Prompt LibraryReal EstateCommercial Lease Agreement

Commercial Lease Agreement

Generate a comprehensive commercial lease agreement covering lease structure, rent escalation, CAM charges, permitted use, tenant improvements, and renewal options.

Used 167 times
Expert Verified
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Created byOguz Serdar
CM
Reviewed byCuneyt Mertayak

Prompt Template

You are an experienced commercial real estate attorney. I need a comprehensive commercial lease agreement for the following arrangement.

The landlord is [LANDLORD_NAME] with a principal business address of [LANDLORD_ADDRESS]. The tenant is [TENANT_NAME]. The property is a [PROPERTY_TYPE:select:Retail storefront,Office suite,Industrial warehouse,Flex space or light industrial,Restaurant or food service space,Medical or dental office,Mixed-use commercial unit,Entire commercial building] located at [PROPERTY_ADDRESS].

The lease structure is [LEASE_TYPE:select:Triple net (NNN),Modified gross,Full-service gross,Double net (NN),Percentage lease,Absolute net]. The lease begins on [LEASE_START_DATE] with a base rent of [BASE_RENT] dollars per month and annual escalation of 3 percent or CPI adjustment. The security deposit equals two months of base rent.

The permitted use is [PERMITTED_USE]. The tenant improvement arrangement is [IMPROVEMENTS:select:Landlord provides a tenant improvement allowance,Tenant handles all improvements at tenant expense with landlord approval,Premises delivered as-is,Landlord completes specified improvements before delivery,Build-to-suit by landlord,Rent abatement period in lieu of improvement allowance].

Generate a complete commercial lease agreement with the following sections: recitals and parties identification, premises description with square footage and floor plan exhibit reference, lease term with commencement date and renewal options requiring 90 days written notice, rent provisions including base rent schedule and escalation method and late payment penalties.

Include a CAM charges section covering expense calculation based on the tenant's proportionate share, annual reconciliation, audit rights, and what expenses are included. Add a security deposit section, permitted use restrictions with zoning and compliance requirements, and a tenant improvements section covering approval process and ownership upon termination.

Draft maintenance provisions dividing responsibilities between landlord (structural, roof, building systems) and tenant (interior, HVAC, fixtures). Include insurance requirements with commercial general liability minimums of one million dollars per occurrence and additional insured language.

Add a default and remedies section with 10-day rent cure and 30-day general cure periods, landlord remedies including termination and rent acceleration, and assignment and subletting provisions requiring landlord consent.

Include subordination non-disturbance and attornment, estoppel certificates, force majeure, holdover at 150 percent of final rent, quiet enjoyment, environmental compliance, and signage rights. Add standard legal provisions for governing law, severability, notices, and entire agreement.

Close with signature blocks for both parties including entity name, authorized signatory, title, and date. Attach exhibit pages for the floor plan and building rules.

End with a disclaimer that this template is for informational purposes only and does not constitute legal advice. Commercial lease terms, landlord-tenant regulations, and allowable provisions vary by state and locality. Both parties should consult a licensed attorney experienced in commercial real estate before signing.

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About Commercial Lease Agreement

Negotiating a commercial lease is nothing like signing a residential rental agreement. The lease structure alone, whether triple net, gross, or modified gross, determines who pays for property taxes, insurance, and maintenance. Get the allocation wrong and a business can face thousands in unexpected costs every year. CAM charges, rent escalation clauses, and tenant improvement terms all require careful drafting that protects both the landlord's investment and the tenant's ability to operate.

This commercial lease agreement prompt generates a full lease document tailored to your deal. Select the [LEASE_TYPE] to set the expense allocation framework, choose the [PROPERTY_TYPE] for your space, and enter [BASE_RENT] along with [PERMITTED_USE] to define the financial and operational terms. The output covers everything from rent escalation schedules and CAM reconciliation to default remedies and assignment restrictions.

If you need a property management agreement for handling the ongoing landlord-tenant relationship after signing, that prompt handles management fees, maintenance authority, and reporting. For tenants considering a partial space transfer, the sublease agreement generator addresses the three-party dynamics of commercial subleases. Open this prompt in the Dock Editor to fill in your variables and produce a ready-to-review lease draft.

How to Use Commercial Lease Agreement

1

Copy the prompt and choose your lease structure

Paste this prompt into ChatGPT, Claude, Gemini, or the Dock Editor. Select [LEASE_TYPE] to define how operating expenses are split. Triple net (NNN) passes taxes, insurance, and CAM to the tenant. Full-service gross bundles everything into rent. Modified gross splits costs between the parties.

2

Enter property and party details

Fill in [LANDLORD_NAME], [LANDLORD_ADDRESS], [TENANT_NAME], and [PROPERTY_ADDRESS]. Choose the [PROPERTY_TYPE] that matches your space. The AI uses these inputs to set the correct legal framing, premises description, and party identification sections.

3

Set the financial and operational terms

Enter [BASE_RENT] for the monthly amount and [LEASE_START_DATE] for the commencement date. Describe the tenant's business in [PERMITTED_USE] so the lease restricts the space to that operation. Select [IMPROVEMENTS] to define whether the landlord provides a build-out allowance or the tenant handles construction.

4

Review the generated lease and customize details

Read through every section, paying close attention to the CAM charges breakdown, escalation percentages, default remedies, and insurance minimums. Adjust any dollar amounts or timelines the AI set as defaults. Have a commercial real estate attorney review the final document before either party signs.

Who Uses Commercial Lease Agreement

Commercial Landlords

Draft a professional lease for a new tenant that clearly allocates operating expenses, defines CAM charges, sets rent escalation terms, and includes strong default and remedy provisions to protect property value and income.

Small Business Owners

Generate a complete lease document to review before signing. Understand exactly what you are agreeing to pay beyond base rent, what improvements you can make, and what happens if you need to assign or sublet the space.

Commercial Real Estate Brokers

Produce a first-draft lease for client transactions across retail, office, and industrial deals. Adjust the [LEASE_TYPE] and [PROPERTY_TYPE] for each deal and let the AI handle the standard clause language while you focus on negotiation strategy.

Property Managers

Create consistent lease documents across a portfolio of commercial properties. Standardize CAM calculation methods, insurance requirements, and maintenance responsibilities while adjusting only the tenant-specific and property-specific variables for each new lease.

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