Looking for a sample commercial lease agreement that you can count on? Our free commercial lease form and guide below will help you kick start a lease quick and easy today.
It doesn't take long for anyone to notice that commercial leases are a different breed from their residential cousins. While residential laws tend to favor the tenant, commercial laws don't usually take sides... because commercial lease agreements are seen as a business arrangement between two well-informed parties.
Since the law tends to interfere less with commercial leases, this makes your lease agreement all the more important - It becomes a free-for-all negotiation where almost anything goes as long as the landlord and tenant are okay with it.
Whether you are renting a shop, office or warehouse, our commercial lease agreement form will give you a hand in setting up the perfect lease right now.
*Make sure this free commercial lease form complies with your local real estate laws before using it. If you have any doubts, you can ask a real estate lawyer online.
This Commercial Lease Agreement is made between the Landlord _________________________ and the Tenant _________________________ on this date _______________.
The Landlord makes available for lease a portion of the Building designated as the Premises, described as follows:
The Landlord hereby agrees to rent the Premises to Tenant and the Tenant hereby agrees to rent the Premises from the Landlord.
The initial lease term shall begin on _______________ and end on _______________ for a total period of _____ months.
The Tenant shall have the right to renew the Lease for one extended term of _____ months. If the Tenant chooses to extend the Lease, he/she has to give a written notice to the Landlord _____ days before the initial Lease term expires. If the Lease is renewed, it shall bear the same terms, conditions and provisions contained in this commercial lease agreement.
For the initial Lease term, the Tenant agrees to pay the Landlord $ _______________ per month as rent on or before the _____ day of each month.
For the renewed Lease term, if any, the Tenant agrees to pay the Landlord $ _______________ per month as rent on or before the _____ day of each month.
If rent due is not paid on of before the _____ day of the month, Tenant agrees to pay a late charge of $ _______________ plus an additional late charge of $ _______________ per day until the rent is paid in full.
3. SECURITY DEPOSIT:
The Tenant shall deposit an amount of $ _______________ to be held by the Landlord as security deposit. The Landlord shall have the right to make deductions from the security deposit for the default of rent payment and to make good on any Lease term default by the Tenant.
4. PROHIBITED USES:
The Tenant shall not use the Premises for storing, manufacturing or selling any explosives, flammables or other inherently dangerous substance, chemical, device or item.
5. SUBLET AND ASSIGNMENT:
The Tenant shall have the right without the Landlord's consent, to assign this Lease to a business with which the Tenant may merge or consolidate, to any subsidiary of the Tenant, to any corporation under common control with the Tenant, or to a purchaser of substantially all of the Tenant's assets.
Except as set forth above, the Tenant may not sublet this Property or assign this Lease to any other persons without the written consent of the Landlord.
6. REPAIRS AND MAINTENANCE:
The Tenant shall make all necessary repairs to the Premises at his/her expense during the Lease term. This includes repairing all defects and faults at any part of the Premises due to damage or tear and wear.
The Tenant shall have the right to redecorate, remodel, make additions, improvements and replacements to any or all parts of the Premises during the Lease term, provided that the such alterations shall neither impair the structural soundness or diminish the value of the Premises. No structural alterations or additions is to be made to the Premises without the Landlord's consent.
The Tenant shall have the right to place and replace any signs at any part of the Premises at his/her own expense, provided that the Tenant removes all such signs upon the termination of this Lease and repairs all damages resulting from the removal of signs.
9. RIGHT TO ENTER PREMISES:
The Landlord shall have the right to enter the Premises at reasonable hours to inspect the Premises, provided that the Landlord does not unreasonably impair the Tenant's business on the Premises.
The Tenant shall have the non-exclusive use of parking space in common with the Landlord, other tenants of the Building, their guests and invitees during the Lease term. The Tenant shall have the use of non-reserved common parking areas, driveways and footways, subject to the rules and regulations as prescribed from time to time by the Landlord.
The Landlord reserves the right to designate parking areas for the Tenant and his/her agents and employees. The Tenant shall provide the Landlord with a list of all license numbers for cars owned by the Tenant's, his/her agents and employees.
The Tenant shall pay all utility charges for electricity, water, gas, sanitation, waste disposal and other services to be used by the Tenant on the Premises.
12. PROPERTY TAXES:
The Landlord shall pay all general real estate taxes and installments of special assessments coming due on the Premises during the Lease term, and all personal property taxes on the Landlord's personal property at the Premises.
The Tenant shall pay all personal property taxes on his/her personal property at the Premises.
If the Premises is damaged by fire or other casualty due to an act of negligence by the Tenant or his/her agents, employees or invitees, rent shall not be diminished or disrupted while such damage is under repair. The Tenant shall also be responsible for any repair cost not covered by insurance.
The Landlord shall maintain fire and extended insurance coverage on the Premises and Building. The Tenant shall be responsible for fire and extended insurance coverage on all of his/her personal property in the Premises.
14. DAMAGE OR DESTRUCTION:
If an act of God or other casualty renders the Premises unusable for the Tenant's purposes, the Tenant shall have the right to terminate this Lease within _____ days of such damage. Rent payments shall be prorated as of the date of Lease termination.
The Tenant will be in default of this commercial lease agreement if he/she
1. fails to pay the full rent when due on at least _____ occasions or
2. fails to fulfill any term or condition of this Lease and such default continues for _____ days after the Landlord has given notice of it to the Tenant or
3. causes a lien to file against the Premises and such lien is not removed within _____ days of recordation
If the Tenant is in default, the Landlord shall have the right to terminate this commercial lease agreement by giving the Tenant a _____ day notice in writing.
16. ADDITIONAL TERMS AND CONDITIONS:
Landlord Name: _________________________
Landlord Signature: _________________________
Tenant Name: _________________________
Tenant Signature: _________________________
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