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

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers

A Massachusetts commercial lease is a rental agreement between the landlord of a commercial property and a business tenant. The rental agreement is used for retail, industrial, or office use with certain terms and conditions applicable to Massachusetts outlined in the agreement. The commercial property is leased to the tenant under the terms and conditions outlined in the agreement.

If the terms of the agreement are not checked and verified properly, it may result in legal complications and cause trouble for you in the future. Hence, it is essential to check for various parameters before entering into a contract of any form with someone.

Things to Consider Before Signing the Massachusetts Commercial Lease

  • Area of the Property - The total square area of the property determines the rental cost of the property.
  • Exclusions - If there is any area, such as a room, that is not mentioned within the contract, it must be clearly stated.
  • Repair Costs - In case there are major complications that turn up, it must be clearly stated who takes care of them.
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Key Terms Related to Massachusetts Commercial Lease

  • Tenant - A person who rents the property for a particular duration.
  • Contract Duration - The time period for which the contract is applicable.

Conclusion

A commercial lease is a legal document signed between two parties when they agree to every term and condition stated within it. Hiring lawyers from ContractsCounsel can help you get rid of your tension. Compare multiple free proposals from vetted lawyers and save 60% less than traditional law firms - start your job proposal here.

Frequently Asked Questions

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Christopher R. on ContractsCounsel
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Christopher R.

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Free Consultation
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12 Yrs Experience
Licensed in MA NH
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Corporate and transactional attorney in sixth year of practice. Focus areas include general corporate counsel, labor and employment law, business partnership matters, securities matters related to privately-held companies, and regulatory compliance in securities and finance matters.

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Briana C. on ContractsCounsel
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Briana C.

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Free Consultation
Boston, MA
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Legal services cost too much, and are often of low quality. I have devoted my law practice to providing the best work at the most affordable price—in everything from defending small businesses against patent trolls to advising multinational corporations on regulatory compliance to steering couples through a divorce.

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"Briana was responsive and quick to put the draft together. It has been a pleasure working with her!"

Jo Ann J. on ContractsCounsel
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Jo Ann has been practicing for over 20 years, working primarily with high growth companies from inception through exit and all points in between. She is skilled in Mergers & Acquisitions, Contractual Agreements (including founders agreements, voting agreements, licensing agreements, terms of service, privacy policies, stockholder agreements, operating agreements, equity incentive plans, employment agreements, vendor agreements and other commercial agreements), Corporate Governance and Due Diligence.

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Richard G.

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Attorney Joshua K. S. Cali is a respected business, estate planning, and real estate attorney based in Ashland serving Middlesex County and other nearby areas. Joshua graduated summa cum laude from Bentley University in Waltham, MA, and from UCLA School of Law in Los Angeles. Before starting his own firm, Joshua practiced estate planning for high net worth clients at a boutique law firm in San Diego, CA.

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Stan provides legal services to small to medium-sized clients in the New England region, and throughout the U.S. and abroad. His clients are involved in a variety of business sectors, including software development, e-commerce, investment management and advising, health care, manufacturing, biotechnology, telecommunications, retailing, and consulting and other services. Stan focuses on the unique needs of each of his clients, and seeks to establish long term relationships with them by providing timely, highly professional services and practical business judgment. Each client's objectives, business and management styles are carefully considered to help him provide more focused and relevant services. Stan also acts as an outsourced general counsel for some of his clients for the general management of their legal function, including the establishment of budgets, creation of internal compliance procedures, and the oversight of litigation or other outside legal services.

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Landlord

Commercial Lease

Ohio

Asked on Apr 12, 2023

Can the rent be increased during the lease term?

I am an entrepreneur who is looking to rent a commercial space for my business. I recently found a space that fits my needs and the landlord is offering a lease agreement. I am wondering if the rent can be increased during the lease term, as this could have a significant impact on my business. I understand that the lease agreement may contain provisions that allow for rent increases, but I would like to confirm this before signing the agreement.

Jeffrey K.

Answered Apr 14, 2023

The lease agreement should specifically provide when and in what amount any rent increases would occur. Usually on a lease with a five year term, rent would increase yearly. If you have a build out credit, you may have free rent for a term if you pay for the build out. If it is a net lease, meaning you pay rent and, either taxes, insurance and/or common area maintenance, you would have a base rent plus the other fees that could increase during the initial lease term usually yearly, but it could be more than one time a year if the costs of these items increase. The rent would also likely increase yearly. If the lease is a gross lease, you will have one monthly rental payment that would increase (most likely) yearly.

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Real Estate

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Asked on May 12, 2021

Should I use a lawyer for commercial lease?

It is a very long lease and I'm not sure what it says. I also don't want to pay a fortune to have it reviewed to eat into my budget.

George O.

Answered May 12, 2021

Yes! Before signing any contract/agreement/lease, or anything that appears to be a binding agreement, it is worth the money to have a lawyer review it. I charge a flat fee to review any and all agreements, so my clients know up front what they are paying, and they consider it a cost of doing business. The alternative, i.e. not having a lawyer review your agreements prior to signing, can be, and usually is, exponentially more expensive should a conflict arise (and they often do).

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Commercial Real Estate

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Asked on Apr 20, 2023

Can the tenant make changes to the property's signage?

I am looking to rent a commercial property for my business and have recently come across a potential property. The lease agreement states that the tenant is not allowed to make any changes to the property's signage. I am interested in understanding if there are any exceptions to this rule and if the tenant can make changes to the signage.

Michael C.

Answered Jun 1, 2023

Standard commercial lease template includes language about the nature and extent of modifications tenants can make to a property. In this instance, there's no legal or regulatory exception that is going to protect you from a restriction in the lease. Your best bet is to negotiate directly with the landlord for a modification to the lease terms.

Read 1 attorney answer>

Real Estate

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Asked on Apr 17, 2023

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.

Answered Apr 28, 2023

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.

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Commercial Real Estate

Commercial Lease

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Asked on Apr 17, 2023

Can the tenant assign the lease to another business?

I am a business owner who recently signed a commercial lease for a retail space. I was recently approached by another business who is interested in taking over my lease, and I am wondering if I am able to assign the lease to them. I am looking to understand the legal implications of assigning the lease, as well as any other requirements or restrictions I should be aware of.

Joseph M.

Answered May 12, 2023

In Massachusetts, a commercial tenant can assign or sublet the unit to a third party - UNLESS there is a specific prohibition in the current lease. However, even if there is such a prohibition, it might still be worth speaking to the landlord about since it might be mutually beneficial.

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