Commercial Lease Agreement Generator

What is a Commercial Lease Agreement?

A Commercial Lease Agreement is a legally binding contract between a property owner (landlord) and a business tenant that outlines the terms and conditions for renting commercial real estate. The agreement defines rental payments, lease duration, maintenance responsibilities, permitted use of the property, and other critical aspects of the commercial tenancy relationship.

Key Sections Typically Included:

• Premises Description and Square Footage
• Lease Term and Renewal Options
• Rent Structure (Base Rent, Escalations, CAM Charges)
• Security Deposit and Prepaid Rent
• Maintenance and Repair Responsibilities
• Tenant Improvements and Alterations
• Common Area Maintenance Charges
• Utilities and Services
• Insurance Requirements
• Default Provisions and Remedies

Why Use Our Generator?

Our Commercial Lease Agreement generator helps you create a comprehensive document that clearly establishes the terms of your commercial property rental. By defining detailed provisions regarding rent, maintenance, use restrictions, and tenant improvements, both parties can avoid misunderstandings and protect their respective interests in valuable commercial real estate.

Frequently Asked Questions

• Q: What's the difference between gross, modified gross, and triple net (NNN) leases?
  • A: In a gross lease, the tenant pays a fixed rent while the landlord covers most operating expenses. In a modified gross lease, the tenant pays base rent plus some portion of operating expenses. In a triple net (NNN) lease, the tenant pays base rent plus property taxes, insurance, and maintenance costs.
• Q: How are CAM (Common Area Maintenance) charges calculated?
  • A: CAM charges typically include expenses for maintaining common areas (lobbies, hallways, parking lots, etc.) and are usually allocated to tenants based on their percentage of occupied space in the building.
• Q: Should I include a personal guarantee in a commercial lease?
  • A: For tenant companies with limited operating history or assets, landlords often require a personal guarantee from a company principal to secure lease obligations. This is negotiable but important to specify clearly in the agreement if required.