Commercial Property Leases

A commercial property lease is a legally binding contract that outlines the terms under which a tenant (lessee) rents space from a property owner or landlord (lessor). The lease agreement guarantees the tenant the right to use the property for business purposes while ensuring the landlord receives regular payments for a specified period.

Unlike residential leases, commercial leases often involve more complex terms, including rent escalations, maintenance responsibilities, and tenant improvement allowances. Additionally, lease structures can vary, with common types including gross leases (where the landlord covers most property expenses) and net leases (where the tenant is responsible for additional costs like property taxes, insurance, and maintenance).

Because commercial leases can have long-term financial implications, businesses should carefully review terms related to renewal options, exclusivity clauses, and potential personal guarantees before signing. Understanding these terms helps ensure the lease aligns with the company’s operational needs and financial strategy.