New York Commercial Lease: Types, Key Terms To Know, Costs

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers (New York)

The New York commercial lease agreement is a legally binding contract between a landlord and a tenant or business entity. A commercial lease agreement allows a business to rent retail, office, or industrial spaces for business purposes.

Guarantees and Disclosures Needed for a New York Commercial Lease

  • Use of Premise

    The fundamentals of a commercial lease agreement are to mention the purpose for which the space will be used. Operating a business apart from the ones mentioned in the contract is considered a breach of contract.

  • Good Guy Guarantee (GGG)

    Good Guy Guarantee is a personal guarantee that gives assurance and protection to landlords if a tenant goes into default or is otherwise unable to continue the agreement. This is part of the rental agreement in New York city that allows a tenant to be released from a rental agreement early.

  • Lead Paint Disclosure

    Any commercial property that was built before the year 1978 may possibly have lead-based paint. The landlords must inform the tenants whether the space has lead paint. Tenants need to be aware of the hazards of lead paint before they sign the lease.

  • Food Use Rider

    If a tenant operates a business that involves food or drinks, they must abide by the food service laws in the state. The laws pertaining to the state of New York must be included with the lease. Any violation of the laws would mean a breach of contract, and it could mean the end of the lease agreement.

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How Lawyers Help in New York Commercial Lease

  • Lawyers draft and examine every document in every business leasing case in New York to ensure the text accurately describes the rights and duties of each party.
  • Lawyers negotiate "risks" like demolition clauses in a retail or office lease. This clause gives the landlord an exclusive right to end a commercial lease early during the current infrastructure boom in New York City.

Conclusion

When leasing retail, industrial, or office space, working with a knowledgeable commercial lease attorney is crucial to safeguard your long-term company interests. Our commercial property lease attorneys at ContractsCounsel offer assistance in commercial real estate and commercial office leasing agreements in New York City. 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 New York?
How much does it cost to hire a lawyer to draft a commercial lease in New York?
How much does it cost to hire a lawyer to review a commercial lease in New York?

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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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Joshua B. on ContractsCounsel
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Joshua B.

Founder
Free Consultation
Austin, Texas
24 Yrs Experience
Licensed in NY TX
University of Texas

Josh Bernstein has been serving real estate and corporate transactional clients since 2002. His experience is varied, and he enjoys working on and puzzling out novel and complex corporate and real estate matters. Josh’s experience includes, among other things, the following: representation of public companies in connection with SEC reporting and compliance work (proxies, 10-K’s; 10-Q’s; 8-K’s, etc.); representation of public and private company securities issuances (including private placements, and other similar offerings); assistance in structuring and drafting joint ventures, both for investors and operating partners, and including both real estate and corporate ventures; handling public and private company mergers and acquisitions; and asset sales and dispositions; assisting clients, big and small, with real estate acquisitions, sales and financings; managing large-scale and multi-state real estate portfolio acquisitions, dispositions and financings; complex condominium creation, structuring and governance work, including: commercial condominiums, use of condominiums as a land planning tool, wholesale condominium property acquisitions and dispositions, and rehabilitating failed or faulty condominium legal structures to make ready for sale; development of restrictive covenants and owners’ association documents for master-planned communities; compliance with federal statutes governing real estate sale and development (including, without limitation, the Interstate Land Sales Full Disclosure Act, the Housing for Older Persons Act, and the Americans with Disabilities Act); representation of real estate lenders, for both improved and unimproved property, and including numerous construction financings secured by real estate; assistance with commercial leasing; from both the landlord and tenant side, and including condominium leasing; training residential home and condominium sales staff for compliance with applicable local and federal law; and workouts of all kinds. When he’s not busy lawyering, Josh may be found watching 80’s commercials, flying a single-engine plane, playing poker, or trying to be a good dad.

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I am Muhammad, a legal counsel, technology law advisor, and corporate and commercial law expert, licensed to practice in New York State. I graduated from University of London and Georgetown Law Center and have about 7 years of experience in corporate and commercial law. As a As a technology law advisor, I possess deep insights into SaaS agreements, master service agreements, master subscription agreements, and SaaS Agreements, among others.

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Alyssa M. Reid is a New York–based transactional attorney advising founders, creatives, and companies on commercial agreements, intellectual property, and strategic business matters. Her practice focuses on drafting, reviewing, and negotiating a wide range of contracts, including service agreements, licensing and IP deals, publishing agreements, and talent/influencer contracts. Alyssa is known for combining strong legal analysis with a practical, business-minded approach. She helps clients understand what they’re signing, identify risks, and negotiate terms that protect their long-term interests, particularly around ownership, revenue, and control. She represents clients across media, entertainment, technology, sports, and consumer industries, serving as a trusted advisor from early-stage growth through more complex transactions. Prior to founding AMR Law, PLLC, Alyssa practiced at Sidley Austin LLP and later served as outside general counsel to startups and entrepreneurs. She is licensed to practice in New York and holds a J.D. from New York Law School and a B.A. from New York University.

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Lawyer Reviews for New York Commercial Lease Projects

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"Amazing to work with, answered all my follow-up questions without hesitation. Highly recommend Michael."

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"Zachary was prompt, clear, and helpful in reviewing our commercial lease agreement and providing redlines. Would be happy to work with him again."

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Commercial Real Estate

Commercial Lease

Maryland

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.)

Read 1 attorney answer>

Real Estate

Commercial Lease

Florida

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.

Read 1 attorney answer>

Commercial Real Estate

Commercial Lease

Maryland

Asked on Apr 27, 2023

What are the notice requirements for terminating the lease?

I am a business owner who recently signed a commercial lease for a property. I am looking to terminate the lease but am unsure of the notice requirements I must adhere to in order to do so. I would like to know what the notice requirements are for terminating the lease so that I can ensure I do not breach the terms of the lease.

Michael C.

Answered Jun 1, 2023

The notice requirements for terminating a commercial lease in Maryland are going to vary depending on the specific terms of your lease agreement. Please read and refer to your lease. If your lease is month to month, then it's likely you'll have to provide at least 30 days notice. If your lease is for a longer term (6 to 12 months), it's likely you'll have to provide at least 90 days notice, and may need to pay damages for breach of the lease agreement.

Read 1 attorney answer>

Real Estate

Commercial Lease

Florida

Asked on Apr 13, 2023

How long is a typical commercial lease agreement?

I am a small business owner looking to expand my operations, and I am considering leasing a commercial space. I understand that commercial lease agreements vary in length, but I am unsure how long the typical agreement is. I would like to know this information so I can better plan for my business needs and budget.

Moss S.

Answered Apr 28, 2023

The term of a commercial lease typically is no less than 3 years, and could be either 5 or 10 years. Both the Landlord and Tenant usually like long term leases.

Read 1 attorney answer>

Real Estate

Commercial Lease

Texas

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).

Read 1 attorney answer>
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