Alabama Commercial Lease: Types, Key Terms To Know, Costs
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An Alabama lease agreement is a lawful contract between an individual or business that holds the commercial property or the landlord and the individual or organization who will rent the commercial property or the tenant. In addition, most commercial lease contracts in Alabama are known as a sublease, indicating the lessor is leasing out a part of their real estate property.
Furthermore, when the lessor consents to rent a portion of their property that the tenant can use for commercial purposes, this contract becomes a legally binding agreement in Alabama. However, before entering a commercial lease, the lessor generally demands a personal guarantee if a company owns few assets or was created recently. This individual guarantee puts the liability and obligation on the business owner for the lease contract's execution.
How to draft Alabama Commercial Lease?
As you write a commercial lease contract for use in Alabama, it is necessary to comprehend that the procedure will usually undergo various modifications and drafts. In addition, you must begin the procedure by agreeing orally on several fundamental issues:
- Base rent
- Lease term
- Renewal options
Furthermore, your lease contract should comprise a title with the official addresses and names of the lessee and lessor. Subsequently, you can incorporate any of the following areas into your Alabama commercial lease term:
- Explanation of premises being rented
- Agreement provisions
- How the premises being rented will be used
- Renewal choices
- Specified security deposit
- Expenses and rent sum (include whether the agreement is modified gross, gross, or triple net)
- Default on rent (the fine for a late fee)
- Modifications the tenant is entitled to make
- Any extra miscellaneous provisions of the agreement
- Contact data for the landlord and tenant for statutory purposes
- Signature from each person (for corporate lease contracts, the signatures should be certified by a notary public)
Another alternative for your Alabama commercial lease contract will include the following:
- Agent's name (if applicable)
- Lessor's name
- Tenant's name
- Lease terms
- Description and use of the land being leased
- Base and extra rent sum
- Late payments
- Required security deposit amount
- How lessee will take control
- Provisions of the premises being leased
- Waiver from the agent (if relevant)
- Nuisance
- Repairs managed by the lessor
- Outside spaces and roof condition
- Showing and inspection provisions
- Maintenance, repairs, compliance, and utilities by the tenant
- Improvements, alterations, signs
- Whether the leased property holds any liens
- Any faults of the premises being leased
- Indemnity and general liability insurance
- Default circumstances
- Default attorney costs and fees, waiver of exemptions, and rent acceleration periods.
- Re-letting and vacation of the property
- Additions and modifications of the property by the landlord
- Re-entry and No bar
- Fire and other damages
- Lease term fee provision, requirements, undertaking, and transfer
- Contract for agent's commission (if relevant)
- Demands and notices
- Subrogation rights waiver
- Hold harmless agreement
- Holdover
- Condemnation and prominent domain
- Provisions for cleaning the leased property when the agreement is terminated
- Attornment and subordination
- Insurance and taxes
- Addendum clause
- Requirements for the use of dangerous materials on the leased buildings
- Terms of the lease
- Legally binding effect of the contract
- Meaning of the term "landlord" or "lessor".
- Statutes and rules
- Commission to sign the legal contract
- The waiver from the Birmingham Association of Realtors, the release of lawsuits and disclaimer, and signatures of the landlord, tenant, and agent (if applicable)
And upon signing the contract, people involved in contract execution should obtain an original copy. Likewise, when the contract is implemented, the tenant should pay the demanded security deposit and obtain access to the commercial property based on the lease provisions. However, if you wish to use a simplified arrangement of the Alabama commercial lease agreement, it should comprise the following:
- Terms of the lease
- How will the tenant use the property
- Rental terms
- Terms for sublease and assignment
- Repair requirements
- Utilities
- Insurance
- Modifications and alterations
- Required property taxes
- Addition of signs
- Rules of the facility or property
- Condemnation
- Entry allowance
- Parking
- Quiet Possession
- Subordination
- Security deposit required
- Notice
If you wish to lease a commercial property in Alabama, our expert attorneys at ContractsCounsel are there to help you. So get in touch with our team now and discuss your lease terms with our professional lawyers.
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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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Senior Corporate Attorney with extensive experience across diverse law firms, specializing in M&A transactions, commercial contracts, and corporate governance. Proven ability in risk mitigation and forming strategic partnerships, leveraging strong analytical skills to achieve successful outcomes. Recognized for high productivity and efficient task management. Expertise in critical thinking, problem-solving, and communication that enhances navigation of complex legal issues for clients.
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Brad A.
Brad Adams is the founder of Adams Outside GC, PLLC, a legal consulting firm providing fractional General Counsel services to businesses across Florida, Alabama, and Georgia. With more than 25 years of legal experience, Brad offers practical, business-minded legal support to help companies navigate complex legal issues, minimize risk, and focus on growth. Brad’s practice spans both business law and employment law, with a focus on delivering real-world solutions tailored to each client’s needs. He regularly advises companies on legal compliance, drafts and negotiates contracts, supports clients with collections and dispute resolution, and helps businesses manage day-to-day legal and HR matters. His employment law experience includes drafting policies and agreements, conducting internal investigations, delivering compliance training, guiding employers through regulatory challenges and responding to administrative complaints. Brad has represented employers of all sizes—ranging from startups to Fortune 500 companies—in a wide variety of industries, including construction, manufacturing, retail, healthcare, hospitality, solar energy, and technology. In addition to this broad experience, Brad has developed significant expertise in worker classification issues, particularly in the gig economy. He has worked with businesses using independent contractor models to help them navigate the legal and operational complexities unique to non-traditional workforces. Brad’s guidance helps clients reduce misclassification risk and design more sustainable, compliant contractor arrangements that support operational flexibility. His published work on this topic has appeared in Bloomberg Law’s Daily Labor Report, and he is a valuable resource for companies working within this rapidly evolving space. Prior to founding Adams Outside GC, Brad served as General Counsel for Meraki Installers LLC, where he managed the company’s legal, compliance, and HR functions. He previously practiced at top national and regional law firms, including Littler Mendelson, P.C., where he spent over a decade focusing exclusively on employment law as both an associate and shareholder. Earlier in his career, he worked in the Atlanta office of Powell Goldstein LLP (now Bryan Cave Leighton Paisner) and the Mobile, Alabama office of McDowell Knight Roedder & Sledge, LLC. Prior to joining Meraki, Brad worked in the Pensacola, Florida office of Emmanuel, Sheppard & Condon. Brad is licensed in Florida, Alabama, and Georgia, and is a Board-Certified Specialist in Labor and Employment Law through the Florida Bar. He earned his J.D. with honors from the University of Florida Levin College of Law, where he was recognized for excellence in legal writing. He also holds a B.A. with honors and distinction from the University of the South (Sewanee). Brad is a speaker and published author on employment law topics and compliance strategy, contributing to Bloomberg Law, LexisNexis, and regional HR and legal conferences. For additional information, please visit adamsoutsidegc.com
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Real Estate
Commercial Lease
California
What's the property description in a commercial lease?
I am a small business owner who is looking to lease a property for my business. I am currently reviewing a commercial lease and am trying to understand what is included in the property description in the lease. I am hoping to gain more clarity on what the property description entails and how it affects my business.
Gagandeep K.
A property description in a commercial lease has to sufficiently identify the extent and boundaries of the property being leased. For example, it can be described by a map reference or by metes and bounds, or include a description such as "that certain building on the south-westerly corner of California and Larkin Streets." The commercial lease will include defined terms such as "Building," "Property," and "Premises". The defined terms define/describe the "Property" on which the "Building" is located which has the "Premises"/"Space" that is being leased. A sample definition of is Property Description in a Commercial Lease: ""Property" means the real property on which the Building is located together with the Building and all appurtenant fixtures and personal property of Landlord used in the operation of the Building and/or the Property, and any other improvements now existing or hereafter constructed thereon[, including the parking lot, walkways, and landscaped ground as depicted on the site plan attached hereto as Exhibit [LETTER]]."
Real Estate
Commercial Lease
Florida
What's permitted alterations in a commercial lease?
I am a small business owner looking to rent a commercial space for the first time. I am considering signing a commercial lease and want to know what kind of alterations are allowed in the agreement. I would like to avoid any potential legal issues or disputes in the future by clarifying what is permitted before signing the lease.
Moss S.
Usually permitted alterations are cosmetic, and non-structural in nature. Often times the Landlord will require the Tenant to submit plans, or in the alternative the lease will describe the fit and finish that would be allowed.
Contracts
Commercial Lease
New York
What's the entire agreement clause in a commercial lease?
I am a small business owner who recently signed a commercial lease for my business premises. I am concerned about the “entire agreement” clause in the lease, as I am not sure what it covers and what the implications are for me and my business. I am looking for clarification on the clause and any potential risks associated with it.
Matthew S.
This is a contractual provision which aims to prevent the party relying on it from being liable for any statements or representations (including pre-contractual representations) except as expressly set out in the agreement. It generally precludes the introduction of parol evidence or evidences of other agreements that are not in writing.
Real Estate
Commercial Lease
Florida
What's the parking situation in a commercial lease?
I am currently in the process of signing a commercial lease for a retail store and I need to know the parking situation that is included in the lease. I have read through the lease and I'm not sure if the parking is included or if I have to arrange it myself. I need to know if I will be able to provide adequate parking for my customers and employees.
Diane D.
The only way to answer this question is to have an attorney read the lease.
Small Business
Commercial Lease
North Carolina
What's the repair responsibility in a commercial lease?
I am a small business owner in the process of signing a commercial lease for a retail space. I am trying to understand my responsibilities as the tenant regarding repairs and maintenance of the property. I want to make sure I understand what my repair responsibility is in the lease before signing it.
N'kia N.
In a North Carolina commercial lease agreement, it is common for the landlord to be responsible for major maintenance and repairs (including structural issues) and the tenant to be responsible for minor maintenance and repairs (including general wear and tear). However, the landlord and the tenant may agree to alternative arrangements in the written lease. The best way to more fully understand your specific maintenance and repair responsibilities under a specific lease agreement is to have an attorney review the agreement and discuss it with you. Good luck!
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