Commercial Lease Agreements

A commercial lease agreement is a legally binding contract between a landlord and a tenant for the purpose of renting retail, industrial, or office space. Renting out a commercial space differs from residential leases, and before you sign a commercial lease agreement, you should understand the basics of these unique legal contracts. It is important to note that the laws surrounding commercial lease agreements can be complex, and contacting an experienced real estate attorney at Thaler Law can help you understand your rights and create a legally binding lease that works in your best interest. 

Finding a Tenant

for Your Commercial Property

Each commercial property space is unique and, therefore, will cost different amounts to lease and have different applicable terms in the commercial lease agreement. However, once you have established that you want to lease a property, here are some steps to successfully leasing your commercial space: 

  1. Determine the amount of space available
  2. Determine the price per square foot
  3. Determine if the rent will include insurance, real estate taxes and maintenance of the property. Two types of leases are the gross lease (tenant only pays a monthly amount for property) and Triple (NNN) Lease (tenant pays the monthly amount plus real estate taxes, insurance, and maintenance). 
  4. Market the property. You can attempt to do this yourself or hire a marketing agent or attorney to assist you in this process. 
  5. List the property
  6. Negotiate the lease with a willing buyer
  7. Perform a credit check on both the business and the individual 
  8. Approve the tenant and request a security deposit
  9. Write the commercial lease agreement, with the assistance of an experienced real estate attorney

Required Clauses

In a Commercial Lease Agreement

There are two required clauses in any commercial lease agreement.  

  • Americans with Disability Act (42 U.S. Code § 12183) – This law requires that any property that has “public accommodation” must have handicapped access available.
  • Hazard Waste (42 U.S. Code § 6901) – This law requires the tenant to agree in writing that they will not dispose of any hazardous waste in ways that violate any federal, state or local laws. 

Commercial Leases vs.

Residential Leases

There are many differences between a commercial lease agreement and a residential lease.  Specifically, a commercial lease agreement differs from a residential lease in the following ways:

  • No standard forms: Carefully examine your legal agreement as each one has been uniquely tailored to fit the lease in question.
  • Longer-term: Typically, more money is at stake, and therefore, it is more difficult to break a commercial lease.
  • Fewer consumer protection laws: Consumer protection laws that apply to residential leases do not apply to commercial lease agreements. 
  • Negotiation and flexibility: Due to the unique nature of each business, there is more flexibility within negotiations of the lease.

Contact Thaler Law

Creating a commercial lease agreement and navigating the complex real estate laws that surround them can be a confusing and challenging process. Whether you are a property owner, or a tenant looking to rent commercial property, visiting with an experienced real estate attorney from Thaler Law, can help you understand your legal rights regarding commercial lease agreements. Contact us at 866-271-5290 or online today for a consultation. 

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Whether you need a strong defense of your business interests or assistance with everyday issues such as contract review, Thaler law is here for you. To schedule a free initial consultation, call (714) 869-2900 or complete our online contact form.