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Commercial Lease Agreement Drafting: Key Terms, Drafting Tips, Lawyer Help

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Quick Facts — Commercial Lease Agreement Lawyers

What is Commercial Lease Agreement Drafting?

A commercial lease agreement is a legally-binding document signed by a landlord and tenant for a business space, such as a retail or office location. It specifies all the terms required for the rental agreement to take place, such as payments, lease duration, and more.

When drafting a commercial lease agreement, it needs to be transparent and specific to prevent confusion or time-consuming disputes.

Read the rest of this article to learn now to draft a commercial lease agreement and how a lawyer can assist you with the process to ensure clarity and legal validity before you sign it.

What Terms are in a Commercial Lease Agreement?

A commercial lease agreement typically includes information about the parties involved, their duties, and how they should handle various situations, such as if repairs are required in the commercial space. Here’s a rundown of some of the most common terms in a commercial lease agreement.

  • Premises. A detailed description of the commercial space, such as its address and size.
  • Duration. How long the contract will be in effect, including the start and end dates.
  • Rental payment structure. Monthly rent amounts that need to be paid and how rent will increase over time.
  • Repairs and maintenance. Who is responsible for repairs and daily maintenance on site.
  • Security. The deposit amount the tenant will pay and how it will be returned to them upon contract termination.
  • Uses. What permitted uses are allowed for the space, and any prohibited activities the landlord doesn’t authorize.
  • Termination. Details of how either party can end the agreement early, and how much notice they need to give each other.

How Do You Draft a Commercial Lease Agreement?

When writing a commercial lease agreement, it needs to be as clear as possible to prevent misunderstandings or misinterpretations. Here are some tips on how to draft an agreement that’s solid and transparent for both parties.

Include Rental Increases

To help you ward against any unexpected expenses in the future, the agreement should specify how the rental amount will increase. In some cases, this could be a fixed percentage. You want clarity on this so that there’s no confusion.

Look at Lease Duration

The contract should specify start and end dates for the lease, but you also want to include information about how you can renew the lease if required.

There should also be an opportunity for renegotiating the agreement terms, especially considering that commercial leases can last for many years and your business requirements could change by then.

Clear up Additional Costs

Besides rent, there might be other costs that will be the responsibility of the tenant. These include parking and utilities costs. The agreement should provide a detailed list of all expenses to prevent financial issues later on.

Get Clarity on the Security Deposit

The security deposit is a common issue that causes disputes between landlords and tenants. The commercial lease agreement should be clear about the security deposit amount, how it will be held, and what conditions are required for it to be returned to the tenant.

Know Your Duties

It’s crucial to know what your duties are as a tenant or landlord, such as regarding property maintenance. Typically, it’s the responsibility of the tenant to maintain the space interior and the landlord has to manage exterior and structural elements. Discussing all duties with the other party is key before commercial lease agreement drafting takes place.

Consider Default and Remedies

It’s a smart move to include a section in the agreement to explain what constitutes a default, such as if the tenant doesn’t pay their rent on time, and what remedies the landlord has to deal with it. This will ensure both parties know what’s expected of them.

Add a Dispute-Resolution Clause

If there are disagreements between the landlord and tenant, they should be able to refer back to the agreement for clarity on what steps they should take to resolve it. The contract must include a dispute-resolution method they will use to settle disputes quickly, such as mediation or arbitration.

Do You Need a Lawyer to Draft a Commercial Lease Agreement?

It’s essential to hire a lawyer to draft your commercial lease agreement because this is a significant commitment. A lawyer can assist you in various ways, such as by:

  • Avoiding red flags, such as vague terms that parties can misinterpret.
  • Aligning the contract to all required local laws, safety regulations, and zoning regulations.
  • Customizing the lease agreement to suit your specific business goals and requirements.
  • Providing transparency, such as regarding payment structures and additional fees, so that there are no nasty surprises later.
  • Considering your future business needs, such as if you’d like to make alterations to the space, so that the contract can benefit you moving forward.
  • Resolving any disputes that arise with the other party to ensure a fair settlement.
  • Protecting your interests by including an insurance clause that outlines both parties' duties. This includes indemnification to protect parties against certain claims and damages.
  • Negotiating with the other party to agree on fair, balanced terms.

Where to Get Commercial Lease Agreement Drafting

If you want to hire a lawyer to draft a legal, clear commercial lease agreement, you might wonder where to find a reputable one with experience in drafting legal contracts. Online platforms make the process easier.

On ContractsCounsel, one of the largest online legal marketplaces where clients can connect with vetted lawyers, you can post a request for a qualified, experienced lawyer to draft your commercial lease agreement. This gives you peace of mind that your lease agreement is legal, transparent, and reasonable.

Here is how to request a contract drafting:

1. Go to the ContractsCounsel marketplace, where you can post your project (or request) for free.

2. You’ll receive multiple bids from lawyers directly on the platform who can assist you.

3. Once you receive the lawyer bids, review the lawyers' profiles based on data provided by the platform. This includes the lawyers’ location, client ratings, years of experience, and field of expertise.

4. Connect with a lawyer you think is best suited to your requirements and hire them.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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