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3 factors to include in a commercial lease agreement

On Behalf of | Jan 13, 2023 | Commercial Leases

Completing a commercial property and getting ready to lease is a proud moment for developers. You can lease your space to business owners for offices or industries for warehouses, data centers and other industrial activities. Further, you may lease your property for mixed uses, in which case your tenants may be malls, restaurants, department stores, and so on.

Thus, commercial real estate (CRE) is expansive and investing in it offers significant advantages. However, to enjoy these benefits, you need contracts to protect your investment.

Here are three factors to include in your commercial lease agreement.


Your tenants need to know about different periods. Examples include the period in which the lease is considered active, the renewal period of the lease, when insurance coverage requirements will go into effect, the due date of the security deposit and the period for giving notice of termination of the lease. You should write about these periods in individual clauses.


You should explain how a tenant can and can’t use the property in the agreement. This may include the products and services they may offer or even the quality level of their operation.

Another aspect is the space to use. If you are leasing to one business, this may not be a major concern. But if you will have co-occupancy spaces, a tenant should know what portion of the property they can use.


Maintenance is one of the leading causes of landlord-tenant disputes. Thus, your agreement should have this clause, clearly explained to avoid misunderstandings. You should state when you are responsible for maintenance and when a tenant will be held liable.

You should draft top-notch commercial lease agreements. It is essential to learn how to negotiate, draft and review agreements to protect your rights.