Maryland Commercial Lease: Types, Key Terms To Know, Costs

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers (Maryland)

A Maryland commercial lease agreement is a contract between a landlord and a business tenant regarding the renting of a commercial property. A commercial agreement is generally used for leasing retail, industrial, restaurant, or office space in Maryland detailing the terms and conditions of the lease, regarding the lease term, security deposit, rent amount, subleasing, and exclusivity. The agreement becomes a legally binding contract that is enforceable in a court of law once signed by both parties.

There are three major types of commercial lease agreements:

  1. Gross Lease – The lessee pays a single fixed payment to the landlord, including the utility costs associated with the property.
  2. Modified Gross Lease – The lessee pays for the basic rent at the beginning of the lease as well as a proportionate share of costs like property taxes, insurance premiums, and maintenance expenses during the lease tenure.
  3. Triple Net Lease (NNN) – The lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance in addition to the cost of rent and utilities.
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What is Included in a Maryland Commercial Lease?

Signing a commercial lease in Maryland is not only compulsory but also helps in protecting yourself. A Maryland commercial lease states,

  • The rights of ownership of the property. Thus, no one else can claim the property.
  • The parts of the property like parking space that come under the commercial property.
  • The duration during which the contract must be abided by is mentioned.
  • The laws pertaining to operating a food business and the food items that are banned or illegal. The agreement must also disclose if the property was used for any illegal business earlier.

Key Terms Related to Maryland Commercial Lease

  • Property Owner- The person who is legally the bearer of the property.
  • Contract Duration - The time period for which the contract is applicable.

If you are looking for expert guidance or a lawyer for your Maryland commercial lease, or any other legal proceedings, check out the services offered by ContractsCounsel. Compare multiple free proposals from vetted lawyers and save 60% less than traditional law firms - start your job proposal here.

Frequently Asked Questions

How do I hire a lawyer to draft a commercial lease in Maryland?
How much does it cost to hire a lawyer to review a commercial lease in Maryland?

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Susan T.

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General practitioner since 2005, general practice; civil disputes, torts.... logo Call us: (410) 878-7006 Menu Services Maryland Mobile Last Will & Testament Services All Maryland Legal Services Susan C. Trimble Attorney at Law WHAT WE ARE ABOUT Susan C. Trimble, is an established attorney in the Maryland area. Her work is infused with commitment to her community and family. is tailored to your wants and needs. Here you will find an approachable, personable and conscientious advocate. EDUCATION: Juris Doctorate (JD). University of Baltimore School of Law, Baltimore, Maryland, USA. 2006. Bachelor of Science (BS), English Literature. Towson University, 1989. Associate in Claims, (AIC) certification. Fraud Claims Law Associate, (FCLS) certification.

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Commercial Real Estate

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Asked on Apr 25, 2023

What is a commercial lease agreement and how does it work?

I am a business owner interested in renting a commercial space for my business. I am trying to understand the details of a commercial lease agreement and how it works so I can make an informed decision about whether or not to sign a lease. I am looking for information about the terms, conditions, and other relevant details that could affect my business.

MICHAEL B.

Answered Jun 2, 2023

A commercial lease agreement sets out the parameters of the space to be leased, including a description of the premises, an allocation of responsibilities for janitorial services, electrical services, tenant improvements, insurance requirements, payment of rent and payment of common area expenses, parking for employees and visitors, telephone and telecommunication services and many other issues.

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Litigation

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Asked on Apr 14, 2023

What's the survival clause in a commercial lease?

I am looking to enter into a commercial lease for my new business. I am unfamiliar with the terms of a commercial lease, and am particularly interested in understanding the survival clause. This clause is important to me because I want to make sure I am fully aware of my rights and responsibilities as a tenant. I need to know what is expected of me should the lease be terminated prematurely.

Curt L.

Answered Apr 28, 2023

A survival clause is fairly standard in a lease. It extends the effectiveness of certain provisions, such as party representations, warranties, promises, and covenants beyond the expiration or termination of the lease, but not beyond the legally prescribed statute of limitations. For example, If you make a fraudulent representation in a 1-year lease, the other party to the lease who is damaged by your fraud could still sue you for that fraud even after the end of the 1-year lease.

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Commercial Real Estate

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Asked on Apr 12, 2023

Can the tenant make alterations to the property?

I am a tenant of a commercial property and I am interested in making some alterations to the property. I understand that I will need the landlord's permission to make these changes, but I am unsure of what the landlord's policy is regarding tenant alterations and what the legal implications of making such changes might be. I am looking for clarification on the tenant's rights and obligations when making alterations to a commercial lease agreement.

O.T. W.

Answered Apr 14, 2023

Hello! There should be an alterations clause in your lease that speaks to what is or isn't allowed in your space. Your safest bet is to have your landlord review and sign a letter of consent for more substantial improvements (beyond paint, mounting items, etc.)

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Asked on Apr 17, 2023

What's the parking situation in a commercial lease?

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Diane D.

Answered Apr 18, 2023

The only way to answer this question is to have an attorney read the lease.

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Asked on Jan 14, 2025

Can a landlord terminate a commercial lease early?

I have been running a small retail business for the past two years in a commercial space rented under a 5-year lease agreement. However, due to unforeseen financial difficulties, my business is struggling to stay afloat and I may need to close down. I have heard rumors that my landlord has the right to terminate the lease early, and I want to know if this is true and what my options are in such a situation.

Michelle M.

Answered Jan 26, 2025

The answer to your question is contained in the lease. All rights and obligations of parties to a commercial lease are controlled by and provided for within the lease. If your lease provides for early termination by the landlord, then the landlord can exercise that option. If it doesn't provide for early termination and you are in compliance with the lease, then they can't terminate early (at least not without your consent). You should retain a local attorney who can review the lease and provide advice concerning your specific situation. Best of luck!

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