Commercial Lease Agreement Template, Free Download 2026

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at _____________ (the "Premises"), consisting of approximately _____________ rentable square feet as delineated on the floor plan attached hereto as Exhibit A and incorporated herein by reference. The Premises includes all fixtures, improvements, and appurtenances thereto, together with the non-exclusive right to use Common Areas as defined in Article IV.

Tenant shall use and occupy the Premises solely for the purpose of _____________ (the "Permitted Use") and for no other purpose without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed. Tenant shall not use or permit the use of the Premises for any unlawful purpose or in any manner that would violate any certificate of occupancy, zoning ordinance, or applicable governmental regulation.

Tenant shall, at its sole cost and expense, obtain and maintain all licenses, permits, and governmental approvals required for the operation of Tenant's business at the Premises. Tenant shall comply with all applicable federal, state, and local laws, ordinances, codes, rules, and regulations relating to Tenant's use and occupancy of the Premises, including without limitation the Americans with Disabilities Act (42 U.S.C. §§ 12101 et seq.).

The initial term of this Lease (the "Initial Term") shall commence on _____________ (the "Commencement Date") and shall expire on _____________ (the "Expiration Date"), unless sooner terminated in accordance with the provisions hereof. If Landlord is unable to deliver possession of the Premises on the Commencement Date due to holdover by a prior tenant or incomplete construction, Landlord shall not be liable for any damages, but rent shall abate until possession is delivered.

Provided Tenant is not then in default beyond any applicable cure period, Tenant shall have the option to renew this Lease for _____________ (_____) additional successive terms of _____________ (each a "Renewal Term") by delivering written notice of its election to renew to Landlord not less than one hundred eighty (180) days prior to the expiration of the then-current term. Each Renewal Term shall be upon the same terms and conditions as set forth herein, except that Base Rent for each Renewal Term shall be adjusted as set forth in Section 3.2.

If Tenant holds over after the expiration or earlier termination of this Lease without the express written consent of Landlord, such tenancy shall be deemed a month-to-month tenancy at a monthly rental rate equal to one hundred fifty percent (150%) of the Base Rent in effect during the last month of the preceding term, subject to all other terms and conditions of this Lease. Such holdover tenancy shall be terminable by either party upon thirty (30) days' prior written notice.

Commencing on the Commencement Date, Tenant shall pay to Landlord base rent in the amount of $__________ per month ($__________ per annum) (the "Base Rent"), payable in advance on the first day of each calendar month during the Lease Term, without demand, deduction, or setoff, to Landlord at the address specified in Article XII or to such other address as Landlord may designate in writing. If the Commencement Date falls on a day other than the first day of a calendar month, Base Rent for such partial month shall be prorated on a per diem basis.

On each anniversary of the Commencement Date (each an "Adjustment Date"), the Base Rent shall increase by the greater of: (a) _____________ percent (_____%) of the Base Rent in effect immediately prior to the Adjustment Date; or (b) the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, All Items (1982-84 = 100), published by the Bureau of Labor Statistics, for the twelve (12)-month period ending on the most recently published index date preceding the Adjustment Date. In no event shall the adjusted Base Rent be less than the Base Rent in effect during the immediately preceding Lease Year.

"Operating Expenses" shall mean all costs and expenses incurred by Landlord in operating, managing, maintaining, repairing, and insuring the Building and Common Areas, including without limitation real property taxes and assessments, insurance premiums, utilities, janitorial services, landscaping, snow removal, security, management fees (not to exceed _____% of gross revenues), capital expenditure amortization as set forth in Section 4.3, and all other costs reasonably necessary for the operation and maintenance of the Building and its environs.

Tenant shall pay to Landlord, as Additional Rent, Tenant's Proportionate Share of Operating Expenses in excess of the Base Year Operating Expenses. "Tenant's Proportionate Share" shall be the percentage obtained by dividing the rentable square footage of the Premises by the total rentable square footage of the Building, which the parties stipulate to be _____%. Landlord shall furnish Tenant with a written estimate of Operating Expenses prior to or within ninety (90) days after the commencement of each calendar year, and Tenant shall pay one-twelfth (1/12th) of Tenant's Proportionate Share monthly with Base Rent.

Within one hundred twenty (120) days after the end of each calendar year, Landlord shall deliver to Tenant a statement (the "Reconciliation Statement") setting forth the actual Operating Expenses for the preceding year. If Tenant's payments exceed Tenant's Proportionate Share of actual Operating Expenses, Landlord shall credit the overpayment against future Additional Rent. If Tenant's payments are less than Tenant's Proportionate Share, Tenant shall pay the deficiency within thirty (30) days of receipt of the Reconciliation Statement. Tenant shall have the right, at its sole expense, to audit Landlord's books and records relating to Operating Expenses within ninety (90) days of receipt of the Reconciliation Statement.

Upon execution of this Lease, Tenant shall deposit with Landlord the sum of $__________ (the "Security Deposit") as security for the faithful performance by Tenant of all terms, covenants, and conditions of this Lease. Landlord may commingle the Security Deposit with its general funds and shall not be required to pay interest thereon unless required by applicable state or local law.

If Tenant defaults in the performance of any obligation under this Lease, Landlord may use, apply, or retain all or any portion of the Security Deposit for the payment of any rent or other sum in default, for the repair of damage to the Premises caused by Tenant, or for any other loss or damage sustained by Landlord as a result of Tenant's default. If Landlord so uses any portion of the Security Deposit, Tenant shall restore the Security Deposit to its full amount within ten (10) days of Landlord's written demand. Within the time period required by applicable state law following termination of this Lease and Tenant's vacation of the Premises, Landlord shall return the Security Deposit, less any amounts properly retained, together with an itemized statement of deductions.

Tenant shall, at its sole cost and expense, procure and maintain throughout the Lease Term the following insurance coverages: (a) commercial general liability insurance with limits of not less than $__________ per occurrence and $__________ in the aggregate, covering bodily injury, property damage, personal injury, and advertising injury; (b) property insurance covering Tenant's personal property, trade fixtures, and improvements in an amount not less than their full replacement cost; and (c) workers' compensation insurance as required by applicable law and employer's liability insurance with limits of not less than $__________ per accident.

All insurance policies required hereunder shall name Landlord, its managing agent, and any mortgagee designated by Landlord as additional insureds; shall be written by insurers licensed to do business in the state in which the Premises is located with an A.M. Best rating of A-VII or better; shall provide for thirty (30) days' prior written notice to Landlord of cancellation, non-renewal, or material alteration; and shall be primary and non-contributory with respect to any insurance carried by Landlord. Tenant shall deliver certificates of insurance to Landlord prior to the Commencement Date and at least thirty (30) days prior to the expiration of each policy.

Landlord and Tenant each hereby waive any and all rights of recovery, claims, actions, or causes of action against the other for any loss or damage to property covered or required to be covered by property insurance, regardless of cause, including the negligence of the other party. Each party shall cause its respective insurers to issue appropriate waiver of subrogation endorsements in favor of the other party.

Landlord shall maintain in good order, condition, and repair the structural elements of the Building, including the foundation, exterior walls, roof, and Common Areas, as well as the Building's mechanical, electrical, plumbing, and HVAC systems serving the Premises, except to the extent that damage thereto is caused by the acts or omissions of Tenant, its agents, employees, contractors, or invitees, in which case Tenant shall bear the cost of such repairs. Landlord shall not be liable for any failure to make such repairs unless Tenant has given Landlord written notice of the need for repair and Landlord has failed to commence such repair within a reasonable time after receipt of said notice.

Tenant shall, at its sole cost and expense, maintain the interior of the Premises in good order, condition, and repair, including all interior walls, ceilings, floors, doors, windows (excluding exterior glazing), plumbing fixtures, electrical fixtures, and all other improvements, fixtures, and equipment within the Premises. Tenant shall promptly notify Landlord of any condition in the Premises that requires repair by Landlord pursuant to Section 7.1 or that may constitute a hazard to person or property.

Tenant shall not make any alterations, additions, or improvements to the Premises (collectively, "Alterations") without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed for non-structural Alterations costing less than $__________. Tenant's request for consent shall include detailed plans and specifications, identification of contractors, evidence of contractor insurance, and estimated costs. All Alterations shall be performed in a good and workmanlike manner, in compliance with all applicable laws, codes, and regulations, and shall not impair the structural integrity of the Building.

All Alterations, whether or not made with Landlord's consent, shall become the property of Landlord upon installation and shall remain upon and be surrendered with the Premises upon the expiration or earlier termination of this Lease, unless Landlord notifies Tenant in writing at the time of granting consent that Landlord will require the removal of specific Alterations, in which case Tenant shall remove such Alterations and restore the Premises to their condition prior to such Alterations at Tenant's sole cost and expense. Tenant shall keep the Premises free and clear of all liens arising out of any work performed, materials furnished, or obligations incurred by or on behalf of Tenant.

Tenant shall not assign this Lease or any interest herein, nor sublet the Premises or any part thereof, nor permit the use of the Premises by any party other than Tenant, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed. Any attempted assignment, subletting, or transfer without such consent shall be void and of no force or effect, and shall constitute a default under this Lease. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting.

Notwithstanding the foregoing, Tenant may, without Landlord's consent but upon prior written notice to Landlord, assign this Lease or sublet the Premises to: (a) an affiliate or subsidiary of Tenant; (b) a successor entity resulting from a merger, consolidation, or reorganization of Tenant; or (c) a purchaser of all or substantially all of the assets of Tenant's business conducted at the Premises, provided that the assignee or subtenant has a net worth at least equal to that of Tenant as of the date of this Lease and assumes in writing all obligations of Tenant hereunder. In the event of any assignment or subletting at a rental rate exceeding the Base Rent payable hereunder, Landlord shall be entitled to _____% of such excess rental.

The occurrence of any of the following shall constitute an "Event of Default" by Tenant: (a) failure to pay Base Rent or Additional Rent within five (5) business days after written notice that the same is past due; (b) failure to perform any other obligation under this Lease within thirty (30) days after written notice from Landlord specifying such failure, provided that if such failure cannot reasonably be cured within thirty (30) days, Tenant shall not be in default if Tenant commences cure within such period and diligently pursues the same to completion; (c) Tenant's abandonment of the Premises; (d) Tenant's filing of a petition for bankruptcy or insolvency, or the appointment of a receiver or trustee for Tenant's assets.

Upon the occurrence of an Event of Default, Landlord may, at its option and in addition to all other rights and remedies available at law or in equity: (a) terminate this Lease by written notice to Tenant, in which event Tenant shall immediately surrender the Premises; (b) re-enter and take possession of the Premises and remove Tenant and all persons and property therefrom pursuant to applicable law; or (c) without terminating this Lease, re-let the Premises for the account of Tenant upon such terms as Landlord deems reasonable. In the event of termination, Tenant shall be liable for all damages as permitted under applicable state law, including the present value of the rent reserved for the balance of the Lease Term less the fair market rental value of the Premises for the same period, discounted at the rate of _____% per annum.

Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord), and hold harmless Landlord and its officers, directors, shareholders, partners, members, managers, agents, employees, successors, and assigns (collectively, the "Landlord Indemnitees") from and against any and all claims, demands, actions, liabilities, damages, costs, and expenses (including reasonable attorneys' fees and court costs) arising out of or relating to: (a) Tenant's use and occupancy of the Premises; (b) any act or omission of Tenant, its agents, employees, contractors, or invitees; (c) any breach or default by Tenant under this Lease; or (d) any injury to or death of any person or damage to property occurring in or about the Premises, except to the extent caused by the gross negligence or willful misconduct of Landlord.

Landlord shall indemnify, defend, and hold harmless Tenant and its officers, directors, shareholders, partners, members, managers, agents, employees, successors, and assigns from and against any and all claims, demands, actions, liabilities, damages, costs, and expenses (including reasonable attorneys' fees) arising out of: (a) Landlord's gross negligence or willful misconduct; (b) Landlord's breach of any representation, warranty, or covenant under this Lease; or (c) any injury to or death of any person or damage to property occurring in the Common Areas or structural elements of the Building, except to the extent caused by the negligence or willful misconduct of Tenant. The indemnification obligations set forth in this Article shall survive the expiration or earlier termination of this Lease.

This Lease, together with all exhibits and addenda attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, warranties, commitments, offers, contracts, and writings, whether written or oral, relating to the leasing of the Premises. No amendment, modification, or waiver of any provision of this Lease shall be effective unless set forth in a writing signed by both parties. The failure of either party to enforce any provision of this Lease shall not constitute a waiver of such party's right to enforce such provision or any other provision in the future.

This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises is located, without regard to its conflict-of-laws principles. Any dispute arising out of or relating to this Lease shall be resolved exclusively in the state or federal courts located in the county in which the Premises is situated, and each party hereby consents to the personal jurisdiction of such courts. If any provision of this Lease is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. This Lease may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

All notices, demands, consents, and other communications required or permitted under this Lease shall be in writing and shall be deemed duly given: (a) when personally delivered; (b) one (1) business day after deposit with a nationally recognized overnight courier service; or (c) three (3) business days after deposit in the United States mail, certified or registered, return receipt requested, postage prepaid, addressed to the respective party at the address set forth in this Lease or such other address as either party may designate by written notice to the other. This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.