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What terms should be included in a commercial lease?

Creating a commercial lease is one of the most important things you must do when renting commercial property. Whether you want to rent space for your office, for storage or to open a store, a commercial lease is vital to the success of your business. So, what terms should be included in a commercial lease?

One of the most important terms that must be included is the rent. Rent isn't always locked in, which means you should be able to negotiate the price you pay per month for the space you are renting.

You should include a term clause in the lease as well. This clause explains when the lease begins, which typically is when you sign on the dotted line. However, you can include stipulations as to how and when you can move into the space and when you should begin making rent payments.

The lease should also include the correct business names of all parties involved in the lease. Do not use your name or the name of the landlord in the lease. Use business names to protect each other from liability.

A premises clause is also vital to your commercial lease. It must accurately describe what type of property you will be renting. This is especially important when you are renting one floor of a building or one room of a building and not the entire building.

When you set out to create a commercia lease you need to make sure all of the terms mentioned today are included. The lease makes it easier to cancel when you have the terms in writing. The lease also protects you from losing money in the transaction.

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Lawrence R. Jensen & Associates
95 S. Market St.
Ste. 550
San Jose, CA 95113

Phone: 408-465-0293
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