Commercial Lease Agreement Template

# Commercial Lease Agreement Template **Document Type:** Commercial Lease Agreement **Prepared For:** Entrepreneurs, Small Business Owners, and Startup Founders **Version:** 1.0 **Category:** Business Startup Essentials --- ## 1. Introduction and How to Use This Document ### Purpose This Commercial Lease Agreement Template is designed to provide entrepreneurs, small business owners, and startup founders with a comprehensive, legally structured framework for leasing commercial property. Whether you are opening a retail storefront, establishing an office, launching a restaurant, or securing warehouse space, this template covers the essential provisions needed to protect your interests and establish clear expectations between landlord and tenant. A commercial lease is one of the most significant financial and legal commitments a business will make. Unlike residential leases, commercial leases are largely governed by contract law rather than consumer protection statutes, meaning the terms you negotiate and sign are binding — often with far less flexibility to exit than a personal rental agreement. This document is built to give you a strong starting point. ### How to Use This Template 1. **Read the entire document** before filling in any fields. Understanding each clause helps you negotiate more effectively. 2. **Replace all bracketed placeholders** such as `[LANDLORD NAME]`, `[TENANT BUSINESS NAME]`, `[STATE]`, and `[DATE]` with your actual information. 3. **Consult a licensed attorney** in your jurisdiction before signing. This template is a professional starting point, not a substitute for legal counsel. 4. **Negotiate key terms** — particularly rent, lease term, renewal options, permitted use, and tenant improvement allowances — before finalizing. 5. **Initial every page** and have all parties sign in the presence of a notary where required by your state. --- ## 2. Commercial Lease Agreement **This Commercial Lease Agreement ("Agreement")** is entered into as of **[DATE]**, by and between: **LANDLORD:** Name / Entity: **[LANDLORD NAME / LANDLORD COMPANY NAME]** Address: **[LANDLORD ADDRESS]** City, State, ZIP: **[CITY, STATE, ZIP CODE]** Email: **[LANDLORD EMAIL]** Phone: **[LANDLORD PHONE NUMBER]** **TENANT:** Business Name: **[TENANT BUSINESS NAME]** Legal Entity Type: **[LLC / Corporation / Sole Proprietor / Partnership]** Principal Contact: **[TENANT CONTACT PERSON NAME]** Address: **[TENANT MAILING ADDRESS]** City, State, ZIP: **[CITY, STATE, ZIP CODE]** Email: **[TENANT EMAIL]** Phone: **[TENANT PHONE NUMBER]** Collectively referred to as the "Parties." --- ## 3. Premises and Property Description ### 3.1 Leased Premises Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the following described commercial premises (the "Premises"): - **Property Address:** [FULL PROPERTY ADDRESS, CITY, STATE, ZIP] - **Suite / Unit Number:** [SUITE OR UNIT NUMBER, IF APPLICABLE] - **Total Rentable Square Footage:** Approximately [SQUARE FOOTAGE] square feet - **Property Type:** [Retail / Office / Industrial / Warehouse / Mixed-Use / Restaurant] - **Legal Description:** [INSERT LEGAL PROPERTY DESCRIPTION OR PARCEL ID] ### 3.2 Common Areas Tenant shall have the non-exclusive right to use all common areas of the building and property, including parking lots, hallways, restrooms, and loading docks, subject to the rules and regulations set forth by Landlord from time to time. ### 3.3 Parking Tenant shall have access to **[NUMBER]** designated parking spaces located at **[PARKING LOCATION DESCRIPTION]**. Additional parking, if available, shall be provided on a **[first-come, first-served / monthly fee]** basis. --- ## 4. Lease Term and Possession ### 4.1 Commencement Date The lease term shall commence on **[LEASE START DATE]** ("Commencement Date"). ### 4.2 Expiration Date Unless sooner terminated in accordance with the terms hereof, this Lease shall expire on **[LEASE END DATE]** ("Expiration Date"), constituting a total initial term of **[NUMBER] years / [NUMBER] months**. ### 4.3 Holdover Should Tenant remain in possession of the Premises after the Expiration Date without executing a new lease or written extension, such holdover shall be construed as a month-to-month tenancy at **[150%]** of the last monthly Base Rent, and all other terms of this Agreement shall remain in effect. Either party may terminate the holdover tenancy upon **[30]** days' written notice. ### 4.4 Early Possession If Tenant is permitted to occupy the Premises prior to the Commencement Date for the purpose of setup and improvements, such early possession shall not advance the Expiration Date and shall be subject to all terms of this Agreement except the obligation to pay Base Rent, unless otherwise agreed in writing. ### 4.5 Renewal Option Tenant shall have **[NUMBER]** option(s) to renew this Lease for an additional term of **[NUMBER] year(s)** each, provided that: - Tenant is not in default at the time of renewal; - Tenant provides written notice of intent to renew no fewer than **[90]** days prior to the Expiration Date; - Renewal rent shall be negotiated in good faith or adjusted by **[CPI index / fixed percentage increase of [X]%]** per renewal term. --- ## 5. Rent and Payment Terms ### 5.1 Base Rent Tenant agrees to pay Landlord a monthly base rent ("Base Rent") as follows: | Lease Year | Monthly Base Rent | Annual Base Rent | |---|---|---| | Year 1 | $[AMOUNT] | $[AMOUNT] | | Year 2 | $[AMOUNT] | $[AMOUNT] | | Year 3 | $[AMOUNT] | $[AMOUNT] | | Year 4 (if applicable) | $[AMOUNT] | $[AMOUNT] | | Year 5 (if applicable) | $[AMOUNT] | $[AMOUNT] | ### 5.2 Rent Due Date Base Rent is due and payable on the **first (1st) day** of each calendar month. Rent shall be paid in advance without demand, deduction, or offset. ### 5.3 Payment Method Rent shall be paid by **[check / ACH bank transfer / wire transfer / online portal]** payable to **[LANDLORD NAME OR PROPERTY MANAGEMENT COMPANY]** at the address set forth above or as otherwise directed in writing. ### 5.4 Late Fee If rent is not received within **[5]** calendar days of the due date, Tenant shall pay a late fee of **$[LATE FEE AMOUNT] or [5%]** of the monthly Base Rent, whichever is greater. Repeated late payments (more than **[2]** occurrences in a 12-month period) shall constitute an event of default. ### 5.5 Security Deposit Upon execution of this Agreement, Tenant shall deposit with Landlord the sum of **$[SECURITY DEPOSIT AMOUNT]** as a security deposit ("Security Deposit"). This deposit shall: - Be held in a **[interest-bearing / non-interest-bearing]** account; - Not be applied toward rent without Landlord's written consent; - Be returned to Tenant within **[30]** days after lease expiration, less any deductions for unpaid rent, damages beyond normal wear and tear, or costs to restore the Premises. ### 5.6 Additional Rent — Operating Expenses (NNN, if applicable) *[Select applicable lease structure: Gross Lease, Net Lease, Double Net, or Triple Net (NNN). Delete inapplicable provisions.]* **If Triple Net (NNN) Lease:** In addition to Base Rent, Tenant shall pay its proportionate share of: - Real property taxes and assessments; - Building insurance premiums; - Common area maintenance (CAM) expenses, including landscaping, cleaning, security, and repairs. Tenant's proportionate share is calculated as **[TENANT SQUARE FOOTAGE] / [TOTAL BUILDING SQUARE FOOTAGE] = [X]%**. Landlord shall provide an annual CAM reconciliation statement, and any overpayment or underpayment shall be settled within **[30]** days of delivery of such statement. --- ## 6. Permitted Use, Conduct, and Operations ### 6.1 Permitted Use The Premises shall be used solely for the purpose of: **[DESCRIBE SPECIFIC BUSINESS USE — e.g., "operation of a retail clothing boutique," "general business office," "software development office," "full-service restaurant"]** and for no other purpose withou