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Commercial Lease Agreement

About this document

A commercial lease agreement is a legal document between a landlord who agrees to lease space to a tenant for a business-related use. The tenant pays rent to use the space for retail, office, or industrial purposes, and — depending on the type of lease — may also cover property taxes, insurance, and maintenance.

This template builds a complete agreement from your answers: it sets the rent and payment terms, the lease term and any renewal options, how operating expenses are split, and the standard clauses for use, maintenance, default, and dispute resolution.

When to use it

Use this when…

  • Renting out retail, office, industrial, or mixed-use commercial space.
  • Setting a Triple-Net (NNN), Modified Gross, or Gross lease where expenses are allocated between the parties.
  • Structuring rent escalations, renewal periods, an option to purchase, or a right of first refusal.
  • Requiring a personal or third-party guarantee of the tenant’s obligations.

Step by step

How to write a commercial lease agreement

  1. Choose the lease type

    Decide whether the tenant pays all expenses (NNN), some (Modified Gross), or none (Gross). This drives the expense clauses.

  2. Identify the parties and premises

    Enter the landlord, every tenant, and the address and size of the leased space.

  3. Set the term and rent

    Define the commencement and end dates, base rent, payment schedule, any percentage rent, and scheduled increases.

  4. Allocate expenses and responsibilities

    Assign CAM, taxes, insurance, HVAC, utilities, and upkeep between landlord and tenant.

  5. Add options and protections

    Include renewal, security deposit, parking, sublet rules, guarantees, and dispute resolution as needed.

  6. Review, sign, and (optionally) notarize

    Have all tenants and any guarantors sign; add notary acknowledgments if required in your state.

Good to know

Frequently asked questions

What is the difference between NNN, Gross, and Modified Gross?

In a Triple-Net (NNN) lease the tenant pays base rent plus its share of taxes, insurance, and maintenance. In a Gross lease the landlord covers those expenses. A Modified Gross lease splits them between the parties.

How long are commercial leases?

Commercial leases are commonly 3–5 years, often with one or more renewal options, providing stability for both parties.

Can the rent increase during the lease?

Yes. You can schedule one or more rent increases with effective dates and new amounts, and optionally add a percentage of the tenant’s gross sales.

Does this agreement need to be notarized?

Notarization is optional and depends on your state and lender requirements. The template can add notary acknowledgment blocks if you choose.

Ready to create your commercial lease agreement?

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