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.
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.
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.
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").
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.
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.
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.
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.