What you need to know about a commercial lease agreement

Whether you’re considering subleasing, leasing or leasing out your property, there are many things you need to know about a commercial lease agreement. You’ll need to understand the specific terms of the contract to get the best deal for your business. Here are some of the key points to remember.


Whether you’re a landlord or a tenant, you should pay attention to the taxes in a commercial lease agreement. These are taxes levied by your local municipality. They can be confusing.

Taxes in a commercial lease agreement can be divided into three categories: real property taxes, business rates, and charges from the government. The taxes in a commercial lease agreement may look different from taxes. Some of these taxes may be fixed, and others may be variable. It’s essential to make sure that you’re paying the correct amount.

Real property taxes are based on the cadastral rental value of the property. In other words, it’s based on the value of the space that the landlord is renting. The tenant must pay the landlord a percentage of this value. A landlord may also charge the tenant for charges based on the tenant’s business operations.

Businesses can opt for a net lease or a gross lease. A net lease details the costs of charges and how the tenant pays them. It can be essential when a landlord tries to make you pay for things you wouldn’t otherwise be obligated to.

Obligation for repair

In a typical commercial lease, the landlord or tenant will be responsible for repairs to the property. The landlord must repair the electrical system, plumbing, foundation and exterior walls.

Sometimes, a landlord is tempted to demand repairs from the tenant. In these situations, it is essential to make sure that repairs are handled promptly.

Many commercial leases provide for structural repairs. Those repairs include windows, carpeting, partition walls and stairways.The landlord may also be responsible for structural repairs ordered by public authorities. It could include the repairs required to bring a building into compliance with a city ordinance.

Exclusivity clause

An exclusive use clause can be very broad or very narrow. It’s important to know what your options are. A more restrictive clause may restrict your tenant, but you can also limit your tenant’s damages if you break the lease.

An exclusive use clause should be carefully drafted and enforceable. It should also be clear and include a set of penalties for violating it. Landlords and tenants must work together to define and execute an effective exclusive use clause.

Consult a real estate attorney when you negotiate a new lease with an exclusivity clause. An attorney can protect your business and help you negotiate a lease that does what you want.

A good exclusive use clause from commercial leasing should cover your tenant’s primary products and services. It should also include processes around order delivery and service and other supply details.

Property Specifications

One of the first steps in creating a commercial lease is to create a list of property specifications. These may be related to the size and layout of the space, or they may be related to the building’s structural components.

There are many requirements to consider, and they vary depending on your business, your location, and your needs. In the case of office space, you might be looking for a particular type of business space, such as a small office suite or a larger conference room.


Whether you are a landlord or a tenant, a sublease can be an essential option to help ensure the success of your business. But you need to know precisely what subleasing entails.

Subleasing is a transaction in which one party transfers all or part of the leased premises to another party for an unexpired term. In most cases, this involves small to medium-sized properties.

Some commercial lease agreements explicitly prohibit subleasing. However, these can be difficult to find. If your business needs change or you want to add more space, it may be worth exploring the options.

A sublease is similar to a traditional lease, but the rights and obligations between tenant and subtenant are separate. In addition, a sublease can include certain restrictions that are not part of a standard lease.

Personal exposure

Getting a top-shelf apartment or condominium is a rite of passage for many urbanites. For the discerning tenant, you need to do your homework, or you could be walking the halls of the castle. To this end, you’ll need to know what’s what when it comes to your tenant’s etiquette.

Luckily, there are some clever tips and tricks to tame the tyrannies of tenant tyrannies. The key is to be prepared and armed with the right knowledge. You’ll be one step closer to the coveted dream job. For more details, contact your local law firm. Hopefully, you won’t be on the hook for your tenant’s misdeeds.