Commercial Lease Agreement Examples

Understanding Commercial Lease Agreements

A commercial lease agreement is a legally binding contract between a landlord and a business tenant, outlining the terms for renting commercial property. These agreements are essential for businesses looking to secure a physical location for their operations. Below are three practical examples that illustrate different types of commercial lease agreements.

Example 1: Retail Space Lease Agreement

This lease agreement is designed for a retail business looking to operate in a shopping center. Retail properties often have specific requirements regarding signage, hours of operation, and customer access.

In this example, the tenant, a clothing store, is seeking a 5-year lease for a 1,500 square foot space in a bustling mall.

Lease Agreement Details:

• Parties Involved: Retail Store Inc. (Tenant) and Mall Properties LLC (Landlord)
• Property Address: 123 Fashion Ave, Shopping City, State
• Lease Term: 5 years, commencing on January 1, 2024
• Monthly Rent: $3,000
• Security Deposit: $6,000
• Use of Premises: Retail clothing sales
• Additional Provisions: The tenant is responsible for utilities and must maintain the premises in good condition. The landlord allows signage visible from the mall entrance.

Notes: This type of lease may include clauses regarding percentage rent, where the landlord receives a percentage of the tenant’s sales over a certain threshold.

Example 2: Office Space Lease Agreement

This example involves a lease for office space tailored for a technology startup. Office leases typically focus on aspects like maintenance responsibilities and modification rights.

In this scenario, the tenant, Tech Innovations LLC, needs a professional workspace for its team of 10 employees.

Lease Agreement Details:

• Parties Involved: Tech Innovations LLC (Tenant) and Corporate Real Estate Group (Landlord)
• Property Address: 456 Tech Park Dr, Innovation City, State
• Lease Term: 3 years, starting April 1, 2024
• Monthly Rent: $4,500
• Security Deposit: $9,000
• Use of Premises: Office space for technology development
• Additional Provisions: The landlord is responsible for major repairs, while the tenant can make minor modifications with prior consent. Utilities are included in the rent.

Notes: This lease may also incorporate clauses for subleasing or options for renewal, allowing the tenant flexibility for future growth.

Example 3: Industrial Space Lease Agreement

This lease agreement is for an industrial facility intended for manufacturing operations. Industrial leases often stipulate specific usage rights and responsibilities for maintenance and compliance with safety regulations.

In this case, the tenant, Manufacturing Solutions Inc., is leasing a warehouse for its production line.

Lease Agreement Details:

• Parties Involved: Manufacturing Solutions Inc. (Tenant) and Industrial Real Estate Holdings (Landlord)
• Property Address: 789 Factory Rd, Industrial Town, State
• Lease Term: 7 years, effective June 1, 2024
• Monthly Rent: $6,000
• Security Deposit: $12,000
• Use of Premises: Manufacturing and distribution of machinery parts
• Additional Provisions: The tenant agrees to maintain the property in compliance with all local safety regulations. The landlord is responsible for structural repairs, while the tenant covers operational maintenance costs.

Notes: Industrial leases may include specific clauses regarding equipment installation and hazardous materials handling, which are crucial for compliance and safety.

These examples of commercial lease agreement examples provide a framework for businesses to understand their leasing options and obligations. Each type of lease varies significantly depending on the nature of the business and the property involved.