About Commercial Lease Agreements

A commercial lease agreement is a contract that allows businesses to rent properties for commercial activities, distinguishing it from residential leases meant for housing. It highlights the flexibility and negotiability of commercial leases, which can be tailored extensively compared to the more regulated residential leases. Commercial tenants, ranging from small businesses to multinational corporations, must negotiate their leases carefully to ensure it includes all necessary provisions, as they generally lack legal protections outside of what's explicitly stated in the agreement.

Differences between commercial and residential leases include less regulation and more customization in commercial leases, and the absence of tenant protections beyond the lease terms. Certain states may require landlord disclosures for commercial leases, focusing on public health and safety issues.

Commercial leases come in various types, including net leases (where tenants pay rent plus taxes, insurance, and/or maintenance costs), double net leases, triple net leases, percentage leases (where rent is based on the tenant's sales), and fully serviced leases that include utilities and services.

Key terms in a commercial lease cover the lease term, rent amount and adjustments, other costs (like insurance, taxes, and maintenance), and security deposits. Leases also specify permitted and exclusive uses, responsibilities for maintenance and renovations, insurance requirements, exterior appearance, ADA compliance, and the conditions for personal guarantees by tenants.

Changes to the lease generally require tenant agreement, and tenants have specific rights and obligations regarding lease termination, subleasing, and modifications. Dispute resolution can vary, with some leases including arbitration clauses.

Contact Michael Guidicelli, CCIM, SIOR to inquire on commercial real estate leasing: 860.371.7103 or michael@regionscommercial.com


Regions Commercial brings our experience, expertise and access to high-tech tools & databases to every property search and listing, ensuring you get the results you want, fast.

Contact Us