Commercial Lease Amendment

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A commercial lease amendment is a legal document that modifies an existing lease between a landlord and a commercial tenant to set out new terms and conditions. A lawyer for commercial lease amendments helps you form changes in your existing legal contracts, so it is critical to understand what you agree to and to make informed adjustments. Commercial leases can be altered several times, but it is best to be thorough and as detailed as possible to reduce the need for immediate revisions.

What is a Commercial Lease?

A lease or contract on the rental and use of a building in the context of commerce is a commercial lease. Imagine you wish to rent a building to utilize for your company. What you may do in the space, what is expected of you, the amount of rent owed, and other details are outlined in this lease. This will also assist you in understanding your lease, your activities, and your rental-related issues.

Why Hire a Lawyer for Commercial Lease Amendment

The leases that will be utilized to link a tenant to a building are created with the assistance of commercial lease attorneys. They assist in creating the leases, ensuring their legality, and handling situations in which they are breached, and legal action needs to be taken.

This kind of lawyer ensures that the contracts being entered into are legitimate, that a property owner can demand that you do some things and prohibit you from doing others, and that the many elements that go into leases are explained.

Commercial Lease Amendment vs. Addendum

Adjusting an already-in-affect lease agreement is an amendment to a commercial lease. The final result is that some of the original lease's content has been altered to represent the views of the landlord and the tenant, whether it involves amending a single clause or section or undergoing a more thorough revision.

When referring to an amendment to a business lease agreement, the word "addendum" is occasionally used improperly. When it is first signed, an initial commercial lease agreement is issued with a lease addendum. It is a separate, stand-alone document. A lease addendum can be used to add new clauses or clarify information already included in the original lease, of which it is a part.

  • Understand the Purpose of Amendments to Your Current Lease

    Understanding the terms of your current lease before making changes is crucial, whether you are the landlord leasing space to a business or the tenant leasing that space. If you merely modify one lease clause without carefully reading the lease agreement, you may unintentionally change anything that clashes with another clause. If you need to use the legal system to enforce the lease later, this might put you in danger.

  • Negotiating Amendments

    You should agree on the adjustments with the opposing party before writing your business lease revision. The lease amendment will then be a written record of your past discussions, expressing your wishes. By doing this, you might prevent having to create many drafts of your business lease modification.

Four Categories of Commercial Lease Amendment Modifications

Almost any adjustments the landlord and tenant agree upon can be made through a business lease amendment. In essence, your lease modification can include anything as long as it is permitted by law. However, the majority of business lease modifications fall into one of the following four categories:

  • Extend the Lease's Term

    The most typical application of commercial lease modifications is to lengthen the lease's duration. A commercial lease amendment might be drafted to extend the lease for a further three years, for instance, if a lease enabled a firm to utilize office space for a three-year term and the business wanted to continue utilizing the space after the conclusion of the lease period.

  • Increase or Decrease the Leased Space's Size

    The amount of space a renter needs might fluctuate as their company prospers or fails. A lease modification can be negotiated and signed to enable a firm to either scale back operations or costs by renting less space or to expand to meet rising demand.

  • Make alterations or improvements to the area the tenant is renting and using

    Commercial leases frequently contain clauses addressing adjustments the tenant requests and the landlord agrees to make before the tenant takes possession of the premises when they are originally signed. Tenants of commercial real estate frequently desire to make alterations or enhancements to the facility over time. This might be as straightforward as updating the paint and décor.

    Additionally, it could be essential to adapt the area to make it accessible to consumers or employees with disabilities to comply with the Americans with Disabilities Act (ADA).

  • Permit the Tenant to Use the Neighboring Space

    If you are a tenant renting space and you need more room for your operations or for another reason, it could be advantageous to lease the space next to you if the current tenant vacates.

    When that space becomes available, you can extend the terms of your commercial lease such that your new lease would cover both your current space and the next area. However, the lease might be changed to allow you the right of first refusal to lease that space.

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Other Clauses and Conditions for Commercial Lease Amendment

Almost any other clause in a business leasing agreement may be changed with an amendment. This could comprise:

  • The address where rent payments should be sent or where correspondence with the landlord or renter should be made;
  • The lease assignment clauses, clauses regarding subleasing space to permit the use of commercial sublease agreements specifically;
  • Insurance requirements and obligations for either the tenant or the landlord, penalties for not paying rent on time and as agreed;
  • Including the amount of any late fee and what constitutes a late fee;
  • Alterations to the utilities the landlord provide and those the renter is responsible for paying;
  • Alterations to how the shared spaces utilized by all of the landlord's tenants are described, used, and maintained;
  • Modifications to disclosures necessary to comply with applicable state legislation; and
  • If both the commercial landlord and the business tenant renting the space agree, other clauses of the current commercial lease agreement may be modified.

Essential Elements of a Commercial Lease Amendment

Once you have determined the clauses in your current commercial lease agreement you wish to alter, eliminate, or add, it is time to make the necessary adjustments by creating your lease amendment. The following clauses ought to be included in a business lease amendment:

  • Names of the landlord and Tenant.
  • A statement that a business lease agreement already in place would want to be amended by both parties (both the landlord and the tenant)
  • The date the initial commercial lease was signed, as well as the date(s) of any earlier modifications to the initial lease
  • The time that the commercial lease was modified
  • Both the landlord's and tenant's signatures and those of their authorized representatives

There should be a separate section for each modification you wish to make to the current lease. Your current business lease modification should detail those changes in straightforward, intelligible terms. The revision should include the paragraph number(s) and title(s) for reference if a clause is being removed or a new section or paragraph is being introduced. The modification should contain the whole text of the new paragraph if a section or paragraph is being amended.

Key Terms

  • Addendum: An addendum is used to clarify and add things that were not initially part of the original contract or agreement. Think of addendums as additions to the original agreement
  • Amendment: An amendment is a change or addition to the terms of a contract or document. An amendment is often an addition or correction that leaves the original document substantially intact.
  • Lease: A lease is a contractual arrangement calling for the user to pay the owner for the use of an asset. Property, buildings, and vehicles are common assets that are leased. Industrial or business equipment is also leased. A lease agreement is a contract between the lessor and the lessee.
  • Tenant: A person who pays money (rent) to the owner of a room, flat, building, or piece of land so that they can live in it or use it.


You may better understand your leases, the process of how leases are created, and the process of creating these leases and how they are upheld with the assistance of your commercial lease attorney.

Lawyer Commercial lease amendment is crucial; they must be established to safeguard both the property owner and the leaseholder. A ContractsCounsel can make it simple for you to comprehend the complete spectrum of business leases, enabling you to attain the ideal commercial lease.

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