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Commercial Lease Agreement template

A commercial lease agreement sets out the terms on which a business rents office, retail, or industrial space, including rent, term, permitted use, operating costs, and maintenance responsibilities.

Replace everything in [BRACKETS], export to PDF, then send it for signature.

1. Parties

This Commercial Lease Agreement (the "Lease") is made on [DATE] between [LANDLORD NAME], of [LANDLORD ADDRESS] (the "Landlord"), and [TENANT LEGAL NAME], a [ENTITY TYPE], of [TENANT ADDRESS] (the "Tenant").

2. Premises

The Landlord leases to the Tenant the premises known as [UNIT / SUITE NUMBER] at [PROPERTY ADDRESS], comprising approximately [AREA] of [OFFICE / RETAIL / INDUSTRIAL] space (the "Premises"), together with the non-exclusive right to use common areas and [NUMBER] parking spaces.

3. Term

The Lease term is [NUMBER] years, starting on [COMMENCEMENT DATE] and ending on [EXPIRATION DATE] (the "Term"). [OPTIONAL: The Tenant has NUMBER option(s) to renew for NUMBER years each, on written notice at least NUMBER months before expiry, at a rent of RENEWAL RENT BASIS.]

4. Rent

The Tenant will pay base rent of [AMOUNT AND CURRENCY] per month, in advance on the [DAY] of each month, by [PAYMENT METHOD]. Base rent will increase by [PERCENTAGE]% [OR: in line with INDEX] on each anniversary of the commencement date. [OPTIONAL: Rent-free period: NUMBER months from commencement.] Late payments incur a fee of [LATE FEE] after [GRACE PERIOD] days.

5. Operating Expenses and Taxes

This is a [GROSS / MODIFIED GROSS / NET / TRIPLE NET] lease. The Tenant will pay [TENANT'S SHARE, e.g. PERCENTAGE% of property taxes, building insurance, and common-area maintenance costs], estimated at [AMOUNT] per month and reconciled annually against actual costs. The Tenant pays for utilities serving the Premises, including [UTILITIES].

6. Security Deposit and Guarantee

The Tenant will pay a security deposit of [AMOUNT] on signing, which the Landlord may apply to unpaid amounts or damage and will return, less proper deductions, within [NUMBER] days after the Lease ends. [OPTIONAL: GUARANTOR NAME personally guarantees the Tenant's obligations under a separate guarantee.]

7. Permitted Use

The Tenant will use the Premises only for [PERMITTED USE] and for no other purpose without the Landlord's written consent. The Tenant will comply with all laws, zoning rules, and building rules applicable to its use, and obtain any business licenses required.

8. Maintenance and Repairs

The Landlord will maintain the roof, structure, and building systems serving the Premises and the common areas, [EXCEPT: EXCEPTIONS]. The Tenant will maintain the interior of the Premises, including [TENANT ITEMS, e.g. fixtures, doors, windows, HVAC within the Premises], in good condition, and will return the Premises at the end of the Term in the same condition as at commencement, except for normal wear and tear.

9. Alterations and Signage

The Tenant may not make structural alterations without the Landlord's written consent. Non-structural alterations over [AMOUNT] also require consent, which will not be unreasonably withheld. The Tenant may install signage in accordance with building standards and law, with the Landlord's approval. At the end of the Term the Tenant will remove its signage and, if required by the Landlord, alterations, and repair any damage.

10. Insurance and Indemnity

The Tenant will maintain commercial general liability insurance of at least [AMOUNT] naming the Landlord as additional insured, and insurance on its own property and improvements. The Landlord will insure the building. Each party will indemnify the other against claims arising from its own negligence or breach of this Lease.

11. Assignment and Subletting

The Tenant may not assign this Lease or sublet any part of the Premises without the Landlord's prior written consent, which will not be unreasonably withheld. The Tenant remains liable under this Lease after any assignment unless released in writing.

12. Default and Remedies

If the Tenant fails to pay rent within [NUMBER] days after written notice, or fails to cure any other breach within [NUMBER] days after written notice, the Landlord may exercise the remedies available under applicable law, including terminating this Lease and recovering possession and damages.

13. Governing Law and General Terms

This Lease is governed by the laws of [GOVERNING LAW JURISDICTION]. It is the entire agreement between the parties on its subject and may be amended only in writing signed by both parties. Notices must be in writing and sent to the addresses above.

14. Signatures

The Parties agree that this Agreement may be signed electronically and in counterparts, and that electronic signatures have the same effect as handwritten signatures. LANDLORD: [LANDLORD NAME] Signature: ____________________ Name: [SIGNATORY NAME] Title: [SIGNATORY TITLE] Date: [DATE] TENANT: [TENANT LEGAL NAME] Signature: ____________________ Name: [SIGNATORY NAME] Title: [SIGNATORY TITLE] Date: [DATE]

When to use this template

  • When leasing office, retail, restaurant, or warehouse space to a business
  • When a business tenant renews or relocates within a building
  • For small commercial units, studios, and workshops
  • When rent escalations, operating costs, and personal guarantees need to be in writing

How to fill it in and get it signed

  1. Enter the landlord and tenant legal names, the premises address, and the leased area.
  2. Set the term, any renewal options, the base rent, escalations, and any rent-free period.
  3. Choose the lease type (gross, net, or triple net) and describe the tenant's share of costs.
  4. Fill in the deposit, permitted use, maintenance split, insurance amounts, and governing law.
  5. Upload the lease to eSignSimple and send it to the landlord and tenant signatories for e-signature.

This template is general information, not legal advice. Laws differ by country and state; have a lawyer review contracts with high stakes.

Frequently asked questions

What is the difference between a commercial and a residential lease?

Commercial leases are usually longer, more negotiable, and have fewer statutory tenant protections. Tenants often pay a share of operating costs and are responsible for more repairs.

What is a triple net (NNN) lease?

In a triple net lease, the tenant pays base rent plus its share of property taxes, building insurance, and maintenance costs.

Can a commercial lease be signed electronically?

In many jurisdictions, yes, though some require specific formalities for long leases or registration. Check local rules. eSignSimple keeps an audit trail for each signature.

Should a small business tenant sign a personal guarantee?

Landlords often ask for one from new or small businesses. It makes the owner personally liable, so tenants may want to limit it by amount or time, and seek legal advice.