A commercial lease agreement contains several key clauses that set out the rights and responsibilities of both the landlord and the tenant. Some of the most common clauses include: 


  • Premises Clause: Defines the property being leased and what spaces are included, such as common areas, parking spaces, etc. 


  • Term of Lease: Specifies the duration of the lease, including the start and end dates, and any options for renewal. 


  • Rent Clause: Sets out the amount of rent, when it is due, and any provisions for rent increases over the term of the lease. 


  • Security Deposit: Details the amount of the security deposit required, under what circumstances it can be used, and when and how it will be returned. 


  • Use of Premises: Describes what the tenant can use the property for, which can be as specific as a type of business or as general as any legal commercial use. 


  • Maintenance and Repairs: Describes who is responsible for maintaining and repairing various parts of the property, such as the interior, exterior, HVAC systems, etc. 


  • Insurance: Defines the types and amounts of insurance that both the tenant and landlord must carry, such as liability insurance, property insurance, etc. 


  • Utilities: Specifies who is responsible for various utilities like water, electricity, gas, and waste disposal. 


  • Improvements and Alterations: Governs whether the tenant can make improvements or alterations to the property, and if so, under what conditions. 


  • Default and Remedies: Sets out what constitutes a default on the lease, such as non-payment of rent, and what remedies are available to the non-defaulting party. 


  • Assignment and Subletting: Determines whether the tenant can assign the lease or sublet the property to another party. 


  • Termination: Describes under what conditions the lease can be terminated early by either party, and what penalties may apply. 


  • Force Majeure: Describes what will happen if circumstances beyond the control of either party (like natural disasters) prevent them from fulfilling their obligations under the lease. 


  • Dispute Resolution: Defines the process for resolving any disputes that may arise, such as mediation or arbitration. 


These clauses are just a few of the many that may be included in a commercial lease. The specific clauses can vary depending on the property, the parties, and the specific nature of the business use. 

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