What is a Commercial Lease Agreement?
A Commercial Lease Agreement is a legally binding contract between a landlord and a business tenant. It outlines the terms and conditions for renting a commercial property, such as office space, retail stores, warehouses, or industrial facilities.
This agreement specifies key details, including rent amount, lease duration, permitted property use, and maintenance responsibilities. It also defines other essential terms that govern the landlord-tenant relationship. If you need a commercial lease agreement template, using a structured form ensures all necessary terms are included.
Alternative Names for Commercial Lease Agreements:
- Modified Gross Lease Agreement (if some expenses are shared)
- Business Lease Agreement
- Commercial Rental Agreement
- Commercial Property Lease
- Triple Net Lease (NNN) Agreement (if the tenant covers taxes, insurance, and maintenance)
- Retail Lease Agreement (for retail businesses)
- Office Lease Agreement (for office spaces)
- Industrial Lease Agreement (for warehouses or manufacturing spaces)
- Net Lease Agreement (if it includes additional costs like taxes and maintenance)
When Do You Need to Use a Commercial Lease Agreement Form?

A Commercial Lease Agreement Form is necessary whenever a business owner or tenant rents a property for commercial use. Below are common scenarios where this document is required:
Leasing Office Space –
– If a business needs a dedicated office, a lease agreement ensures legal occupancy. It also sets terms for rent, utilities, and property use.
Renting a Retail Storefront –
– Businesses opening a physical store, such as a clothing shop or restaurant, need a lease agreement. This document defines rent terms, operational rules, and tenant responsibilities.
Leasing Industrial or Warehouse Space –
– Businesses using space for manufacturing, storage, or distribution must clarify lease terms. A lease agreement outlines usage restrictions, maintenance duties, and operational guidelines.
Subleasing a Commercial Property –
– If a tenant rents out part of their leased space, a Sublease Agreement is required. In most cases, landlord approval is necessary before subleasing.
Long-Term Business Occupancy –
– Companies planning to stay in a location for years need a lease agreement. It ensures stability and protects them from sudden rent hikes or eviction.
Short-Term or Temporary Business Rentals –
– Even for temporary setups (e.g., pop-up shops, seasonal businesses), a lease agreement protects both the landlord and the tenant from disputes.
Protecting Both Parties’ Rights –
– The agreement legally defines rent amount, security deposit, lease duration, maintenance responsibilities, and conditions for renewal or termination.
Complying with Local Laws –
– Many jurisdictions require a written agreement for leasing commercial property to protect the interests of both parties.
Why Would Someone Need a Commercial Lease Agreement Form?
Commercial Lease Agreements are essential for establishing a legally binding contract between landlords and tenants when renting a commercial property. It protects both parties by defining rights, obligations, and dispute resolution procedures.
The agreement outlines key lease terms, including rent, payment schedules, security deposits, and additional costs while ensuring compliance with local laws and zoning regulations. It also sets clear rules for property usage and maintenance, preventing unauthorized modifications or legal issues.
Additionally, the lease provides financial security by specifying rent adjustments, late fees, and guarantees, offering stability for businesses and landlords alike. If you’re looking for a commercial lease template, using a pre-structured document can help simplify the process and ensure accuracy.
What are the Main Things That Go on a Commercial Lease Agreement Form?

A Commercial Lease Agreement Form includes essential terms that outline the rental terms and responsibilities of both parties:
- Rent Clause – Specifies the base rent, whether it remains fixed, and any additional charges like insurance, property taxes, or maintenance fees.
- Lease Term – Defines the lease duration, start and end dates, and whether either party can extend or terminate the contract.
- Security Deposit – Details the required amount, who pays it, and the deadline for payment.
- Premises Clause – Clarifies whether the tenant is leasing the entire building or a specific portion, ensuring all necessary location details are included.
What are the Most Common Mistakes to Avoid?
When signing a simple Commercial Lease Agreement, avoid these specific mistakes:
Underestimating Additional Costs – Many leases require tenants to cover property taxes, insurance, or maintenance, increasing overall expenses.
Ignoring Exclusivity Clauses – Without one, landlords can lease nearby spaces to direct competitors, hurting business.
Overlooking Sublease Restrictions – Some agreements prohibit subleasing, limiting flexibility if the tenant needs to downsize or relocate.
Missing a Co-Tenancy Clause – In retail leases, failing to secure this clause could leave tenants stuck if anchor businesses leave or the shopping center declines.
Vague Repair Responsibilities – If not clearly defined, tenants may be liable for costly structural repairs typically handled by landlords.
Do I need to use a lawyer, accountant or notary to help me?
It’s not legally required, but hiring a lawyer helps review lease terms, an accountant ensures financial feasibility, and a notary may be needed if local laws require notarization.
You can easily create your simple commercial lease agreement online without hiring any lawyer, accountant, or notary. Using a tool like ours creates a legally binding form and saves you money because you don’t have to hire anyone.
Why Use Our Commercial Lease Agreement Generator?
Our user-friendly Commercial Lease template is designed by legal and business experts, giving you a professional lease at a fraction of the cost of hiring an attorney. FormPros offers an affordable subscription plan, so you can create unlimited commercial lease agreements for a low monthly fee. If you’re looking for a simple commercial lease, our platform ensures you get a reliable, attorney-approved document without the hassle.
Create a Commercial Lease Agreement Now
FormPros Has You Covered
Simplify your paperwork with FormPros! From creating paystubs, W-2s, and 1099-NEC forms to generating LLC Operating Agreements and even voided checks, our easy-to-use platform has you covered. Save time, reduce errors, and handle your business documents with confidence. Start now and see how FormPros makes professional form generation fast, affordable, and hassle-free!
Commercial Lease Agreement FAQs
-
Can a Commercial Lease Agreement be modified after signing?
Yes, a commercial lease agreement can be modified, but any changes must be agreed upon by both the landlord and the tenant. Modifications should be documented in a written lease addendum and signed by both parties to ensure legal enforceability.
-
What happens if a tenant breaks a Commercial Lease early?
If a tenant breaks a commercial lease before the agreed term ends, they may be responsible for remaining rent payments, lease termination fees, or finding a replacement tenant. The specific penalties depend on the lease agreement’s terms, and in some cases, tenants can negotiate an early termination clause in advance.
-
Are personal guarantees required for Commercial Leases?
Many landlords require a personal guarantee, especially for small businesses or new companies with limited credit history. This means the business owner is personally liable for lease obligations if the business fails to pay rent or defaults on the lease.
-
Can a Commercial Lease be transferred to another business?
Some leases allow lease assignment, meaning a tenant can transfer their lease to another business. However, many agreements require the landlord’s approval before an assignment can take place, and some leases may include restrictions or additional fees for this process.
-
What is the difference between a Commercial Lease and a Residential Lease?
A commercial lease is intended for business use and typically includes longer terms, fewer legal protections for tenants, and more complex financial obligations like property taxes and maintenance costs. In contrast, a residential lease focuses on housing and often includes stronger tenant protections under local rental laws.