall be entitled to use _____ parking space(s) for the parking of motor vehicle(s) located ____________________________________________________ for an additional monthly fee per space of $______________ per month.  The parking space(s) will be used exclusively for the parking of passenger vehicles and is not to be used for washing, painting or servicing of vehicles. Tenants vehicle will occupy the parking space(s) entirely at the risk of Tenant.  If Tenant shall dispose of his vehicle or not require parking accommodation for any other reason, Tenant shall not assign or sublet the parking space unless expressly granted prior permission by Landlord.

    C.  Utilities & Services.  Landlord shall be responsible for paying for the following utilities and services: __________________________________________.  Renter shall be responsible for all other utilities and services including, but not limited to: _______________________________________________________.  For those utilities or services that Tenant is responsible for but are not individually metered, Landlord shall pay the amount due, and invoice Tenant for Tenants pro rata share of the charges.  Tenant shall pay such charges within __________ (____) days of receiving the invoice.


    2.  LEASE TERM.   The lease will start on ____________________, 20__ and will end on ____________________, 20__ (the “Initial Lease Term”).  The Rent for the Initial Lease Term shall be as set forth in the schedule in Section 3 below.  Provided that the Lease is not in default, Tenant may extend the Lease for an additional term of ________________  (the “Renewal Term,” collectively with the Initial Lease Term, the “Lease Term”).  If Tenant chooses to exercise its option for the Renewal Term, Tenant must notify Landlord in writing ninety (90) days prior to the expiration of the Initial Lease Term.  The Rent for the Renewal Term shall be as set forth in Section 3 below, and otherwise upon the same terms, conditions and obligations as set forth in the Lease.

    3.  PAYMENTS & TAXES.  
    A.  Rent Amount.  Tenant agrees to pay to Landlord as rent for the Premises the following amounts (the “Rent”):

    Year
    Annual Rent
    Monthly Rent
    1
    $
    $
    2
    $
    $
    3
    $
    $
    4
    $
    $
    5
    $
    $

    B.   Payment.  The rental payment as described above shall be due in advance on the first day of each month at: ______________________________________________________ [address for rent payment] or at any other address designated by Landlord.  If the Initial Lease Term does not start on the first day of the month or end on the last day of a month, the Rent for the relevant month will be prorated accordingly.

    C.  Late Charges & Insufficient Funds.   If any amounts due under this Lease are more than _____ days late, Tenant agrees to pay a late fee of $________.  Tenant agrees to pay the charge of $_____ for each check provided by Tenant to Landlord that is returned to Landlord for lack of sufficient funds.

    D.  Taxes. Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special assessments that are levied, assessed or come due during the Lease Term on the Premises, and all personal property taxes with respect to Landlord's personal property, if any, on the Premises. Tenant shall be responsible for paying all taxes with respect to Tenant's equipment, fixtures or personal property on the Premises.


    4.  SECURITY DEPOSIT.

    A.  Security Deposit.  At the signing of this Lease, Tenant shall deposit with Landlord, in trust, a security deposit of $__________ as security for the performance by Tenant of the terms under this Lease and for any damages that may be caused by Tenant, its employees, agents and/or visitors to the Premises during the Lease Term (the “Deposit”).  Landlord may use part or all of the Deposit to repair any damage to the Premises caused by Tenant, its employees, agents and/or visitors to the Premises. However, Landlord is not limited to the Deposit to recoup damages, and Tenant remains liable for any balance. Tenant shall not apply or deduct any portion of the Deposit from any months Rent, including the last month of the rental term. Tenant shall not use or apply the Deposit in lieu of payment of Rent. If Tenant breaches any terms or conditions of this Lease, Tenant shall forfeit the Deposit, as permitted by law.

    B.  Return of Deposit.  In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this Lease, the Deposit shall be returned to Tenant after the date fixed as the end of the Lease and after delivery of entire possession of the Premises to Landlord.




    5.  USE.   
    A.  Permitted Use.  Tenant shall occupy and use the Premises for: _________________ ______________________________________________________________, consistent with Tenants lawful business operations.  If there is any change to the use of the Premises, Tenant must first obtain Landlords written consent, which shall not be unreasonably withheld.
     
    B.  Prohibited Use.  Notwithstanding anything to the contrary, Tenant is not to use the Premises for any illegal purposes, nor will Tenant use the Premises for the storing, manufacture, selling or distribution of any dangerous, noxious or hazardous substance.  Furthermore, Tenant shall not use the Premises for any purpose that would cause Landlords insurance cost to increase at any time during the Lease Term.

    C.  Noise.  Tenant shall not cause or allow any unreasonably loud noise or activity in the Premises that might disturb the rights, comforts and conveniences of other tenants or neighbors.

    D.  Signage.  Tenant is permitted to install and display signage identifying the Tenant and Tenants business activities.  Such signage shall be placed: _______________________ _________________________________________ and shall not exceed the following dimensions: _________________________________________________________.  Additional signage may only be displayed with Landlords prior written consent.

    E.  Building Rules & Regulations.  Landlord may adopt reasonable building rules, which will become part of this Lease

    6.  ALTERATION, DAMAGE & REPAIR.

    A.  Alterations and Improvements.  Tenant agrees not to make any improvements or alterations to the Premises without the prior written consent of Landlord.  If any alterations, improvements or changes are made to or built on or around the Premises, with the exception of fixtures and personal property that can be removed without damage to the Premises, they shall become the property of Landlord and shall remain at the expiration of the Lease, unless otherwise agreed in writing.

    B.  Damage to the Premises.   If the Premises or any part of the Premises are damaged or destroyed by fire or other casualty not due to Tenants negligence, the Rent will be abated during the time that the Premises are rendered unfit for occupancy.  If the Premises are rendered partially unfit because of damage or destruction not due to Tenants Negligence, the Rent will be abated in proportion to the percentage of the Premises that are and remain unfit for occupancy.  If Landlord decides not to repair or rebuild the Premises, then this Lease shall terminate and the Rent shall be prorated up to the time of the damage.  Any unearned rent paid in advance shall be refunded to Tenant.

    C.  Condition of Premises. Tenant or Tenants agent has inspected the Premises, the fixtures, the grounds, building and improvements and acknowledges that the Premises are in good and acceptable condition and are fit for occupancy.  If in Tenants opinion, the condition of the Premises has changed at any time during the Lease Term, Tenant shall promptly provide reasonable notice to Landlord.

    D.  Maintenance and Repair.  Tenant will, at Tenants sole expense, keep and maintain the Premises in good, clean and sanitary condition and repair during the term of this Lease and any renewal thereof.  Tenant shall be responsible to make all repairs to the Premises, fixtures, appliances and equipment therein that may have been damaged by Tenant's misuse, waste, or neglect, or that of the Tenants agents, associates, employees, or visitors.  Tenant agrees that no painting will be done on or about the Premises without the prior written consent of Landlord.  Tenant shall promptly notify Landlord of any damage, defect or destruction of the Premises, or in the event of the failure of any of the appliances or equipment. Landlord will use his best efforts to repair or replace any such damaged or defective area, appliance or equipment.

    7.  SECURITY, INSURANCE & INDEMNIFICATION.
       
    A.  Security.  Tenant understands that Landlord [mark one]  does  does not provide a security alarm systems or other security for Tenant or the Premises.  In the event any alarm system is provided, Tenant understands that such alarm system is not warranted to be complete in all respects or to be sufficient to protect Tenant or the Premises.  Tenant releases Landlord from any loss, damage, claim or injury resulting from the failure of any alarm system, security or from the lack of any alarm system or security.

    B.  Insurance.   Landlord and Tenant shall each be responsible for maintaining appropriate insurance for their respective interests in the Premises and property located on the Premises.  Tenant understands that Landlord will not provide any insurance coverage for Tenants property.  Landlord will not be responsible for any loss of Tenants property, whether by theft, fire, riots, strikes, acts of God or otherwise.  Notwithstanding anything to the foregoing, Tenant shall, at its own expense, maintain a policy of comprehensive general liability with respect to its activities at the Premises which will afford protection of not less than $[_____________] combined single limit coverage of bodily damage, property damage, or combination thereof.  In addition, Landlord shall be listed as an additional insured on Tenants general liability insurance policy.

    C.  Indemnification. To the extent permitted by law, Tenant hereby indemnifies and holds Landlord and Landlords property, including the Premises, free and harmless from any liability for losses, claims, injury to or death of any person, including Tenant, or for damage to property arising from Tenant using and occupying the Premises or from the acts or omissions of any person or persons, including Tenant, in or about the Premises with Tenants express or implied consent, except where such loss, claim or injury is due to Landlord's act or negligence.


    8.  POSSESSION & INSPECTION.

    A.  Possession and Surrender of Premises.  Tenant shall be entitled to possession of the Premises on the first day of the Lease Term. At the expiration of the Lease Term, Tenant shall peaceably surrender the Premises to Landlord or Landlords agent in as good of condition as it was at the commencement of the Lease, reasonable wear and tear excepted.

    B. Quiet Enjoyment.  Tenant shall be entitled to quiet enjoyment of the Premises, and Landlord will not interfere with that right, as long as Tenant pays the Rent in a timely manner and performs all other obligations under this Lease.

    C.  Right of Inspections.  Tenant agrees to make the Premises available to Landlord or Landlords agents to inspect, to make repairs or improvements, to supply agreed services, to show the Premises to prospective buyers or tenants, or to address an emergency.  Except in an emergency situation, Landlord shall give Tenant reasonable notice of intent to enter.  For these purposes, twenty-four (24) hour notice shall be deemed reasonable.  Tenant shall not, without Landlords prior written consent, add, alter or re-key any locks to the Premises.  At all times Landlord shall be provided with a key or keys capable of unlocking all such locks and permitting entry.  Tenant further agrees to notify Landlord in writing if Tenant installs any burglar alarm system, including instructions on how to disarm it in case of emergency entry.

    9.  DEFAULTS.   

    A.  Event of Default.  If Tenant fails to fulfill or obey any of the covenants of this Lease, Tenant shall be in default of this Lease (“Event of Default”).  During any Event of Default, subject to any statute, ordinance or law to the contrary, and upon Landlord serving a written seven (7) days notice upon Tenant specifying the nature of said default and upon the expiration of said seven (7) days, if Tenant does not cure a default of which he has been notified, or if the default cannot be completely cured or remedied in seven days, Landlord may at Landlords option: (i) cure such default and add the cost of such cure to Tenants financial obligations under the Lease; or (ii) declare Tenant in default and terminate the Lease.  

    B.  Physical Remedies.  If the notice provided for in Section 9(A) has been given, and the term shall expire as noted, or if Tenant shall make default in the payment of Rent, then Landlord may without notice, as permitted by law, re-enter the Premises either by force or otherwise, dispossess Tenant by summary proceedings or otherwise, and retake possession of the Premises.  Tenant hereby waives the service of notice of intention to re-enter or institute legal proceedings to that end.  

    C.  Financial Remedies.  In the event of any default, re-entry, expiration and/or dispossession by summary proceedings or otherwise, (i) the Rent shall become due thereupon and be paid up to the time of such re-entry, dispossession or expiration, together with such expenses Landlord may incur for legal expenses, attorneys fees, brokerage, and/or putting the Premises in good order; (ii) Landlord may re-let the Premises or any part or parts thereof; and/or (iii) Tenant shall also pay Landlord liquidated damages for his failure to observe and perform the covenants in this Lease.  Landlord may, at his sole option, hold Tenant liable for any difference between the Rent payable under this Lease during the balance of the Lease Term, and any rent paid by a successive Tenant if the Premises are re-let.  In the event that after default by Tenant Landlord is unable to re-let the Premises during any remaining term of this Lease, Landlord may at his option hold Tenant liable for the balance of the unpaid Rent under the Lease for the remainder of the Lease Term.  Landlord shall be responsible for mitigating its damages.
     
    10.  ASSIGNMENT & SUBORDINATION.

    A.  Assignment by Tenant.  Tenant shall not assign or sublet any interest in this Lease without prior written consent of the Landlord, which consent shall not be unreasonably withheld.  Any assignment or sublease without Landlords written prior consent shall, at Landlords option, terminate this Lease.

    B.  Assignment by Landlord.  Nothing in this Lease shall restrict the Landlords ability to sell, assign, convey or otherwise encumber the Premises, subject only to the rights of the Tenant under this Lease.

    C.  Subordination.  This lease is and shall be subordinate in any and all respects to all mortgages now or hereafter placed on the Premises, and all extensions, renewals, or modifications thereof.  The Tenant agrees to promptly execute any instruments of subordination as may be requested.

    11.  MISCELLANEOUS.

    A.  Severability.  If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this Lease shall continue in full force and effect.  If any provision of this Lease is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

    B.  Binding Effect.   The covenants and conditions contained in the Lease shall apply to and bind the parties and the heirs, legal representatives, successors and permitted assigns of the parties.

    C.  Governing Law.  This Lease shall be governed by and construed in accordance with the laws of the State of ______________________.

    D.  Entire Agreement.  This Lease constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Lease.  There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease.  This Lease may be modified in writing and must be signed by both Landlord and Tenant.

    E.  Notice.  Any notice required or otherwise given pursuant to this Lease shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, if to Tenant, at the Premises and if to Landlord, at the address for payment of Rent. Either party may change such addresses from time to time by providing notice as set forth above.

    F.  Waiver.   The failure of either party to enforce any provisions of this Lease shall not be deemed a waiver or limitation of that partys right to subsequently enforce and compel strict compliance with every provision of this Lease. The acceptance of Rent by Landlord does not waive Landlords right to enforce any provisions of this Lease.



    12.  ADDITIONAL TERMS & CONDITIONS.   (Specify “none” if there are no additional provisions.)
    _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


    IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year first above written.


    LANDLORD:               TENANT:

    _____________________________         ________________________________
    (Signature)                  (Signature)
    _____________________________         ________________________________
    (Print Name)                  (Print Name)
    _____________________________         ________________________________
    Title (if applicable)               Title (if applicable)








    EXHIBIT A

    “Floor Plan
Number of Pages13
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#17276
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.











Commercial Lease Agreement










This packet includes the following items:

1.  Information & Checklist
2.  Commercial Lease Agreement
3.  Exhibit A: Floor Plan Cover Sheet





General Information
Commercial Lease Agreement

   Location! Location! Location!” has been the mantra of many a successful business.  However, finding the right space is just the beginning.  Before you can go to work on making your business a reality, you must enter a Commercial Lease Agreement.  This agreement will outline the legal rights, obligations and processes for both the Landlord and the Tenant.

   Often Landlords and Tenants fall into the trap of perceiving the lease agreement as an obstacle to their eventual business relationship, rather than an important step in protecting the parties.  A good commercial lease agreement should spell out the parties intentions and understanding, clearly stating important information such as premises description, rent, lease terms, repair policies, etc.  By having these rights and obligations clearly stated, you can avoid most misunderstandings and the problems they spawn.

   Unfortunately, disagreements and other problems do occur.  In those situations, the commercial lease agreement will help to facilitate a smooth resolution by clearly stating the correct processes to cure the problem, hopefully leading to an amicable solution.   If an amicable solution is not possible, a well-written commercial lease agreement can protect you and win your case in court.This packet includes the following items: (1) Information & Checklist; (2) Commercial Lease Agreement; (3) Exhibit A: Floor Plan Cover Sheet.








Instructions & Checklist
Commercial Lease Agreement

The following checklist is provided to help guide you through the completion of your lease, as well as provide general advice that may help you avoid miscommunications with your tenants and thereby avoid future conflict.

General

   Both the Landlord and Tenant must sign the Lease.  Two original copies should be made (one for the Landlord and one for the Tenant).  

   Because the relationship with your tenant is one that will generally span months if not years, maintaining the health of that relationship is key.  When completing the lease, try to answer or anticipate as many of the Tenants concerns as possible.  It is better to have issues arise before the lease is signed than after.

   Documentation is your friend.  Any consents, waivers or amendments to the lease should be in writing.  In the case of the amendment, both parties must sign the document.

Section Specific

   Section 1(A) Premises-  When describing the Premises, be as specific as possible.  A vague description may mislead your tenant, create distrust and possibly result in litigation.  If necessary, attach a schematic of the building, property or floor plan.

   Section 1(B) Parking -  If no parking is provided, delete this section and renumber.
 
   Section 2 Term  Many landlords choose not to include an automatic renewal term.  If you choose to remove this as an option, either cross out or delete the section.

   Section 4 Security Deposits  Security deposits are often regulated by state, county and municipal governments.  Some states require that the security deposits be placed in an interest-bearing savings account.  Others have very specific documentation requirements if any portion of the deposit is not returned to the Tenant after the expiration of the lease term.  Check your states deposit regulations to ensure that you are in compliance.








q   Section 7(B) Insurance  This is an optional provision.  If you choose not to require your Tenant to maintain an insurance policy, or if you require additional insurance, alter this provision to correspond with your needs.








DISCLAIMER:

?   These forms contain the basic terms and language that should be included in a commercial lease agreement. The laws in some states require a landlord to make additional written disclosures, including disclosures about the condition of the unit, the building, the neighborhood, the environment and any other known problems. Certain cities and municipalities may have additional disclosure requirements that will need to be included. You should consult with a real estate agent or attorney in your area to determine what additional disclosures, if any, are required in your state or locality.  Even if these disclosures are not required by law, a Tenant may still request that they be made, and may negotiate to make them part of its agreement.

?   Laws vary from time to time and from state to state. These forms are not a substitute for legal advice. These forms should be considered only a starting point, and should not be used or signed before first consulting with an attorney to ensure that they address your particular situation. An attorney should be consulted before negotiating any document with another party.

?      The purchase and use of these forms is subject to the “Terms and
Conditions” detailed at www.findlegalforms.com.












COMMERCIAL LEASE AGREEMENT


This Lease Agreement (this “Lease”) is entered by and between __________________________ (“Landlord”) and _____________________________ (“Tenant”) on ___________________, 20___.  Landlord and Tenant may collectively be referred to as the “Parties.”  This Lease creates joint and several liability in the case of multiple Tenants.

The Parties agree as follows:

1.  PREMISES.  

A.  Premises.  Landlord hereby leases part of the property located at: ________________
___________________________________________ [complete address of Premises] designated as ________________________________ [insert suite or office number if applicable] as described in the “Floor Plan” attached hereto as Exhibit A (the “Premises”)  to Tenant.  The total square footage of the Premises is __________.

B.  Parking. Tenant shall be entitled to use _____ parking space(s) for the parking of motor vehicle(s) located ____________________________________________________ for an additional monthly fee per space of $______________ per month.  The parking space(s) will be used exclusively for the parking of passenger vehicles and is not to be used for washing, painting or servicing of vehicles. Tenants vehicle will occupy the parking space(s) entirely at the risk of Tenant.  If Tenant shall dispose of his vehicle or not require parking accommodation for any other reason, Tenant shall not assign or sublet the parking space unless expressly granted prior permission by Landlord.

C.  Utilities & Services.  Landlord shall be responsible for paying for the following utilities and services: __________________________________________.  Renter shall be responsible for all other utilities and services including, but not limited to: _______________________________________________________.  For those utilities or services that Tenant is responsible for but are not individually metered, Landlord shall pay the amount due, and invoice Tenant for Tenants pro rata share of the charges.  Tenant shall pay such charges within __________ (____) days of receiving the invoice.


2.  LEASE TERM.   The lease will start on ____________________, 20__ and will end on ____________________, 20__ (the “Initial Lease Term”).  The Rent for the Initial Lease Term shall be as set forth in the schedule in Section 3 below.  Provided that the Lease is not in default, Tenant may extend the Lease for an additional term of ________________  (the “Renewal Term,” collectively with the Initial Lease Term, the “Lease Term”).  If Tenant chooses to exercise its option for the Renewal Term, Tenant must notify Landlord in writing ninety (90) days prior to the expiration of the Initial Lease Term.  The Rent for the Renewal Term shall be as set forth in Section 3 below, and otherwise upon the same terms, conditions and obligations as set forth in the Lease.

3.  PAYMENTS & TAXES.  
A.  Rent Amount.  Tenant agrees to pay to Landlord as rent for the Premises the following amounts (the “Rent”):

Year
Annual Rent
Monthly Rent
1
$
$
2
$
$
3
$
$
4
$
$
5
$
$

B.   Payment.  The rental payment as described above shall be due in advance on the first day of each month at: ______________________________________________________ [address for rent payment] or at any other address designated by Landlord.  If the Initial Lease Term does not start on the first day of the month or end on the last day of a month, the Rent for the relevant month will be prorated accordingly.

C.  Late Charges & Insufficient Funds.   If any amounts due under this Lease are more than _____ days late, Tenant agrees to pay a late fee of $________.  Tenant agrees to pay the charge of $_____ for each check provided by Tenant to Landlord that is returned to Landlord for lack of sufficient funds.

D.  Taxes. Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special assessments that are levied, assessed or come due during the Lease Term on the Premises, and all personal property taxes with respect to Landlord's personal property, if any, on the Premises. Tenant shall be responsible for paying all taxes with respect to Tenant's equipment, fixtures or personal property on the Premises.


4.  SECURITY DEPOSIT.

A.  Security Deposit.  At the signing of this Lease, Tenant shall deposit with Landlord, in trust, a security deposit of $__________ as security for the performance by Tenant of the terms under this Lease and for any damages that may be caused by Tenant, its employees, agents and/or visitors to the Premises during the Lease Term (the “Deposit”).  Landlord may use part or all of the Deposit to repair any damage to the Premises caused by Tenant, its employees, agents and/or visitors to the Premises. However, Landlord is not limited to the Deposit to recoup damages, and Tenant remains liable for any balance. Tenant shall not apply or deduct any portion of the Deposit from any months Rent, including the last month of the rental term. Tenant shall not use or apply the Deposit in lieu of payment of Rent. If Tenant breaches any terms or conditions of this Lease, Tenant shall forfeit the Deposit, as permitted by law.

B.  Return of Deposit.  In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this Lease, the Deposit shall be returned to Tenant after the date fixed as the end of the Lease and after delivery of entire possession of the Premises to Landlord.




5.  USE.   
A.  Permitted Use.  Tenant shall occupy and use the Premises for: _________________ ______________________________________________________________, consistent with Tenants lawful business operations.  If there is any change to the use of the Premises, Tenant must first obtain Landlords written consent, which shall not be unreasonably withheld.
 
B.  Prohibited Use.  Notwithstanding anything to the contrary, Tenant is not to use the Premises for any illegal purposes, nor will Tenant use the Premises for the storing, manufacture, selling or distribution of any dangerous, noxious or hazardous substance.  Furthermore, Tenant shall not use the Premises for any purpose that would cause Landlords insurance cost to increase at any time during the Lease Term.

C.  Noise.  Tenant shall not cause or allow any unreasonably loud noise or activity in the Premises that might disturb the rights, comforts and conveniences of other tenants or neighbors.

D.  Signage.  Tenant is permitted to install and display signage identifying the Tenant and Tenants business activities.  Such signage shall be placed: _______________________ _________________________________________ and shall not exceed the following dimensions: _________________________________________________________.  Additional signage may only be displayed with Landlords prior written consent.

E.  Building Rules & Regulations.  Landlord may adopt reasonable building rules, which will become part of this Lease

6.  ALTERATION, DAMAGE & REPAIR.

A.  Alterations and Improvements.  Tenant agrees not to make any improvements or alterations to the Premises without the prior written consent of Landlord.  If any alterations, improvements or changes are made to or built on or around the Premises, with the exception of fixtures and personal property that can be removed without damage to the Premises, they shall become the property of Landlord and shall remain at the expiration of the Lease, unless otherwise agreed in writing.

B.  Damage to the Premises.   If the Premises or any part of the Premises are damaged or destroyed by fire or other casualty not due to Tenants negligence, the Rent will be abated during the time that the Premises are rendered unfit for occupancy.  If the Premises are rendered partially unfit because of damage or destruction not due to Tenants Negligence, the Rent will be abated in proportion to the percentage of the Premises that are and remain unfit for occupancy.  If Landlord decides not to repair or rebuild the Premises, then this Lease shall terminate and the Rent shall be prorated up to the time of the damage.  Any unearned rent paid in advance shall be refunded to Tenant.

C.  Condition of Premises. Tenant or Tenants agent has inspected the Premises, the fixtures, the grounds, building and improvements and acknowledges that the Premises are in good and acceptable condition and are fit for occupancy.  If in Tenants opinion, the condition of the Premises has changed at any time during the Lease Term, Tenant shall promptly provide reasonable notice to Landlord.

D.  Maintenance and Repair.  Tenant will, at Tenants sole expense, keep and maintain the Premises in good, clean and sanitary condition and repair during the term of this Lease and any renewal thereof.  Tenant shall be responsible to make all repairs to the Premises, fixtures, appliances and equipment therein that may have been damaged by Tenant's misuse, waste, or neglect, or that of the Tenants agents, associates, employees, or visitors.  Tenant agrees that no painting will be done on or about the Premises without the prior written consent of Landlord.  Tenant shall promptly notify Landlord of any damage, defect or destruction of the Premises, or in the event of the failure of any of the appliances or equipment. Landlord will use his best efforts to repair or replace any such damaged or defective area, appliance or equipment.

7.  SECURITY, INSURANCE & INDEMNIFICATION.
   
A.  Security.  Tenant understands that Landlord [mark one]  does  does not provide a security alarm systems or other security for Tenant or the Premises.  In the event any alarm system is provided, Tenant understands that such alarm system is not warranted to be complete in all respects or to be sufficient to protect Tenant or the Premises.  Tenant releases Landlord from any loss, damage, claim or injury resulting from the failure of any alarm system, security or from the lack of any alarm system or security.

B.  Insurance.   Landlord and Tenant shall each be responsible for maintaining appropriate insurance for their respective interests in the Premises and property located on the Premises.  Tenant understands that Landlord will not provide any insurance coverage for Tenants property.  Landlord will not be responsible for any loss of Tenants property, whether by theft, fire, riots, strikes, acts of God or otherwise.  Notwithstanding anything to the foregoing, Tenant shall, at its own expense, maintain a policy of comprehensive general liability with respect to its activities at the Premises which will afford protection of not less than $[_____________] combined single limit coverage of bodily damage, property damage, or combination thereof.  In addition, Landlord shall be listed as an additional insured on Tenants general liability insurance policy.

C.  Indemnification. To the extent permitted by law, Tenant hereby indemnifies and holds Landlord and Landlords property, including the Premises, free and harmless from any liability for losses, claims, injury to or death of any person, including Tenant, or for damage to property arising from Tenant using and occupying the Premises or from the acts or omissions of any person or persons, including Tenant, in or about the Premises with Tenants express or implied consent, except where such loss, claim or injury is due to Landlord's act or negligence.


8.  POSSESSION & INSPECTION.

A.  Possession and Surrender of Premises.  Tenant shall be entitled to possession of the Premises on the first day of the Lease Term. At the expiration of the Lease Term, Tenant shall peaceably surrender the Premises to Landlord or Landlords agent in as good of condition as it was at the commencement of the Lease, reasonable wear and tear excepted.

B. Quiet Enjoyment.  Tenant shall be entitled to quiet enjoyment of the Premises, and Landlord will not interfere with that right, as long as Tenant pays the Rent in a timely manner and performs all other obligations under this Lease.

C.  Right of Inspections.  Tenant agrees to make the Premises available to Landlord or Landlords agents to inspect, to make repairs or improvements, to supply agreed services, to show the Premises to prospective buyers or tenants, or to address an emergency.  Except in an emergency situation, Landlord shall give Tenant reasonable notice of intent to enter.  For these purposes, twenty-four (24) hour notice shall be deemed reasonable.  Tenant shall not, without Landlords prior written consent, add, alter or re-key any locks to the Premises.  At all times Landlord shall be provided with a key or keys capable of unlocking all such locks and permitting entry.  Tenant further agrees to notify Landlord in writing if Tenant installs any burglar alarm system, including instructions on how to disarm it in case of emergency entry.

9.  DEFAULTS.   

A.  Event of Default.  If Tenant fails to fulfill or obey any of the covenants of this Lease, Tenant shall be in default of this Lease (“Event of Default”).  During any Event of Default, subject to any statute, ordinance or law to the contrary, and upon Landlord serving a written seven (7) days notice upon Tenant specifying the nature of said default and upon the expiration of said seven (7) days, if Tenant does not cure a default of which he has been notified, or if the default cannot be completely cured or remedied in seven days, Landlord may at Landlords option: (i) cure such default and add the cost of such cure to Tenants financial obligations under the Lease; or (ii) declare Tenant in default and terminate the Lease.  

B.  Physical Remedies.  If the notice provided for in Section 9(A) has been given, and the term shall expire as noted, or if Tenant shall make default in the payment of Rent, then Landlord may without notice, as permitted by law, re-enter the Premises either by force or otherwise, dispossess Tenant by summary proceedings or otherwise, and retake possession of the Premises.  Tenant hereby waives the service of notice of intention to re-enter or institute legal proceedings to that end.  

C.  Financial Remedies.  In the event of any default, re-entry, expiration and/or dispossession by summary proceedings or otherwise, (i) the Rent shall become due thereupon and be paid up to the time of such re-entry, dispossession or expiration, together with such expenses Landlord may incur for legal expenses, attorneys fees, brokerage, and/or putting the Premises in good order; (ii) Landlord may re-let the Premises or any part or parts thereof; and/or (iii) Tenant shall also pay Landlord liquidated damages for his failure to observe and perform the covenants in this Lease.  Landlord may, at his sole option, hold Tenant liable for any difference between the Rent payable under this Lease during the balance of the Lease Term, and any rent paid by a successive Tenant if the Premises are re-let.  In the event that after default by Tenant Landlord is unable to re-let the Premises during any remaining term of this Lease, Landlord may at his option hold Tenant liable for the balance of the unpaid Rent under the Lease for the remainder of the Lease Term.  Landlord shall be responsible for mitigating its damages.
 
10.  ASSIGNMENT & SUBORDINATION.

A.  Assignment by Tenant.  Tenant shall not assign or sublet any interest in this Lease without prior written consent of the Landlord, which consent shall not be unreasonably withheld.  Any assignment or sublease without Landlords written prior consent shall, at Landlords option, terminate this Lease.

B.  Assignment by Landlord.  Nothing in this Lease shall restrict the Landlords ability to sell, assign, convey or otherwise encumber the Premises, subject only to the rights of the Tenant under this Lease.

C.  Subordination.  This lease is and shall be subordinate in any and all respects to all mortgages now or hereafter placed on the Premises, and all extensions, renewals, or modifications thereof.  The Tenant agrees to promptly execute any instruments of subordination as may be requested.

11.  MISCELLANEOUS.

A.  Severability.  If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this Lease shall continue in full force and effect.  If any provision of this Lease is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

B.  Binding Effect.   The covenants and conditions contained in the Lease shall apply to and bind the parties and the heirs, legal representatives, successors and permitted assigns of the parties.

C.  Governing Law.  This Lease shall be governed by and construed in accordance with the laws of the State of ______________________.

D.  Entire Agreement.  This Lease constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Lease.  There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease.  This Lease may be modified in writing and must be signed by both Landlord and Tenant.

E.  Notice.  Any notice required or otherwise given pursuant to this Lease shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, if to Tenant, at the Premises and if to Landlord, at the address for payment of Rent. Either party may change such addresses from time to time by providing notice as set forth above.

F.  Waiver.   The failure of either party to enforce any provisions of this Lease shall not be deemed a waiver or limitation of that partys right to subsequently enforce and compel strict compliance with every provision of this Lease. The acceptance of Rent by Landlord does not waive Landlords right to enforce any provisions of this Lease.



12.  ADDITIONAL TERMS & CONDITIONS.   (Specify “none” if there are no additional provisions.)
_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year first above written.


LANDLORD:               TENANT:

_____________________________         ________________________________
(Signature)                  (Signature)
_____________________________         ________________________________
(Print Name)                  (Print Name)
_____________________________         ________________________________
Title (if applicable)               Title (if applicable)








EXHIBIT A

“Floor Plan
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Excellent experience. Googled free commercial lease and found a few. In actual fact when you had spent time filling them in, when you got to the print bit it asked for card details. Why? Many people take up the service on a monthly basis and it saves time the try and convince you. Great if you can ever find them again. Failure to cancel results in a big monthly fee automatically being taken untill cancelled. No thanks I thought. Did the same on another site and read dubious advice in online forums. A few examples were on the web but either not appropriate or USA wording. This came editable, complete with guidance notes, etc. Very pleased. The price is more than reasonable. Full marks.


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I thought the California Commercial Lease form was easy to use and would recommend it.


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CO

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CA

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Very easy for me to enter the details to personalise it to our transaction, (took 10 minutes maximum). Fully satisfied the requirements of those it was submitted to, including the financial institution legal specialists.


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