Commercial real estate

Understanding the Basics of Commercial Lease Clauses

Do you know what commercial real estate lease provisions should be included in a lease agreement? Basic commercial real estate lease terms will assist you in properly structuring a commercial real estate lease agreement. In your leasing agreement, you should include opening paragraphs that do the following:

• Describe the surroundings.
• Indicate the length of the lease.
• Indicate the amount of the rental or lease payment.

You’ll almost always be dealing with a five-year lease. As a result, you must specify in the lease how rental increases will occur each year over the term of the lease. You might also provide further tenant behaviour guidelines, stating what renters are permitted to do and what they are not permitted to do. You can select whether they can assign the lease, sublease it, or just sublet it (subject to the landlord’s agreement).


Because of storms, signage becomes an issue in some areas, such as Florida. Not the wind itself, but the debris that the wind whips around is one of the most significant risks to life and limb in a hurricane.

If a hurricane comes along and pulls off bits of glass or plastic from a poorly anchored sign, they can become lethal missiles. As a result, you run into a variety of code concerns, such as how signs must be built, what materials must be used, and other similar issues. As a result, you must add a language in your lease that states that no signage may be installed on the land unless:

1. Get permission from your landlord.
2. Proper permitting through local county or city authorities, ensuring that signage are code compliant and follow local laws and regulations.

Commercial real estate

Expenses incurred by the tenant

Include language in the lease that lists the expenditures that the renter is liable for, such as taxes, utilities, and insurance. It’s a good idea to make all of your renters sign a million-dollar liability coverage that covers everything that happens on the property.

Otherwise, if something goes wrong as a result of their operation and they aren’t adequately protected, the fault will fall back on you because the facility is yours. Before allowing your renters to occupy the property, make sure they have evidence of insurance.

Standard provisions cover tenant rights, landlord services, common spaces, and common area charges that you will incur and pass on to the renter. Other terms may relate to the property’s preservation, repairs, and upkeep, as well as the property’s surrender.