Lease Agreement (Commercial)

Simply complete the Commercial Lease Agreement form below and click View Results to see your completed contract.

LawDepot's Commercial Lease Agreement:

  • Is used as a lease agreement for buildings, office space, retail stores, and other commercial space.
  • Offers customizable options for rent, damage deposit, fixed/periodic tenancy, costs, utilities, rent increases, improvements, signing incentives, options to renew, and more.
  • Is an inexpensive, convenient, and easy-to-use Commercial Lease Agreement.
If the property to be let is a house, flat, houseshare, flatshare or room, you should use our Tenancy Agreement instead.
We regularly maintain this contract. Last Modified: October 2008

Lease Details

Check to Show Hints for Completing this Form
This lease software has the flexibility to let you quickly create the lease document you want. It does this by providing many options with appropriate defaults.
One common default is 'Do Not Specify'. This default means that the finished agreement will not have a clause dealing with that topic. The benefit of not specifying is that you get a shorter and simpler document; however, the document will be less precise. Also, in some cases, the issue is not even applicable. For example, if you do not wish to discuss the topic of "pets" in the Lease, then it is appropriate to pick 'Do Not Specify'.
If you want to fill in a particular item after you have printed the document, you can enter underscore characters (ie. _____).
Lease will be governed by the Laws of: Q. What is the governing law of my lease? A. The governing law will be the jurisdiction in which the property is located, regardless of which jurisdictions the landlord and tenant reside.
Type of Lease Agreement:
Lease Format
 Q. What additional clauses does the long version include? A. Some of the additional clauses in the long version include clauses that set out the basic terms and definitions in the lease as well as clauses detailing the parties' insurance obligations and repairing obligations.
 
The Lease will be drafted in the:
The Long Version of the Lease includes additional clauses and terms that will make your lease more precise, able to deal with more situations and easier to enforce. The Short Version omits those terms that may not be absolutely necessary to express your terms.
Landlord
 
Type:
Name:  
Address:
Phone #:  
Fax #:  

Number of Landlords: One Two
 
Second Landlord
 
Type:
Name:  
Address:
Note: Only the address and contact information of the first landlord is used for service.
Tenant
 
Type:
Legal Name:
Operating Name:  
(Name of the Tenant's Business that is used in its advertising)
(Leave blank to omit)
Address:  
Phone #:
(Leave blank to not mention it)
Fax #:
(Leave blank to not mention it)

Number of Tenants: One Two
 
Second Tenant
 
Type:
Legal Name:
Address:  
Note: Only the address and contact information of the first tenant is used for service.
Guarantor
 
Is a Guarantor required? Yes No Q. What is a guarantor or surety? A. A guarantor or surety is a person who agrees to pay any losses directly to the landlord should the tenant be unable to pay the rent, or otherwise breach the tenancy agreement.
Name:  
Type:
Address:
(e.g. Address, Town/City, County Postcode)
Phone #:  
Fax #:  
Leased Premises
 
Address of Premises:
(e.g. Address, Town/City, County Postcode)

Does this letting comprise only part of a building? Yes No

Further Description of Premises:
Attach Plan of Premises to Lease? Yes No
Where there is a letting of part of a registered title, a plan must be attached to this lease and any floor levels must be specified.
Describe the Amount of Area in the Premises? Yes No
Area:
Provide the Legal Description of the Premises? Yes No Q. What is the legal description of a premises? A. The legal description of the premises refers to how the property is identified in real estate legal transactions. The description can be found in a deed, mortgage, or other purchase document or may be obtained from a county recorder, land titles office, tax assessor, or other similar official.
Legal Description of Premises:
(e.g. Plan A, Block one (1), Lot one (1), excepting thereout all mines and minerals)
Provide Further Details in Describing Premises? Yes No
Other Details Describing the Premises:
Permitted Use of Premises: Q. How is the tenant allowed to use the premises? A. The tenant can only use the leased property for purposes that have been approved by the Landlord. The "permitted use of premises" clause limits the tenant to engage in certain types of business only. Before allowing the tenant to use the property for additional purposes that are not stated in the Lease, the tenant needs to obtain the consent of the Landlord.
(What type of business the Tenant will be conducting in the Premises such as 'brokerage office')
Pets(s) are allowed in Premises?
Parking Available?
Parking Description:  (e.g. stall #323 and #324)
Parking is included in the Rent? Yes No
Monthly Parking Cost:  (e.g. 30.00)
FixturesQ. What are fixtures? A. In real estate terminology, the word "fixture" refers to a piece of property that is sufficiently permanently attached to the Premises so that to move or remove it would damage the property. If the attached part of the property can be removed without significant damage to the property then it is usually not considered a fixture. Examples of fixtures may include built in cabinets, sinks, toilets or wall-to-wall carpeting. / Leasehold ImprovementsQ. What are leasehold improvements? A. A leasehold improvement is an expense incurred for the permanent improvement to the leased property. They are considered fixed assets and depreciate in value over the period of the lease. /ChattelsQ. What are chattels? A. Chattels are personal property. They are distinct from real property or real estate in that they can be moved from one location to another. Examples of chattels may include blinds or curtains, microwaves, refrigerators, desks and personal computers. /Inventory:
Description of Fixtures and Leasehold Improvemnts:
Lease Term
 
Type of Lease Term: Click here for description of the different types of lease terms available.
Number of Weeks:
Number of Months:
Number of Years:
Number of Fortnights:
  (e.g. 10)
Date Lease Starts:  (e.g. 1st July 2006)
Date Lease Ends:  (e.g. 30th June 2007)
Possession (Occupancy) Date:
Enter a possession date only if you want to allow the Tenant to have possession of the Premises BEFORE the lease start date. (e.g. 30th June 2006)
Is the lease term 7 years or longer? Yes No
 
Security of Tenure  Q. What is “security of tenure”? A. Security of tenure refers to the tenant's right to remain in the property. More specifically, the Landlord and Tenant Act 1954 provides commercial tenants security of tenure by giving them the right to renew their tenancy when their lease comes to an end.
 
Would you like to contract out of the Landlord and Tenant Act, 1954?  Yes No Q. What does “contract out” mean? A. Contracting out of the Landlord and Tenant Act 1954 allows the landlord and tenant to agree that that the tenant will have no security of tenure. This means that when the lease has expired, the tenant will be unable to apply to the court for a new tenancy (under the Landlord and Tenant Act 1954 tenants with business leases for more than one year generally have security of tenure when the lease expires). If the Landlord and Tenant do not contract out of the Landlord and Tenant Act 1954, then special notices (Section 25 Notice or Section 26 Notice) will have to be filled by the landlord and/or tenant in order to extend the lease.
Who will be signing the declaration agreeing to exclude security of tenure? Tenant Person Authorised by Tenant
This Commercial lease provides a declaration which either the Tenant or a person authorised by the Tenant must sign.

Declarant (person authorised by the Tenant)
Name:
Address:
 
Break Clause
 
Would you like to insert a break clause? Yes No  Q. What is a “break clause”? A. Leases may include a provision known as a break clause which allows either the tenant or the landlord (or both) to end the lease at a specified date without waiting for the full term of the lease to expire. This may be beneficial to the party who wants to end the lease early – such as a landlord who wants to redevelop or a tenant who wishes to leave without finding a subtenant or assignee– however early termination may result in problems and/or loss to the other party.
When can this breaking provision be exercised?
(Enter the date on which either party has the right to end the lease e.g. 26 November 2007)
How much notice is required to end the term of the lease?
(e.g. 1 month, 3 weeks)
Rent
 
Tenant will Pay this Rent: Q. What is "Base rent"? A. Base rent refers to the minimum or base amount of rent payment as set out in the lease excluding percentage rents or any other additional or operating costs. Q. What is a "percentage lease"? A. A percentage lease refers to a specific type of rental arrangement that applies mainly to retailers, especially in shopping centers or multiple-tenant malls. In a percentage lease, the tenant pays a fixed or base rent plus a percentage of gross income. To create this type of rental arrangement, have the tenant pay "Base Rent plus % of Gross Profits". Q. What is a Gross rent lease? A. A Gross rent lease is a type of commercial lease where the tenant pays the base rent and any specified expenses with respect to the Premises and the landlord pays all other expenses associated with operating and maintaining the property. Operating expenses may include insurance, utilities, maintenance expenses and sometimes taxes. Q. What are "FRI leases"? A. An FRI lease means a full repairing and insuring lease where all costs of maintenance and repair and the cost of insurance (whether insured directly or through the Landlord) are met by the Tenant.
(With the 'Base Rent Plus Specified Service Charges' option, you can have only base rent or you can also specify additional charges such as utilities, taxes, maintenance and insurance)
Tenant will Pay Rent Every:   Q. When is rent payable? A. Rent is usually payable quarterly in advance on the usual quarter days: 25th March, 24th June, 29th September and 25th December. However, there is nothing to prevent a landlord and tenant agreeing to other dates for payment of rent.
Amount of Weekly Base Rent:
Amount of Monthly Base Rent:
Amount of Base Rent Paid Every 3 Months:
Amount of Base Rent Paid Every 6 Months:
Amount of Yearly Base Rent:
Amount of Fortnightly Base Rent:
  (e.g. 500.00)
Tenant pays Service Charges based on: Q. What are "FRI leases"? A. An FRI lease means a full repairing and insuring lease where all costs of maintenance and repair and the cost of insurance (whether insured directly or through the Landlord) are met by the Tenant.
(Proportionate Share is typically used in a FRI lease) 
Annual Service Charge that Tenant pays per Square Foot:
Annual Service Charges that Tenant pays per Square Metre:
  (e.g. 3.50)
Percent of Service Charges that Tenant pays:  (e.g. 10.00)
Tenant pays Service Charges as follows:
(e.g. Tenant to pay the following Service Charges ...)
Percentage of Gross Profit that is Additional Rent:  (e.g. 10.00)
Day of the Week for Payment:
Day of the Month for Payment:
Day of the Fortnight for Payment:
Date for Yearly Payment:
(e.g. Monday, Tuesday)
(e.g. first, tenth)
(e.g. July 1st)
(e.g. first day, third day)
Address for Payment:
(leave blank to not specify it in lease)
 
Rent Increase
 
Notice Required to Increase Rent:
Number of Days:  (e.g. 14, 30, 45 or 60)
Built-in rent increases:
Describe Rent Increases:
(e.g. Weeks 1-12 - $100.00, Weeks 13-24 - $125.00, etc.)
(e.g. Months 1-6 - $400.00, Months 6-12 - $500.00, etc.)
(e.g. First Year - $1000.00, Second Year - $1250.00, etc.)
 
Interest
 
Charges for Interest:
(e.g. If Rent is late, then interest will be due at 3% above the base rate of the Bank of England)
Land Registry Information for Prescribed Clauses Leases
Note: From June 2006, all registrable leases must come with prescribed clauses in order to be registered. The Land Registry will only rely on what is provided under the Prescribed Clauses to register a title. They will no longer review the lease itself. Ensure that you have included all relevant information in this section without any errors or omissions.
 
Landlord Title Number(s):   Q. Do I have to provide landlord title number(s)? A. If the landlord's title is registered, you should provide title
number(s). If the property is not registered, then you should leave this section blank.

Click for more information
Other Title Number(s):   Q. Do I have to provide other title numbers? A. You must provide other title number(s) when there are any
title(s) (other than the landlord's) against which you are applying to make entries on matters relating to:

Click for more information
Premium to be paid? Yes No  Q. What are premiums? A. A premium is the price a tenant pays to a landlord to purchase a lease. A premium is most often taken in return for the rent being reduced to what would otherwise be payable. For new commercial leases not exceeding 25 years, it is rare to take a premium. Premiums are most commonly used for long leases of residential property.
Provide Details of Premium:
Where the premium includes an element of VAT, include this in the figure by stating for example, "£100,000 plus VAT of £17,500" or "£117,500 inclusive of VAT"
Will the tenant have a contractual right to renew this lease, acquire the reversion, acquire another lease of the property or acquire an interest in other land? Yes No Q. What does “reversion” mean? A. Reversion refers to any interest left over after the lease has come to an end (i.e. the freehold or a superior lease).
Provide Details:
Are there any restrictive covenants related to other property? Yes No Q. What is a restrictive covenant? A. A restrictive covenant is a legal obligation which limits/restricts the use of land. The party that is burdened by the covenant is sometimes referred to as a "covenantor" and the party that benefits from the covenant is sometimes referred to as a "covenantee." Often, restrictive covenants are used to preserve and protect the physical, social, and economic integrity of the neighbouring property in a subdivision. They may be used to control lot size, control architectural design, or regulate activities.
Provide Details of Restrictive Covenant:
Are there any easements granted for the benefit of this property? Yes No Q. What is an easement? A. An easement is a right to use the land of another. A common example of an easement is a right of way (e.g. the right to pass over your neighbour's land to empty your bins).
Provide Details of Easement:
Are there any easements granted or reserved for the benefit of other property? Yes No
Provide Details of Easement:
Are there any estate rentcharges burdening the property? Yes No Q. What is an estate rentcharge? A. The term "Estate rentcharge" refers to how rentcharge is defined in s.1(2)(b) of the Law of Property Act 1925. In short, a rentcharge works like a ground rent as a (usually small) annual payment. Rent charges apply only in certain areas of England. If you are not aware of any rentcharges, select “No” to the question “Are there any estate rentcharges burdening the property?”
Provide Details:
Are you applying for a standard form of restriction? Yes No Q. What is a standard form of restriction? A. A restriction is an entry on the register which regulates how an estate or charge may be entered in the register.

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How many restrictions?
 
First Restriction
Restriction is to apply to: This Property Another Title
Title Number:
Standard Form of Restriction:
Set out the full text of the standard form of restriction. The standard forms of restriction are set out in Schedule 4 of the Land Registration Rules 2003.
 
Second Restriction
Restriction is to apply to: This Property Another Title
Title Number:
Standard Form of Restriction:
Set out the full text of the standard form of restriction. The standard forms of restriction are set out in Schedule 4 of the Land Registration Rules 2003.
 
Third Restriction
Restriction is to apply to: This Property Another Title
Title Number:
Standard Form of Restriction:
Set out the full text of the standard form of restriction. The standard forms of restriction are set out in Schedule 4 of the Land Registration Rules 2003.
 
Fourth Restriction
Restriction is to apply to: This Property Another Title
Title Number:
Standard Form of Restriction:
Set out the full text of the standard form of restriction. The standard forms of restriction are set out in Schedule 4 of the Land Registration Rules 2003.
 
Fifth Restriction
Restriction is to apply to: This Property Another Title
Title Number:
Standard Form of Restriction:
Set out the full text of the standard form of restriction. The standard forms of restriction are set out in Schedule 4 of the Land Registration Rules 2003.
Security/Damage Deposit Q. What is a security/damage deposit? A. A security deposit is a sum of money the tenant pays to the landlord to guarantee that the tenant will fulfill all obligations under the lease. The landlord holds the security deposit for the term of the lease to ensure that the tenant does not default on the terms of the lease agreement or otherwise damage the property. Should the tenant damage the property (normal “wear and tear” excluded) or if the Tenant has not paid rent, the landlord is entitled to recoup the debt from the security deposit. Usually the tenant must provide the landlord with the security deposit at the start of the lease term. At the end of the lease term, the tenant will receive the deposit back minus any deductions for repairs/restoration.
 
Advance Rent:
Security/Damage Deposit? Yes No
Schedule of Condition Required? Q. What is a schedule of condition? A. The schedule of condition is an inspection report for the let property which is completed at the commencement of the lease. This form contains a description of the condition of the property at the time of the tenant's possession and may also include a portfolio of photographs as evidence of the property's condition. The schedule is used at the end of the lease term as a comparison tool to determine if the tenant caused any damage to the property. The tenant should ensure that all damage is properly disclosed in this report to prevent a landlord from assuming the tenant has caused the damage.
Taxes
 
Taxes payable by Tenant? Specify Do Not Specify
Tenant pays taxes directly to the Landlord? Yes Do Not Specify
Tenant is to pay which taxes directly to the Landlord?:
(e.g. any Value Added Tax chargeable on the Rent)
Those Taxes are: Included in Rent In Addition to Rent
Tenant pays taxes directly to the local tax authority? Yes Do Not Specify
Tenant is to pay which taxes directly to the local tax authority?

Landlord Improvements and Signing Incentives Q. What is a signing incentive? A. A signing incentive is an incentive or concession given to the tenant to enter into the lease, such as a period of free rent.
 
Required Landlord Improvements:
Description of Landlord Improvements Required:
You may want to specify when the improvements need to be completed as part of the above description.
Signing Incentives:
How many weeks of free Base Rent?
How many months of free Base Rent?
How many quarters of free Base Rent?
How many semi-annual instalments of free Base Rent?
How many years of free Base Rent?
 (e.g. 1, 2, etc.)
Description of Signing Incentives:
(e.g. one month free rent, an improvement allowance for painting, etc.)
Tenant Improvements
 
Can the Tenant make Improvements?
Terms Regarding Tenant Performing Improvements:
Termination
 
Notice for non-payment: (e.g. 3 days)
Notice for other lease breaches: (e.g. 10 days)
Landlord's Notice without Cause: (e.g. 30 days, one month, etc.)
Tenant's Notice without Cause: (e.g. 15 days)
Utilities and Other Costs
 
Who is responsible for paying the following utilities and service charges for the Premises?
  Tenant Landlord Do Not Specify
Electricity
Natural Gas
Water
Sewer
Telephone
Internet
Cable
Other Expenses
(e.g. collection and disposal of refuse and rubbish from the Premises)
Maintenance
 
Tenant is Responsible for Maintenance: Yes Do Not Specify
Specify which Maintenance the Tenant is to perform or pay for:
  Yes Do Not Specify
Fixtures / Heating:
Sidewalk / Driveway:
Grass / Garden:
Other:
Specify other Maintenance the Tenant is to perform or pay for:
Insurance
 
Who is responsible for obtaining and paying for the following insurance?
  Tenant Landlord Do Not Specify
Tenant's Contents:  
Landlord's Contents:
Leased Premises:
Personal Injury on Property:
Tenant to Provide Proof of Insurance:
Miscellaneous
 
Notice to Enter (non-emergency):
Number of Hours:
(e.g. 12, 24 or 48)
 
Tenant has Option to Renew Lease:
Details of Option to Renew:
(e.g. the Tenant will serve a notice on the Landlord in accordance with Section 26 of the Landlord and Tenant Act 1954)
Payment of Legal Costs/Attorney Fees:
Tenant can AssignQ. What is assigning a lease? A. Assigning the lease refers to the complete transfer of all rights to occupy the premises for the rest of the term from the current tenant to a third party./SubletQ. What is subletting a lease? A. Subletting the lease refers to when the rights to use the property (or a part of the property) under a lease, is transferred by the current tenant to a third party for a portion of the remaining term of the lease. the Lease:
Note: Unless the particular circumstances of the letting justify greater control, the only restriction on assignment of the whole premises should be obtaining the Landlord's consent which is not to be unreasonably withheld.
Tenant to have Carpets Professionally Steam Cleaned: Yes No Q. When would the tenants have to have the carpets professionally steam cleaned? A. The tenants will be required to have the carpets professionally steam cleaned before the final move-out inspection occurs.
Tenant to have Exclusive Use in Building: Yes No
(No other tenant in the Building will be able to conduct as its principal business the same Permitted Use as this Tenant)
Ensure that you have provided the title numbers of any other land affected by this exclusive use. Title numbers should be entered under “Land Registry Information for Prescribed Clauses Leases” above.
Additional Clauses
How many Additional Clauses do you want to create?
First Additional Clause:
Second Additional Clause:
Third Additional Clause:
Fourth Additional Clause:
Fifth Additional Clause:
Sixth Additional Clause:
Signing Details Q. Who should sign the lease? A. Both the landlord and the tenant should sign the lease. Having witnesses to the parties' signatures provides greater evidence that the parties entered into the lease.
 
Agreement to be signed?
Q. I do not know when the lease will be signed. Can I fill in the date later? A. Yes, by selecting "Unsure" as the date the agreement will be signed, a blank line will be inserted into the lease so that you can add the correct date after printing the document.
Name of representative signing on behalf of Landlord:
Name of representative signing on behalf of second Landlord:
Name of representative signing on behalf of Tenant:
Name of representative signing on behalf of second Tenant:
Name of representative signing on behalf of Guarantor: