How to Write a Commercial Real Estate Tenant/Landlord Contract

A commercial real estate tenant/landlord contract is complex. Do not attempt to write it yourself. Use the assistance of an experienced commercial real estate lawyer.

Commercial real estate

Commercial real estate is different from residential real estate. Commercial real estate refers to real estate used for the operation of a business and includes office spaces, industrial units and retail space.

Commercial Real Estate Tenant/Landlord Contract

A commercial real estate tenant/landlord contract is often referred to as a rental agreement. There are two parties to the contract – the landlord and the tenant. The landlord is the person who owns the property and the tenant is the person or the business intending to rent the property. The contract will define the rights and obligations of both parties and also the legal remedies available to the parties in case of default by the other. Before your begin writing the contract, you will need the collect all required information about the property in question – its full postal and legal address, the total area being rented out, encumbrances on the property if any. There is no standard commercial real estate tenant/landlord contract that can be used for all commercial properties. Each contact is unique to the tenant and landlord.

Terms of Contract

The contract must contain the details of the landlord and tenant such as their names and address. If either party is a business organization, their business structure should be clearly indicated on the contract and the person signing the contract on behalf of the business organization must have the authority to sign the contract. The contract should specifically define the term of the lease – the date of which the lease shall begin and the date of which the lease shall terminate. The payment clause must indicate the amount of security deposit, rent, the mode of payment and the date of which the rent must be paid. The contract should specify who will pay the maintenance and other related expenses, insurance and taxes. The termination clause should specifically state that the rights of the parties when the contract expires and also when the lease is terminated by either party. The contract must provide for termination of lease by either party and the required notice period. The contract must also list the restrictions if any on the use of the property by the tenant. If the parties agree that any dispute between them will be referred to arbitration or mediation instead of litigation, the contract must include such a clause.

Getting Legal Help

Writing a commercial real estate tenant/landlord contract requires the services of an experienced commercial real estate attorney. The attorney can ensure that the rights of both parties are protected in the contract.