Can a landlord refuse to consent to a sublease?

It depends on the lease terms. If the lease requires landlord consent, most states impose an implied covenant that consent cannot be unreasonably withheld. Landlords may typically deny consent if the proposed subtenant has poor credit, intends to use the space for a prohibited purpose, or would compete with other tenants under an exclusive-use clause. The lease should specify the criteria and timeline for responding to sublease requests.

What are CAM charges and how are they calculated?

Common Area Maintenance (CAM) charges are fees paid by tenants for their proportionate share of maintaining shared areas such as parking lots, lobbies, elevators, and landscaping. They are typically calculated as the tenant's leased square footage divided by the total leasable square footage of the building, multiplied by total CAM expenses. Tenants should negotiate a CAM cap (annual increase limit) and audit rights to verify calculations.

Is a commercial lease enforceable without a written agreement?

Under the Statute of Frauds, leases for a term longer than one year must be in writing to be enforceable. While oral month-to-month commercial tenancies may be valid in some states, any long-term commercial lease should always be in writing to protect both parties. Unwritten agreements create significant risk of disputes over rent, maintenance, and permitted use.

What happens if the tenant stays past the lease expiration date?

If a commercial tenant remains in the premises after the lease expires without executing a renewal — known as 'holdover' tenancy — most leases and state laws convert the tenancy to a month-to-month arrangement, often at 125–150% of the last month's rent. Landlords may also sue for holdover damages. Tenants should provide timely notice of intent to vacate or negotiate a lease extension well before expiration.

Does the ADA apply to my commercial lease?

Yes. The Americans with Disabilities Act (42 U.S.C. § 12101) requires that places of public accommodation and commercial facilities be accessible to individuals with disabilities. Both landlords and tenants may bear ADA compliance responsibilities depending on the lease terms. Tenants operating a public-facing business generally bear responsibility for removing barriers in the leased space, while landlords typically bear responsibility for common areas.

Can I negotiate free rent or a tenant improvement allowance?

Yes — both are common in commercial lease negotiations, especially in markets with high vacancy. Free rent (rent abatement) is a period at the start of the lease where no rent is owed, allowing time to build out and open the business. A tenant improvement (TI) allowance is a cash contribution from the landlord toward the cost of customizing the space. Both items should be specified in the lease with clear dollar amounts, timelines, and conditions.

Free Commercial Lease Agreement Template — Fill Out & Download Instantly

Free — No Sign-Up RequiredPDF & Word

A Commercial Lease Agreement is a legally binding contract between a landlord and a business tenant that governs the rental of commercial property such as retail storefronts, office suites, industrial warehouses, and mixed-use spaces. Unlike residential leases, commercial leases are heavily negotiated and typically cover complex provisions including base rent, Common Area Maintenance (CAM) charges, tenant improvement allowances, permitted use restrictions, assignment and subletting rights, and renewal options.

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Legal Disclaimer: This template is attorney-reviewed and built to US legal standards. It does not substitute for professional legal advice — for complex situations, we recommend consulting a licensed attorney.

What Is a Commercial Lease Agreement?

When Do You Need It?

You need a Commercial Lease Agreement whenever a business is renting non-residential property. Common situations include opening a retail store, restaurant, or salon; leasing office space for a startup or established company; renting warehouse or industrial space for manufacturing or distribution; entering into a medical or dental office lease; or subletting commercial space to another business. A written commercial lease protects both landlord and tenant by clearly defining rent obligations, maintenance responsibilities, permitted uses, and exit provisions before the tenant takes possession..

What's Included in This Template

Landlord and tenant (business entity) identification
Property address and full legal description
Lease type (gross, net, triple-net, modified-gross)
Base rent amount and payment schedule
CAM charges and operating expense provisions
Lease term with start and end dates
Security deposit terms
Permitted use and exclusive use clause
Tenant improvement allowance provisions
Maintenance and repair responsibilities
Insurance requirements for both parties
Assignment and subletting rights
Optional: Option to renew with renewal terms
Default, cure period, and remedies
Holdover tenancy provisions
Governing law and dispute resolution
Signature blocks with notary acknowledgment

How to Fill It Out

Select the Governing State — Choose the state where the leased property is located. Commercial landlord-tenant laws vary significantly by state and affect everything from security deposit limits to eviction procedures.

Enter Landlord and Tenant Information — Provide the full legal name of the landlord (individual or LLC/corporation) and the tenant's business entity name, registered address, and contact details. Use the legal entity name exactly as registered with the state.

Describe the Property — Enter the complete street address and, if applicable, suite number or unit designation. Specify the property type (retail, office, industrial, warehouse, or mixed-use) to apply the correct standard provisions.

Select the Lease Type and Rent — Choose the lease structure — gross (all-inclusive), net (tenant pays some operating costs), triple-net (tenant pays taxes, insurance, and maintenance), or modified-gross (negotiated split). Enter the base monthly rent and any applicable CAM charges.

Set the Lease Term and Deposit — Enter the lease start date, end date, and security deposit amount. Commercial leases commonly run 1–10 years, so confirm term length carefully before signing.

Define Permitted Use and Improvements — Specify exactly what business activities the tenant is authorized to conduct on the premises. If the tenant is making improvements, describe the scope of work and who bears the cost.

Configure Optional Clauses — Enable the option-to-renew clause and describe renewal terms if applicable. Toggle assignment/subletting permissions and specify insurance minimums required of both parties.

Legal Requirements & Notes

Commercial leases are governed primarily by state common law and the Uniform Commercial Code (UCC) Article 2A (leases), though most states have enacted specific commercial landlord-tenant statutes. Unlike residential leases, commercial leases are subject to minimal consumer-protection restrictions, and terms are largely freely negotiable. Key legal considerations include: (1) ADA compliance — both landlord and tenant may bear obligations under the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.) depending on lease structure; (2) CAM charge transparency — many states now require landlords to provide annual CAM reconciliation statements; (3) UCC Article 9 security interests may apply to tenant fixtures; (4) Environmental liability — CERCLA (42 U.S.C. § 9601) may impose cleanup obligations; (5) Zoning and use — tenant must independently verify permitted use with local zoning authorities; (6) Personal guarantees — lenders often require personal guarantees for business leases. This template is provided for informational purposes only and does not constitute legal advice. Consult a licensed real estate attorney in your state before executing any commercial lease.

Frequently Asked Questions

In a gross lease, the landlord pays all operating expenses (taxes, insurance, maintenance) and the tenant pays a single all-inclusive rent. In a triple-net (NNN) lease, the tenant pays base rent plus real property taxes, building insurance premiums, and maintenance costs separately. NNN leases are common in retail and industrial properties and transfer most operating-cost risk to the tenant. Modified gross leases split certain expenses between the parties.

Free Commercial Lease Agreement Template — Fill Out & Download Instantly

COMMERCIAL LEASE AGREEMENT

1. PREMISES

2. LEASE TYPE

3. LEASE TERM

4. RENT

5. PERMITTED USE

6. MAINTENANCE AND REPAIR

8. INSURANCE

9. ASSIGNMENT AND SUBLETTING

10. DEFAULT AND REMEDIES

12. GOVERNING LAW

13. ENTIRE AGREEMENT

LANDLORD:

TENANT: