Free Commercial Lease Agreement Template

A commercial lease agreement is a contract that allows a business to rent non-residential property, such as an office, storefront, or warehouse, in exchange for rent and other agreed costs. It defines how the tenant can use the space, how long the lease lasts, and how expenses are divided.

Because commercial leasing rules vary by state, using a state-specific agreement helps both sides stay aligned with local requirements.

When Do You Need One?

You need a commercial lease whenever a business rents space that is not used as a residence.

• Leasing a storefront to a retailer.
• Renting an office to a professional services firm.
• Providing warehouse space to a distributor or manufacturer.
• Leasing a commercial kitchen to a catering or food business.

Commercial leases often differ based on how rent and operating expenses are handled. Common types include:

Gross (Full-Service) Lease

The rent includes most or all operating costs, such as maintenance, taxes, and insurance. This gives tenants more predictable monthly payments.

Net Lease

The tenant pays base rent plus some or all operating expenses. This often includes property taxes, insurance, and common area maintenance.

Modified Gross Lease

The landlord and tenant share operating expenses in a negotiated way. For example, the tenant may pay rent and common area maintenance (CAM), while the landlord covers taxes and insurance.

Percentage Lease

The tenant pays base rent plus a percentage of gross sales. This structure is common in retail settings like malls.

A clear lease outlines expectations for both landlord and tenant. These are the core sections most agreements include:

1. Parties: Full legal names and contact details.
2. Property: Address, unit number, and any included areas.
3. Lease Term: Start and end dates, plus renewal options.
4. Rent: Amount, due dates, payment method, and adjustments.
5. Expense Structure: How taxes, insurance, and maintenance are handled.
6. Security Deposit: Amount and refund conditions.
7. Permitted Use: What the tenant may do in the space.
8. Maintenance: Who repairs what, and when.
9. Improvements: Rules for altering the space.
10. Insurance: Required coverage, including liability insurance.
11. Default and Termination: What happens if terms are not met.
12. Governing Law: Which state’s law applies.