When should I use a commercial lease agreement?

Use a commercial lease for office, retail, or warehouse space. Do not use this for a residential apartment or house. Local landlord-tenant statutes and the building’s rules still apply. Sources: Cornell LII: Contract (https://www.law.cornell.edu/wex/contract); FAR Part 37: Service Contracting (Acquisition.gov) (https://www.acquisition.gov/far/part-37).

Can I download this commercial lease agreement template?

Yes. Use Download .docx to get a Word file with placeholders such as [Party A] and [Effective Date]. You can edit it in Word or Google Docs, or create a filled-in version in the free contract creator (https://www.formabledocs.com/contract-creator/commercial-lease-agreement).

Is the sample legally binding as shown?

No. Placeholder sample text is a starting point. It becomes an agreement for your deal after you fill in the details—manually or in the free contract creator—and the parties sign. Commercial leasing is heavily local. This sample is a starting point, not a state-specific form. Sources: Cornell LII: Contract (https://www.law.cornell.edu/wex/contract); FAR Part 37: Service Contracting (Acquisition.gov) (https://www.acquisition.gov/far/part-37).

When should I use the free contract creator instead of editing the file?

Use the free contract creator if you want guided choices for who you are, the premises, rent, term, permitted use, and governing law, without hunting through every blank yourself.

Commercial Lease Agreement

Commercial premises, rent, term, permitted use, maintenance, and tenant insurance. Not a residential lease.

Create contract for free

What this contract contains

Preamble and parties. Names the lease and each party as Landlord or Tenant. Choose your side in the creator.

Premises. Identifies the space being leased. You describe the premises in the creator.

Term. The term is 12 months. A holdover is month to month at 150 percent of the then-current rent.

Rent. Base rent is due on the first of the month. A payment more than 5 days late may include a late fee.

Use. The tenant uses the space only for the permitted purpose.

Maintenance. The tenant keeps the interior. The landlord maintains the structure, roof, and common areas.

Alterations. Cosmetic changes are allowed. Other changes need the landlord's written consent.

Assignment. The tenant may not assign or sublet without the landlord's written consent.

Insurance. The tenant carries liability insurance. The landlord insures the building.

Casualty. Rent abates for the part that cannot be used. Either side may end the lease if it is not usable again within 90 days.

Default. The landlord may end the lease for unpaid rent or another breach that is not cured.

Surrender. The tenant leaves the space empty and broom-clean, ordinary wear excepted.

Governing law. Sets the state law that governs the commercial lease and where disputes must be brought. Choose the jurisdiction in the creator.

General. Covers assignment limits, waiver rules, severability, entire agreement language, notices, and counterpart or electronic-signature execution language.

Signature blocks. Authorized signatory and title lines for each party, ready for wet-ink or e-signature fields.

COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement (the "Lease") is entered into as of [Effective Date] (the "Effective Date"), by and between:

[Party A], a corporation ("Landlord"), and

[Party B], a corporation ("Tenant").

The Landlord agrees to lease the Premises to the Tenant, and the Tenant agrees to lease them, on the terms of this Lease.

1. Premises. The Landlord leases to the Tenant [description of the premises] (the "Premises"). The Tenant accepts the Premises in their as-is condition except for latent defects the Landlord knew about and did not disclose.

2. Term. The term is 12 months beginning on the Effective Date. The Tenant may not hold over without the Landlord's written consent. A holdover is a month-to-month tenancy at 150 percent of the then-current rent.

3. Rent. The Tenant will pay base rent of [monthly rent], due on the first day of each month. Rent is payable without setoff. A payment more than 5 days late may include a late fee of 5 percent of the overdue amount. On signing, the Tenant will pay a security deposit equal to one month's base rent. The Landlord may apply it to unpaid rent or to damage beyond ordinary wear, and will return what is left within 30 days after the Tenant leaves, or sooner if the law requires.

4. Use. The Tenant will use the Premises only for [permitted use] and will comply with applicable law and building rules. The Tenant will not create a nuisance or overload the Premises.

5. Maintenance. The Tenant will keep the interior of the Premises in good condition, ordinary wear excepted. The Landlord will maintain the structure, roof, and common areas unless the Tenant caused the damage. The Tenant will pay for utilities metered to the Premises.

6. Alterations. The Tenant may make cosmetic changes that do not affect the structure or building systems. Any other change needs the Landlord's written consent, which will not be unreasonably withheld. Changes the Tenant does not remove at the end of the term become the Landlord's, unless the Landlord asked for removal when it gave consent.

7. Assignment. The Tenant may not assign this Lease or sublet the Premises without the Landlord's written consent, which will not be unreasonably withheld. The Tenant stays responsible after an assignment or sublet unless the Landlord agrees in writing to a release.

8. Insurance. The Tenant will keep commercial general liability insurance of at least $1 million per occurrence, name the Landlord on the policy, and give a certificate on request. The Landlord will keep property insurance on the building.

9. Casualty. If a fire or other casualty makes part of the Premises unusable, rent abates in proportion to the part that cannot be used, starting on the date of the damage. The Landlord will repair the structure, roof, and common areas with reasonable promptness, except for damage the Tenant caused and damage the insurance does not cover. If the Premises are not usable again within 90 days, either Party may end this Lease by written notice.

10. Default. If the Tenant does not pay rent within 10 days after it is due, or does not cure another material breach within 30 days after written notice, the Landlord may end this Lease and recover possession. The Landlord may also seek unpaid rent and the reasonable cost of restoring the Premises, and will take reasonable steps to re-let them.

11. Surrender. When the term ends, the Tenant will leave the Premises empty and broom-clean, ordinary wear excepted, and will remove its personal property and repair damage caused by that removal. Property left behind may be removed at the Tenant's cost.

12. Governing Law. This Lease is governed by the laws of Delaware, without regard to conflict of laws principles. Any legal suit, action, or proceeding relating to this Agreement must be instituted in the state or federal courts located in Delaware, and each Party irrevocably submits to the exclusive jurisdiction of those courts.

13. General. This Lease is the entire agreement about the Premises, may be amended only in a writing signed by both Parties, and may be signed in counterparts, including electronic copies.

IN WITNESS WHEREOF, the Parties have executed this Lease as of the Effective Date.

Landlord: [Party A]

By: ________________________________

Name: [Signatory]

Title: [Title]

Tenant: [Party B]