Commercial Lease Agreement

Establishing a Commercial Lease Agreement

A commercial lease agreement sets down important conditions, regulations, and obligations that the proprietor and the tenant have to abide by. This agreement also establishes how much the tenant’s rent is going to be. Rent is the amount that the tenant should settle to his or her landlord in consideration or as exchange for the private use of the proprietor’s facility or property.

How different are these agreements from the others?

While you can find a standard sales agreement form, there is no standard form for commercial lease agreements. The outcome of the proprietor and potential tenants’ negotiations are exclusive and are contained in the final agreement. It becomes legally binding once they have both affixed their signatures in the document.

Meanwhile, the basic elements of every commercial lease agreement are the following:

  • Names of the landlord and tenant and other parties involved and their signatures
  • Identification of the property address
  • The dates of when the contract starts and terminates
  • Determination of the amount of rent
  • Complete details of rent deposits

Additional elements of these agreements

Another element in the agreement between the proprietor and the tenant is the interval of payment. The most common is monthly payment. Meanwhile, the usual amount of rent is determined according to rental area calculations—for example, the sum of each square feet of the area.

What are the implications of affixing your signature to these agreements?

The agreement can be binding for whatever length of time agreed upon by both parties. However, there are times when the proprietor already pre-sets the lease term before coming up with an agreement with the tenant.

The differences of short-term and long-term leases

Basically, short-term lease usually spans less than a year or up to one year only. However, there are also short-term leases that go up to 3 years, depending upon specific interpretation. A set monthly rate or gross lease is usually required of a short-term lease tenant.

On the other hand, long-term lease tenants are required to pay periodic increases in their monthly rent. The increases are recognized as compensation for the owner due to the rising amounts of insurance, property taxes, common maintenance supplies, and other utilities. Provisions in the commercial lease agreement regarding long-term leases are specified if they are double net lease, triple net lease, or quadruple net lease.

Just the property owner and tenant or a common witness works out most commercial lease agreements. However, if it involves large real estate property, for example, the guidance of a Los Angeles corporate lawyer may be needed for certain clarifications. The lawyer can also stand as witness as both parties confirm and acknowledge all the stipulations of the agreement.

Establishing a Commercial Lease AgreementExpert help in drafting and executing commercial lease agreements

If you need help in drafting your commercial lease agreement, it is advised that you consult with an expert Los Angeles business attorney from the Business Corporate Attorney. Our Los Angeles-based multispecialty law firm has some of the brightest and professional business lawyers who can ensure the success of your business.

Just give us a call today so you can take advantage of our legal consultation by contacting us at our toll-free number (888) 833-2528. You may also send us an email at

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