Commercial Lease

A Commercial Property Lease Agreement creates a commercial tenancy agreement between a landlord and a tenant.

We have been involved in the negations of with over 100 commercial leases from the initial stages through to the agreement of the commercial lease, be it Industrial Warehouses, Retail units, Restaurants and even Public Houses.

The terms of the lease are the most important for both Landlord and Tenant.

A commercial lease is a legally binding agreement between a landlord and a business tenant for the rental of property used for commercial purposes — such as offices, retail stores, warehouses, or industrial facilities. Unlike residential leases, commercial leases tend to be more complex and are often less regulated, giving both parties more freedom to negotiate terms.

Key Elements of a Commercial Lease

Parties Involved: Clearly identify the landlord (lessor) and tenant (lessee).
Property Description: Legal and physical address, square footage, and included amenities.
Lease Term: Duration of the lease (e.g., 3, 5, or 10 years) and options to renew.

Rent Amount & Increases:

Base rent
Escalation clauses (e.g., annual increases or tied to inflation/indexes)

Type of Lease

Gross Lease: Tenant pays rent; landlord covers most expenses.
Net Lease: Tenant pays rent plus some or all of taxes, insurance, and maintenance (often categorized as single, double, or triple net leases).
Percentage Lease: Common in retail—tenant pays base rent plus a percentage of revenue.

What to Consider Before Signing

Rent and Hidden Costs:

Are utilities, maintenance, property taxes, and insurance included or extra?
Look for "CAM" (Common Area Maintenance) charges if in a shared space.
Lease Term and Flexibility.
Long leases offer stability but reduce flexibility.
Check for early termination clauses or subletting options.

Improvements and Modifications

Who pays for renovations?
Can the tenant modify the space to suit their needs?
Maintenance Responsibilities:
Who handles structural repairs, HVAC, plumbing, etc.?

Permitted Use Clause

Ensure the lease allows your specific type of business.

Exclusivity Clause

Can you ensure that competitors won’t lease nearby units?

Renewal Options

Does the lease give you the right to renew on favorable terms?

Dispute Resolution

Arbitration, mediation, or court? Consider how disputes will be handled.

Exit Strategy

Understand what happens if you need to break the lease.

WHAT OUR CUSTOMERS HAVE TO SAY

Check out some of our excellent feedback from local businesses

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Commercial Lease