I built this generator to create comprehensive commercial lease agreements for office, retail, industrial, and mixed-use spaces. It supports NNN, gross, and modified-gross lease structures with automated rent calculations, escalation clauses, and tenant improvement provisions.
This generator produces a professional commercial lease agreement suitable for office, retail, industrial, and mixed-use properties. Commercial leases are significantly more complex than residential leases and typically involve longer terms, rent escalation provisions, operating expense pass-throughs, tenant improvement allowances, and detailed use restrictions.
The lease structure determines how operating expenses are allocated between landlord and tenant. A triple net (NNN) lease requires the tenant to pay base rent plus their proportionate share of property taxes, insurance, and common area maintenance. A gross lease bundles all expenses into a single rent payment. A modified gross lease splits expenses, typically with the tenant paying increases above a base-year amount. Each structure affects the total occupancy cost differently and should be evaluated based on your business needs and the local market.
When negotiating a commercial lease, focus on these critical areas: rent escalation (negotiate caps on annual increases), tenant improvement allowance (ensure adequate build-out funding), CAM cap (limit annual operating expense increases), personal guarantee scope (negotiate burn-off provisions), assignment and subletting rights (maintain flexibility), exclusivity clauses (prevent competing businesses in the same building), and renewal options (secure future occupancy at predictable rates).
Tenants should watch for: undefined or uncapped CAM charges, demolition clauses allowing early termination, co-tenancy requirements, radius restrictions limiting other locations, continuous operating covenants, and percentage rent provisions in retail leases. Having a real estate attorney review the lease before signing is strongly recommended for leases exceeding $100,000 in total value.