Commercial Lease Agreement Template

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A commercial lease agreement allows a business to rent a space — like an office, shop, or warehouse — from a landlord.It explains the rules, the rent amount, and how long the business can stay in that space. The use of a business lease agreement template helps avoid problems by clearly stating who takes care of what, who pays for repairs, and what happens if someone wants to end or extend the contract.
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What Is a Commercial Lease Agreement?

A business lease agreement is a contract between a lessor (the person who owns the property) and a lessee (the person or business renting the space). It gives the lessee the right to use the property for business purposes — not for living in it.

A lease agreement template commercial type spells out the rent, how long the lessee can stay, and what each party is responsible for. It's a key document for small business owners, shopkeepers, salon owners, and others who need a physical place to work.

When Do I Need a Commercial Lease Agreement?

A simple commercial lease agreement can be useful if you:

  • Open a new store, café, or restaurant; 

  • Rent an office for a start-up company;

  • Lease a garage or workshop for a small business;  

  • Let out empty commercial space to make rental income; 

  • Move business operations to a new location.

A commercial rental agreement protects both the property owner and the lessee and helps them to solve legal disputes if any occur.

What Should Be Included in a Commercial Lease Agreement?

A well-drafted commercial lease form covers all the important details of the deal, such as:

  • Full names and contact details of the landlord and tenant;

  • Property address and description;

  • Length of the lease (example: one year, three years);

  • Monthly rent amount and due date;

  • Security deposit amount;  

  • Rules about property maintenance; 

  • What the tenant can use the space for (retail, office, food service); 

  • Who pays for utilities, repairs, taxes, and insurance;

  • What happens if someone breaks the agreement;

  • Option to renew the lease or end it early.

How to Write a Commercial Lease Agreement

Step 1: Enter party information and effective date

Part of the simple commercial lease agreement pdf
  • Enter the Effective Date — the date the commercial lease template becomes legally active;
  • Fill in the simple commercial rental agreement the Landlord’s full name and residential address;
  • Fill in the Tenant’s full name and residential address;
Example:

This simple commercial lease agreement is entered into on April 25, 2024 ("Effective Date") by and between

Paul Sanders, residing at 56 Willow Crest Dr, Chicago, IL 60601 (the "Landlord") and
Jasmine Lee, residing at 3908 Oak Grove Ave, Chicago, IL 60603 (the "Tenant").

Step 2: Describe the premises and purpose

Part of the commercial lease agreements
  • Enter a description of the rented commercial space (e.g., Suite number, unit, square footage);
  • Write the property address where the leased premises are located;
  • Indicate in the commercial rental agreement  the commercial purpose for which the Tenant will use the space;
Example:

The Premises mean the following space: Suite B-205, 1,800 sq. ft. office.
The Premises are located at the following address: 100 Main Avenue, Chicago, IL 60601.
The Premises are used by the Tenant for the following commercial purpose: graphic design firm and client meetings.

Step 3: Define lease term and lease fee

Part of the commercial lease form
  • Enter the Commencement Date (start of occupancy);
  • Enter the End Date (termination of lease, if fixed-term);
  • Fill in the monthly lease fee and the day of the month when payment is due;
Example:

The Tenant shall occupy the Premises starting on May 1, 2024 (the "Commencement Date") and ending on April 30, 2025 (the "End Date").

The Tenant shall pay a fixed rent (the "Lease Fee") of $2,500 per month.
Payments will be due on the 5th day of each month (the "Due Date").
All payments will be made on or before the Due Date in cash or by bank transfer.

Step 4: Assign parking spaces and payment

Part of the commercial lease agreement pdf
  • Specify the number of parking spaces allocated to the Tenant;
  • State the fee per space, if applicable;
  • Confirm that the parking fee is to be paid with the lease;
Example:

The Landlord delivers into possession of the Tenant 2 parking spaces near the Premises.
The Tenant shall not use more than 2 designated spaces.
Tenant shall pay $75 for one space.
Payment for the Spaces should be made along with the Lease Fee.

Step 5: Termination terms

Part of the commercial lease agreement pdf
  • Choose a notice period in days for termination by either party;
  • Enter the days the Landlord and the Tenant must provide prior written notice;
Example:

The Agreement may be terminated by mutual written consent.

The Landlord may terminate this Agreement unilaterally upon providing 30-day written notice to the Tenant.
The Tenant may terminate this Agreement unilaterally upon providing 30-day written notice to the Landlord.

Have both the Landlord and Tenant sign and date the commercial lease agreement template.

Each party should retain a signed copy of the business lease agreement template.

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