What’s a commercial lease?
A business property lease—otherwise known as a commercial lease—is a contract that legally binds a business owner and the owner of the property. The said contract is usually more complex than residential leases because the leasing documents for a business property lease requires heavy customisation depending on the property involved.
In light of this, the leasing terms and conditions must be reviewed with a sharp eye to make sure that both the business owner and the owner of the property benefit fairly from the leasing document.
A commercial lease grants the lessee with the right to exclusive possession and the right to use the property to run a business. Moreover, there are several kinds of leases available to businesses, usually depending on their classification—be it retail or commercial.
With that said, the two classifications have many things in common while also having many legal differences to consider as well. There will be different requirements with regard to the length of the lease and the fees to be paid thereafter.
The criteria that will be taken into account, documented, and negotiated between the property owner and business owner are as follows: