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Jurisdiction-neutralreal-estate

Commercial Lease Agreement Template

Free commercial lease agreement template for office, retail, or industrial spaces. Covers rent, CAM charges, build-out, use restrictions, and renewal options.

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Commercial Lease Agreement


1. Premises and Permitted Use

This Commercial Lease Agreement ("Lease") is made on [Date] between [Landlord Name/Entity] ("Landlord") and [Tenant Name/Entity] ("Tenant"). The Landlord leases to the Tenant the premises located at [Address], comprising approximately [X] square feet (the "Premises"), for the sole purpose of operating [type of business]. The Tenant shall not change the permitted use without the Landlord's prior written consent.

2. Rent and CAM Charges

Base rent shall be [Currency] [Amount] per month ([Rate] per square foot per annum). Rent is due on the first day of each month. In addition to base rent, the Tenant shall pay its proportionate share ([X]%) of Common Area Maintenance (CAM) charges, which include property taxes, insurance, maintenance, landscaping, and utilities for common areas. CAM charges are estimated at [Amount] per month, reconciled annually.

3. Lease Term and Renewal

The initial lease term shall be [3/5/10] years, commencing on [Start Date]. The Tenant shall have the option to renew for [1/2] additional term(s) of [5] years each, exercised by providing written notice at least [180] days before the current term expires. Rent for renewal terms shall be adjusted to [fair market value / a [3-5]% annual increase / CPI adjustment].

4. Build-Out and Improvements

The Landlord shall provide a tenant improvement allowance of [Currency] [Amount] per square foot for initial build-out. Improvements exceeding this allowance are at the Tenant's expense. All improvements become the Landlord's property upon installation unless the Lease specifies removal. The Tenant must obtain the Landlord's written approval for all alterations and use licensed contractors.

5. Maintenance and Repairs

The Landlord shall maintain the building structure, roof, exterior walls, and building systems (HVAC, plumbing, electrical). The Tenant shall maintain the interior of the Premises, including flooring, interior walls, fixtures, and any equipment installed by the Tenant. The Tenant shall keep the Premises in clean and orderly condition and comply with all health and safety regulations.

6. Default and Remedies

The Tenant shall be in default if: (a) rent remains unpaid for [10] days after due date; (b) Tenant breaches any other term and fails to cure within [30] days of notice; (c) Tenant abandons the Premises; (d) Tenant files for bankruptcy. Upon default, the Landlord may: terminate the Lease, re-enter and re-let the Premises, and recover all damages including lost rent for the remaining term.

Signature — Party A

Signature — Party B

Tips for Using This Template

  • Negotiate a rent-free period during build-out to offset the time before you can begin operating.
  • Carefully review CAM charges - ask for a cap on annual increases and the right to audit the landlord's calculations.
  • Include an assignment and subletting clause in case your business needs change during the lease term.
  • Request an exclusive use clause to prevent the landlord from leasing to a direct competitor in the same building.

Frequently Asked Questions

What is the difference between a gross lease and a net lease?
In a gross lease, the landlord pays all operating expenses and rolls them into the rent. In a net lease (NNN), the tenant pays base rent plus their share of taxes, insurance, and maintenance. This template uses a modified gross structure with separate CAM charges.
Can I sublease my commercial space?
Only if the lease permits it. Most commercial leases require the landlord's consent for subleasing. Include subletting rights in your negotiations, as business needs may change over a long lease term.
What happens if I need to break the lease early?
Without an early termination clause, you may be liable for rent for the entire remaining term. Negotiate a termination option with a reasonable penalty (typically 3-6 months' rent) before signing.

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Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.

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