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Commercial Lease Drafting: Key Terms, Tips, Lawyer Help

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Quick Facts — Commercial Lease Lawyers

What is Commercial Lease Drafting?

A commercial lease is a legal contract signed by a landlord and tenant for the use of commercial property, such as a retail space or office. In exchange for using the commercial property, the tenant will pay rent to the landlord.

If you need to draft a commercial lease, you should read the rest of the article.

We’ll explore the key terms you should include in a commercial lease, how to draft it, and why you should hire a qualified lawyer to draft it for you.

What Key Terms Should You Include in a Commercial Lease?

The most essential terms that appear in a commercial lease include the following:

  • Lease term. This is how long occupancy will last, which can be many years. There might be options for renewal mentioned.
  • Uses. The agreement should clearly explain how the commercial property is allowed to be used and any prohibited uses.
  • Rental payments. This outlines the base rent and any extra payments, such as deposits or annual escalations.
  • Operating costs and utilities. To prevent ambiguity, the agreement should state which party is responsible for operating costs such as maintenance and insurance.
  • Property details. The commercial lease property requires detailed descriptions, which should include its special features and square footage.
  • Subletting. This clause should clarify if the tenant is allowed to transfer the lease or sublet the commercial premises.
  • Dispute resolution. The agreement requires a dispute-resolution method to resolve conflict, such as mediation and arbitration.

What are Tips for Commercial Lease Drafting?

When drafting a commercial lease, there are some important things to include.

Detail Rent Escalation

You want to be clear about how and when rental payments may increase. This prevents nasty surprises in the future that can create tensions in the landlord-tenant relationship.

Break Down the Costs

Don’t assume that the other party understands what costs will be their responsibility. Mention all additional costs, such as parking and other operating costs.

Mention the Security Deposit

The agreement should explain the specific amount of the deposit, how it will be held, and how it can be returned to the tenant.

Discuss Alterations

You will want to think about how property alterations are handled and if they’re allowed. If they are, you want to specify the process for the tenant to alter the property, such as getting approval from the landlord.

Explain Termination

The termination clause in the commercial lease should state what grounds there are for ending the agreement, such as if either party violates the terms. If the commercial lease has an automatic renewal at the end of its term, make sure the agreement specifies this clearly.

Make it Compliant

When drafting your commercial lease, you should research all local, federal, and state regulations so that your agreement is aligned with all of them. You must also meet all zoning laws and safety codes.

Consider Including Custom Clauses

A commercial lease can be highly customized, so you might need to include additional clauses for your specific commercial lease agreement. Consider your requirements and how you can protect your interests when thinking about any additional clauses you might want. A lawyer can also assist you by evaluating your current and future requirements.

How Does a Lawyer Help You with Commercial Lease Drafting?

It’s recommended to work with a qualified lawyer to draft your commercial lease because they’ll provide a clear, valid lease that’s aligned with your requirements. Since commercial leases can be complex and detailed, you want to ensure that every term is accurate and protects you.

Here’s what a lawyer can do to help you through the drafting process.

  • They’ll avoid making any mistakes, such as including unfair or one-sided clauses.
  • They’ll draft clear terms that are legally valid and enforceable.
  • They’ll negotiate with the other party on your behalf if you want more favorable terms. This ensures the agreement is fair and clear.
  • They’ll reduce your liability and risks with specific clauses to protect your rights.
  • They’ll ensure the lease is compliant with all regulations and laws.
  • They’ll clarify all parties’ duties, such as regarding repairs, so that there’s no confusion.
  • They’ll customize the commercial lease so that it’s suitable for your business requirements and long term goals are aligned with it.
  • They’ll help you gather disclosure documents, such as a report on the property condition, for transparency with the tenant.
  • They’ll review your commercial lease if you’ve already drafted it.

Where to Find a Lawyer for Commercial Lease Drafting

If you want to work with a lawyer to draft your commercial lease, you can find a reputable lawyer on an online legal network, such as ContractsCounsel.

ContractsCounsel is one of the largest online legal marketplaces that gives you access to a network of vetted lawyers. The platform provides lawyers with years of experience in contract drafting and review.

If you need to hire a lawyer from the ContractsCounsel platform to draft your agreement, here are the online steps to follow:

  1. Go to the ContractsCounsel marketplace.
  2. Post your project. It’s free to do. You should try to include a few details to help you find the most suitable lawyer, such as the type of lease or property.
  3. Wait for lawyer bids. Instead of searching for the right lawyer, you’ll receive multiple bids from lawyers directly on the platform.
  4. Review the lawyers’ profiles. Go through the platform’s lawyer data, such as their location, client ratings for previous projects, expertise, and credentials.
  5. Connect with a lawyer you think is best suited to your requirements and hire them to draft your commercial lease for a flat fee.

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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