What you should include in a commercial leasing agreement

On Behalf of Marcus, Gould & Sussman, LLP | Sep 9, 2025 | Commercial Real Estate | From finding the right property to developing it for use, commercial real estate is a significant investment of time and money. But, with the right tenants, you will soon be able to reap the benefits of all your hard work. Once you find the right tenants, a well-drafted leasing agreement is the cornerstone of protecting your investment and building a mutually beneficial relationship. While every landlord-tenant agreement has its unique properties, here is what should be included: Identify the parties The agreement must clearly state the full legal names of the landlord and the tenant. For businesses, this includes the official registered name. Premises The lease must provide a precise description of the property being rented, including the suite number, square footage and a floor plan or site map attached as an exhibit. This ensures there is no confusion about which specific space the tenant has the right to occupy, including any shared areas like parking lots or restrooms. Lease term The lease term is the length of time the agreement is in effect and should specify the exact start and end dates. These are crucial for calculating rent and planning for renewal or when the lease obligations conclude. Rent and security deposit The rent is more than just stating a monthly amount. In addition to the base rent, the agreement should specify how and when rent increases will occur, outline other expenses such as common area maintenance fees and detail the due date and penalties for late payments. A security deposit protects the landlord against tenant default or damage to the property. This clause should specify: The amount of the deposit. The conditions under which the landlord can keep the funds The timeline and process for returning the deposit to the tenant after the lease ends Maintenance and repairs This section should spell out the responsibilities for maintenance and repairs. Typically, a landlord is responsible for the structural components of the building, such as the roof, foundation, and major systems like HVAC. The tenant is usually responsible for maintaining the interior of their leased space. Dispute resolution Disagreements may arise, so this clause describes how to resolve them. It may require the parties to first attempt mediation before proceeding to arbitration or litigation. A commercial lease is a complex legal document with long-term consequences. Having your agreement drafted by a legal professional ensures it’s comprehensive and fully outlines the rights and responsibilities of the landlord and tenant. Making this investment up front can save you from costly disputes and complications down the road.