Commercial Lease Agreement Generator

COMMERCIAL LEASE AGREEMENT

Effective Date: February 10, 2026

This Commercial Lease Agreement ("Lease") is entered into by and between:

Landlord: [Landlord Name]
Address: [Landlord Address]

AND

Tenant: [Tenant Name]
Address: [Tenant Address]

(each a "Party" and collectively the "Parties")

RECITALS

WHEREAS, the Landlord is the owner of certain commercial property located at [Property Address] (the "Premises"); and

WHEREAS, the Tenant desires to lease the Premises for lawful commercial purposes; and

WHEREAS, the Landlord is willing to lease the Premises to the Tenant under the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the Parties agree as follows:

1. PREMISES

1.1. The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the Premises located at:

[Property Address]

1.2. The Premises include all improvements, fixtures, and appurtenances currently located thereon, unless otherwise specified. The Premises shall be used solely for commercial purposes as further described in this Lease.

1.3. The Tenant acknowledges that they have inspected the Premises prior to the execution of this Lease and accepts the Premises in their current "as-is" condition, unless the Landlord has agreed to perform specific improvements as set forth in an addendum to this Lease.

2. TERM

2.1. LEASE TERM: The term of this Lease shall be one (1) year, commencing on the date of execution of this Lease (the "Commencement Date") and expiring at the end of the stated term (the "Expiration Date"), unless earlier terminated in accordance with this Lease.

2.2. POSSESSION: The Landlord shall deliver possession of the Premises to the Tenant on the Commencement Date. If the Landlord is unable to deliver possession on the Commencement Date, rent shall be abated until possession is delivered, and the Lease term shall be extended accordingly.

2.3. HOLDOVER: If the Tenant remains in possession after the Expiration Date without a new lease agreement, the tenancy shall become a month-to-month tenancy at 150% of the then-current Monthly Base Rent, subject to all other terms of this Lease. Either Party may terminate such month-to-month tenancy with thirty (30) days' written notice.

3. RENT

3.1. BASE RENT: The Tenant agrees to pay the Landlord a Monthly Base Rent of [Amount], payable in advance on the first day of each calendar month during the Lease Term.

3.2. ANNUAL ESCALATION: The Monthly Base Rent shall increase by three percent (3%) annually on each anniversary of the Commencement Date.

3.3. PAYMENT METHOD: Rent shall be paid by check, electronic transfer, or such other method as the Landlord may designate in writing. All payments shall be made to the Landlord at the address set forth above or to such other address as the Landlord may designate.

3.4. LATE CHARGES: If rent is not received by the fifth (5th) day of the month, the Tenant shall pay a late charge of five percent (5%) of the overdue amount. Additionally, any amounts not paid within ten (10) days of the due date shall accrue interest at a rate of 1.5% per month.

3.5. FIRST MONTH AND PRORATIONS: Upon execution of this Lease, the Tenant shall pay the first month's rent. If the Commencement Date does not fall on the first day of a month, rent for the partial month shall be prorated.

4. SECURITY DEPOSIT

4.1. Upon execution of this Lease, the Tenant shall deposit with the Landlord the sum of [Amount] as a security deposit (the "Security Deposit").

4.2. The Security Deposit shall be held by the Landlord as security for the Tenant's faithful performance of all obligations under this Lease, including but not limited to the payment of rent and the repair of damages beyond normal wear and tear.

4.3. The Landlord may apply the Security Deposit to cure any default by the Tenant, in which case the Tenant shall replenish the Security Deposit to its full amount within ten (10) days of written notice.

4.4. The Security Deposit (less any lawful deductions) shall be returned to the Tenant within thirty (30) days after the Tenant vacates the Premises, provided the Tenant has fulfilled all obligations under this Lease.

5. PERMITTED USE

5.1. The Tenant shall use the Premises solely for [Permitted Business Use] and for no other purpose without the prior written consent of the Landlord.

5.2. The Tenant shall not use the Premises for any unlawful purpose or in any manner that would violate any applicable law, ordinance, or regulation.

5.3. The Tenant shall comply with all applicable zoning laws, building codes, health regulations, fire codes, and environmental laws.

5.4. The Tenant shall not use the Premises in any manner that creates a nuisance or unreasonably disturbs other tenants or neighboring properties.

6. COMMON AREA MAINTENANCE (CAM)

6.1. In addition to the Base Rent, the Tenant shall pay the Tenant's proportionate share of Common Area Maintenance ("CAM") charges, which include but are not limited to: property taxes, insurance, landscaping, parking lot maintenance, exterior lighting, snow removal, trash removal, common area utilities, and management fees.

6.2. The Landlord shall provide the Tenant with an annual estimate of CAM charges, which shall be paid monthly in equal installments along with the Base Rent.

6.3. Within ninety (90) days after the end of each calendar year, the Landlord shall provide the Tenant with a reconciliation of actual CAM charges. Any overpayment shall be credited to the Tenant's next rent payment, and any underpayment shall be due within thirty (30) days.

6.4. CAM charges shall not include costs for capital improvements, except that the cost of capital improvements required by law or that reduce operating costs may be amortized over their useful life and included in CAM charges.

7. MAINTENANCE AND REPAIRS

7.1. LANDLORD RESPONSIBILITIES: The Landlord shall be responsible for maintaining the structural components of the building, including the roof, exterior walls, foundation, and common areas. The Landlord shall also maintain the building's HVAC, plumbing, and electrical systems, unless damage is caused by the Tenant's negligence or misuse.

7.2. TENANT RESPONSIBILITIES: The Tenant shall be responsible for maintaining the interior of the Premises in good condition, including routine cleaning, minor repairs, and replacement of light bulbs, filters, and similar consumables.

7.3. ALTERATIONS: The Tenant shall not make any structural alterations, additions, or improvements to the Premises without the Landlord's prior written consent. Non-structural improvements under $5,000 may be made with prior written notice to the Landlord.

7.4. SURRENDER: Upon expiration or termination, the Tenant shall surrender the Premises in the same condition as received, reasonable wear and tear excepted. The Tenant shall remove all trade fixtures and personal property, repairing any damage caused by such removal.

8. INSURANCE

8.1. TENANT INSURANCE: The Tenant shall maintain, at its own expense:
    (a) Commercial General Liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate;
    (b) Business Personal Property insurance covering the Tenant's property;
    (c) Workers' Compensation insurance as required by law;
    (d) Business Interruption insurance sufficient to cover at least six (6) months of rent and operating expenses.

8.2. The Tenant shall name the Landlord as an additional insured on all liability policies and provide certificates of insurance upon request.

8.3. LANDLORD INSURANCE: The Landlord shall maintain property insurance covering the building and improvements.

8.4. WAIVER OF SUBROGATION: Both Parties waive all claims against the other for damage covered by insurance and shall obtain corresponding waivers of subrogation from their insurers.

9. DEFAULT AND REMEDIES

9.1. TENANT DEFAULT: The Tenant shall be in default of this Lease if:
    (a) Rent or any other payment is not received within ten (10) days after written notice of nonpayment;
    (b) The Tenant fails to perform any other obligation and such failure continues for thirty (30) days after written notice;
    (c) The Tenant files for bankruptcy or becomes insolvent;
    (d) The Tenant abandons the Premises.

9.2. LANDLORD REMEDIES: Upon Tenant default, the Landlord may:
    (a) Terminate this Lease and retake possession of the Premises;
    (b) Re-enter and re-let the Premises on behalf of the Tenant;
    (c) Recover all unpaid rent, damages, and costs (including reasonable attorney's fees);
    (d) Exercise any other remedies available at law or in equity.

9.3. LANDLORD DEFAULT: If the Landlord fails to perform any material obligation and such failure continues for thirty (30) days after written notice from the Tenant, the Tenant may: (a) cure the default and offset reasonable costs against rent; or (b) terminate this Lease upon an additional thirty (30) days' written notice if the default remains uncured.

10. RENEWAL OPTION

10.1. The Tenant shall have the option to renew this Lease for one (1) additional term of one (1) year upon the same terms and conditions, except that the Monthly Base Rent for the renewal term shall be adjusted to the then-current fair market rate, but no less than the Monthly Base Rent in effect at the end of the initial term.

10.2. The Tenant must exercise this renewal option by providing written notice to the Landlord no later than one hundred eighty (180) days prior to the Expiration Date.

10.3. If the Parties cannot agree on the fair market rent within thirty (30) days of the Tenant's renewal notice, the fair market rent shall be determined by a qualified independent commercial real estate appraiser mutually agreed upon by the Parties.

11. ASSIGNMENT AND SUBLETTING

11.1. The Tenant shall not assign this Lease or sublet the Premises, in whole or in part, without the Landlord's prior written consent, which shall not be unreasonably withheld or delayed.

11.2. Any approved assignment or subletting shall not release the Tenant from its obligations under this Lease unless the Landlord expressly agrees in writing.

11.3. If the Tenant receives sublease income in excess of the rent due under this Lease, such excess shall be shared equally between the Landlord and the Tenant.

12. UTILITIES AND SERVICES

12.1. The Tenant shall be responsible for all utilities serving the Premises, including electricity, gas, water, sewer, internet, and telephone, unless otherwise agreed in writing.

12.2. The Landlord shall not be liable for any interruption of utility services unless caused by the Landlord's negligence.

13. INDEMNIFICATION

13.1. The Tenant shall indemnify, defend, and hold harmless the Landlord from all claims, damages, losses, and expenses arising from the Tenant's use and occupancy of the Premises, except to the extent caused by the Landlord's negligence or willful misconduct.

13.2. The Landlord shall indemnify, defend, and hold harmless the Tenant from all claims arising from the Landlord's negligence or willful misconduct, or from defects in the building structure or common areas.

14. GENERAL PROVISIONS

14.1. GOVERNING LAW: This Lease shall be governed by the laws of [Jurisdiction].

14.2. ENTIRE AGREEMENT: This Lease constitutes the entire agreement between the Parties and supersedes all prior negotiations and agreements.

14.3. AMENDMENTS: This Lease may only be modified by written agreement signed by both Parties.

14.4. SEVERABILITY: If any provision is held invalid, the remaining provisions shall remain in effect.

14.5. NOTICES: All notices shall be in writing and delivered by certified mail or recognized overnight courier to the addresses set forth above.

14.6. QUIET ENJOYMENT: The Landlord covenants that the Tenant, upon paying rent and performing all obligations, shall peaceably and quietly enjoy the Premises during the Lease Term without interference.

14.7. FORCE MAJEURE: Neither Party shall be liable for failure to perform due to causes beyond their reasonable control.

14.8. SIGNS: The Tenant may install reasonable business signage on the Premises, subject to Landlord's approval and compliance with local regulations.


IN WITNESS WHEREOF, the Parties have executed this Commercial Lease Agreement as of the Effective Date.


LANDLORD:

Signature: ____________________________
Name: [Landlord Name]
Title: ____________________________
Date: ____________________________


TENANT:

Signature: ____________________________
Name: [Tenant Name]
Title: ____________________________
Date: ____________________________


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