Commercial Lease Agreement Template
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A commercial lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting commercial property. These spaces can include offices, retail stores, warehouses, restaurants, or any other property used strictly for business purposes.
When Is a Commercial Lease Agreement Used?
A business lease agreement can come into play in many situations related to business property rental. Some common scenarios include:
When a small business is opening its first physical location and needs a lease agreement template commercial with the property owner.
If an existing business expands into additional sites and requires specific lease terms that fit operational needs.
When a property owner is leasing space in an office building or shopping plaza to commercial tenants.
If companies sublease their current business space to another business under terms permitted in the original lease.
When temporary business leases are needed for seasonal shops, kiosks, or pop-up stores.
How to Fill Out a Commercial Lease Agreement?
Step 1: Enter party information and effective date
- 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;
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
- 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;
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
- 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;
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
- 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;
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
- Choose a notice period in days for termination by either party;
- Enter the days the Landlord and the Tenant must provide prior written notice;
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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Frequently Asked Questions
You must get a commercial lease agreement template to avoid potential legal issues.
While oral agreements may be legally binding in some cases, having a written commercial lease agreement template is highly recommended. A written commercial lease agreement template clearly records the terms and conditions and is easier to enforce in court if disputes arise.
Terminating a commercial lease agreement typically involves providing written notice to the other party, as the commercial lease agreement template specifies. However, the termination process and notice requirements may vary depending on the lease terms and the applicable state laws. All of these must be properly captured on the commercial lease agreement template. Therefore, it's essential to consult the lease agreement and seek legal advice.
The Americans with Disabilities Act (ADA) does apply to commercial leases. Both landlords and tenants may have responsibilities under the ADA to ensure that the leased property is accessible to individuals with disabilities. It's essential to consult the lease agreement and relevant laws to determine each party's obligations.
A commercial lease agreement template can be sent to the other party via email, postal mail, or a secure document-sharing platform. Ensure both parties have a signed copy of the commercial lease agreement template for their records.