Lease Agreement (Commercial)

Simply complete the Commercial Lease Agreement form below and click View Results to see your completed contract.

LawDepot's Commercial Lease Agreement:

  • Is used as a lease agreement for buildings, office space, retail stores, and other commercial space.
  • Offers customizable options for rent, damage deposit, fixed/periodic tenancy, costs, utilities, rent increases, improvements, signing incentives, options to renew, and more.
  • Is an inexpensive, convenient, and easy-to-use Commercial Lease Agreement.
If the property to be leased is a house, condo, bedroom suite or residential apartment, try our Residential Lease Agreement instead
We regularly maintain this contract. Last Modified: May 2008

Lease Details

Check to Show Hints for Completing this Form
This lease software has the flexibility to let you quickly create the lease document you want. It does this by providing many options with appropriate defaults.
One common default is 'Do Not Specify'. This default means that the finished agreement will not have a clause dealing with that topic. The benefit of not specifying is that you get a shorter and simpler document; however, the document will be less precise. Also, in some cases, the issue is not even applicable. For example, if you do not wish to discuss the topic of "pets" in the Lease, then it is appropriate to pick 'Do Not Specify'.
If you want to fill in a particular item after you have printed the document, you can enter underscore characters (ie. _____).
Lease will be governed by the Laws of: Q. What is the governing law of my lease? A. The governing law will be the jurisdiction in which the property is located, regardless of which jurisdictions the landlord and tenant reside.
Type of Lease Agreement:
Lease Format Q. What additional clauses does the long version include? A. The long version includes several clauses such as obtaining insurance (if you select the long version you will be prompted to answer several questions relating to insurance).
 
The Lease will be drafted in the:
The Long Version of the Lease includes additional clauses and terms that will make your lease more precise, able to deal with more situations and easier to enforce. The Short Version omits those terms that may not be absolutely necessary to express your terms.
Landlord
 
Name:  
Address:
 		  
(e.g. Street, City, State Zipcode)
Phone #:  
Fax #:  
Type:

Number of Landlords: One Two
 
Second Landlord
 
Name:  
Address:
 		  
(e.g. Street, City, State Zipcode)
Note: Only the address and contact information of the first Landlord is used for service.
Type:
Tenant
 
Legal Name:
Operating Name:  
(Name of the Tenant's Business that is used in its advertising)
(Leave blank to omit)
Address:  
(Tenant's Current Address: e.g. Street, City, State Zipcode)
Phone #:
(Leave blank to not mention it)
Fax #:
(Leave blank to not mention it)
Type:

Number of Tenants:
 
Second Tenant
 
Legal Name:
Operating Name:  
(Name of the Tenant's Business that is used in its advertising)
(Leave blank to omit)
Address:  
(Tenant's Current Address: e.g. Street, City, State Zipcode)
Note: Only the address and contract information of the first Tenant is used for service.
Type:
Leased Premises
 
Address of Premises:
(e.g. Suite #, Building Name, Street, City, State Zipcode)

Further Description of Premises:
Attach Diagram of Premises to Lease? Yes No
Describe the Amount of Area in the Premises? Yes No
Area:
Provide the Legal Description of the Premises? Yes No
Legal Description of Premises:
(e.g. Plan A, Block one (1), Lot one (1), excepting thereout all mines and minerals)
Provide Further Details in Describing Premises? Yes No
Other Details Describing the Premises:

Permitted Use of Premises:
(What type of business the Tenant will be conducting in the Premises such as 'brokerage office')

Pets(s) are allowed in Premises?
Parking Available?
Parking Description:  (e.g. stall #323 and #324)
Parking is included in the Rent? Yes No
Monthly Parking Cost:  (e.g. 30.00)
Fixtures Q. What are fixtures? A. In real estate terminology, the word "fixture" refers to a piece of property that is sufficiently permanently attached to the Premises so that to move or remove it would damage the property. If the attached part of the property can be removed without significant damage to the property then it is usually not considered a fixture. Examples of fixtures may include built in cabinets, sinks, toilets or wall-to-wall carpeting. / Leasehold Improvements Q. What are leasehold improvements? A. A leasehold improvement is an expense incurred for the permanent improvement to the leased property. They are considered fixed assets and depreciate in value over the period of the lease. / Chattels Q. What are chattels? A. Chattels are personal property. They are distinct from real property or real estate in that they can be moved from one location to another. Examples of chattels may include blinds or curtains, microwaves, refrigerators, desks and personal computers. / Inventory:
Description of Fixtures and Leasehold Improvements:
Lease Term
 
Type of Lease Term: Q. What does "Automatic Renewal" mean? A. Automatic renewal means that the lease continues indefinitely on the agreed upon period (weekly, monthly, or yearly) until either the tenant or the landlord gives notice to the other party that they will be terminating the lease.
Number of Weeks:
Number of Months:
Number of Years:
  (e.g. 10)
Date Lease Starts:  (e.g. July 1st, 2003)
Date Lease Ends:  (e.g. June 30th, 2005)
Possession (Occupancy) Date:
Enter a possession date only if you want to allow the Tenant to have possession of the Premises BEFORE the lease start date. (e.g. June 30, 2003)
Rent
 
Tenant will Pay this Rent: Q. What is "Base rent"? A. Base rent refers to the minimum or base amount of rent payment as set out in the lease excluding percentage rents or any other additional or operating costs. Q. What is a "percentage lease"? A. A percentage lease refers to a specific type of rental arrangement that applies mainly to retailers, especially in shopping centers or multiple-tenant malls. In a percentage lease, the tenant pays a fixed or base rent plus a percentage of gross income. To create this type of rental arrangement, have the tenant pay "Base Rent plus % of Gross Profits". Q. What is a Gross rent lease? A. A Gross rent lease is a type of commercial lease where the tenant pays the base rent and any specified expenses with respect to the Premises and the landlord pays all other expenses associated with operating and maintaining the property. Operating expenses may include insurance, utilities, maintenance expenses and sometimes taxes.
(With the 'Base Rent Plus Specified Operating Costs' option, you can have only base rent or you can also specify additional charges such as utilities, taxes, maintenance and insurance)

Tenant will Pay Rent Every:
Amount of Weekly Base Rent:
Amount of Monthly Base Rent:
Amount of Base Rent Paid Every 3 Months:
Amount of Base Rent Paid Every 6 Months:
Amount of Yearly Base Rent:
  (e.g. 500.00)

Tenant pays Operating Costs based on:
(Proportionate Share is typically used in a triple net lease)
Annual Operating Cost that Tenant pays per Square Foot:
Annual Operating Costs that Tenant pays per Square Metre:
  (e.g. 3.50)
Percent of Operating Costs that Tenant pays:  (e.g. 10.00)
Tenant pays Operating Costs as follows:
(e.g. Tenant to pay the following operating costs ...)

Percentage of Gross Profit that is Additional Rent:  (e.g. 10.00)

Day of the Week for Payment:
Day of the Month for Payment:
Date for Yearly Payment:
(e.g. Monday, Tuesday)
(e.g. first, tenth)
(e.g. July 1st)
Address for Payment:
(leave blank to not specify it in lease)

Rent Increase
Notice Required to Increase Rent:
Number of Days:  (e.g. 14, 30, 45 or 60)
Built-in rent increases:
Describe Rent Increases:
(e.g. Weeks 1-12 - $100.00, Weeks 13-24 - $125.00, etc.)
(e.g. Months 1-6 - $400.00, Months 6-12 - $500.00, etc.)
(e.g. First Year - $1000.00, Second Year - $1250.00, etc.)

Late Payments
Charges for Late Payment:
Amount of Late Charge:
(e.g. 5%)
(e.g. 2.50)
(e.g. 15.00)
Amount of Late Charge:
Security/Damage Deposit Q. What is a security/damage deposit? A. A security deposit is a sum of money the tenant pays to the landlord to guarantee that the tenant will fulfill all obligations under the lease. The landlord holds the security deposit for the term of the lease to ensure that the tenant does not default on the terms of the lease agreement or otherwise damage the property. Should the tenant damage the property (normal "wear and tear" excluded) or if the Tenant has not paid rent, the landlord is entitled to recoup the debt from the security deposit. Usually the tenant must provide the landlord with the security deposit at the start of the lease term. At the end of the lease term, the tenant will receive the deposit back minus any deductions for repairs/restoration.
 
Advance Rent:
Security/Damage Deposit? Yes No
Inspection Report Required? Q. What is an inspection report? A. The inspection report is completed by the tenant within a reasonable amount of time after the tenant takes possession of the property. This form contains a description of the condition of the property at the time of the tenant's possession, and is used at the end of the lease term as a comparison tool to determine if the tenant caused any damage to the property. The tenant should ensure that all damage is properly disclosed in this report to prevent a landlord from assuming the tenant has caused the damage.
Taxes
 
Taxes payable by Tenant? Specify Do Not Specify
Tenant pays taxes directly to the Landlord? Yes Do Not Specify
Tenant is to pay which taxes directly to the Landlord?:
Those Taxes are: Included in Rent In Addition to Rent

Tenant pays taxes directly to the Gov't? Yes Do Not Specify
Tenant is to pay which taxes directly to the Government?:

Landlord Improvements and Signing Incentives Q. What is a signing incentive? A. A signing incentive is an incentive given to the tenant to enter into the lease, such as a month's free rent.
 
Required Landlord Improvements:
Description of Landlord Improvements Required:
You may want to specify when the improvements need to be completed as part of the above description.
Signing Incentives:
How many weeks of free Base Rent?
How many months of free Base Rent?
How many quarters of free Base Rent?
How many semi-annual installments of free Base Rent?
How many years of free Base Rent?
 (e.g. 1, 2, etc.)
Description of Signing Incentives:
(e.g. one month free rent, an improvement allowance for painting, etc.)
Tenant Improvements
 
Can the Tenant make Improvements?
Terms Regarding Tenant Performing Improvements:
Termination
 
Notice for non-payment: (e.g. 3 days)
Notice for other lease breaches: (e.g. 10 days)
Landlord's Notice without Cause: (e.g. 30 days, one month, etc.)
Tenant's Notice without Cause: (e.g. 15 days)
Utilities and Other Costs
 
Who is responsible for paying the following utilities for the Premises?
  Tenant Landlord Do Not Specify
Electricity
Natural Gas
Water
Sewer
Telephone
Internet
Cable
Other Expenses
(e.g. collection and disposal of garbage from the Premises)
Maintenance
 
Tenant is Responsible for Maintenance: Yes Do Not Specify
Specify which Maintenance the Tenant is to perform or pay for:
  Yes Do Not Specify
Fixtures / Heating:
Sidewalk / Driveway:
Grass / Garden:
Other:
Specify other Maintenance the Tenant is to perform or pay for:
Insurance
 
Who is responsible for obtaining and paying for the following insurance?
  Tenant Landlord Do Not Specify
Tenant's Contents:  
Landlord's Contents:
Leased Premises:
Personal Injury on Property:
Tenant to Provide Proof of Insurance:
Miscellaneous
 
Notice to Enter (non-emergency):
Number of Hours: (e.g. 12, 24 or 48)

Tenant has Option to Renew Lease:
Details of Option to Renew:

Payment of Legal Costs/Attorney Fees:

Tenant can AssignQ. What is assigning a lease? A. Assigning the lease refers to the complete transfer of all rights to occupy the premises for the rest of the term from the current tenant to a third party. /SubleaseQ. What is subleasing a lease? A. A sublease is when the rights to use the property (or a part of the property) under a lease, is transferred by the current tenant to a third party for a portion of the remaining term of the lease.  the Lease:

Tenant to have Carpets Professionally Steam Cleaned: Yes No Q. When would the tenants have to have the carpets professionally steam cleaned? A. The tenants will be required to have the carpets professionally steam cleaned before the final move-out inspection occurs.
Tenant to have Exclusive Use in Building: Yes No
(No other tenant in the Building will be able to conduct as its principal business the same Permitted Use as this Tenant)

Tenant's Shareholders to execute personal guarantees? Q. What is a shareholder's personal guarantee? A. A shareholder's personal guarantee is a promise made by a shareholder (or shareholders) to personally repay any rent or damage the corporate tenant may owe under the lease.
You will need to attach a form of the Personal Guarantee for the shareholders as a schedule to this lease.
The cost of that guarantee is not included in the cost of this commercial lease.
Additional Clauses
 
How many Additional Clauses do you want to create?
First Additional Clause:
Second Additional Clause:
Third Additional Clause:
Fourth Additional Clause:
Fifth Additional Clause:
Sixth Additional Clause:
Signing Details Q. Who should sign the lease? A. Both the landlord and the tenant should sign the lease. Having witnesses to the parties' signatures provides greater evidence that the parties entered into the lease.
 
Agreement to be signed?
Q. I do not know when the lease will be signed. Can I fill in the date later? A. Yes, by selecting 'Unsure' as the date the agreement will be signed, a blank line will be inserted into the lease so that you can add the correct date after printing the document.