Learn more about Lease (Commercial Premises), or just get started
If you’re going to be leasing commercial property such as a shop, office or factory to a tenant (or lessee), you need to make sure that both the landlord and the tenant are clear about their respective rights and obligations. In other words, all the parties should fully understand the terms and conditions on which the tenant will be allowed to let and occupy the premises. A commercial lease is the comprehensive agreement used to set out all of these terms and conditions.
This agreement is for commercial properties (such as shops, offices or factories). If you want to lease a residential property such as a flat or house, then use our residential lease.
Our commercial lease is a full-length comprehensive agreement which includes detailed and customised clauses on all aspects of relevance to the use of the premises. Some of the aspects dealt with include the lease period, the amount and calculation of the rental, the manner in which it will be paid and the use to which the tenant may put the property. Any additional charges to be paid by the tenant will also be specified and the provision of security by the tenant is provided for. The agreement gives the landlord effective legal remedies if the tenant breaches its obligations under the agreement and also ensures that there is no uncertainty in relation to who will be responsible for the maintenenace of the premises.
In other words, the agreement provides you with carefully constructed terms covering all aspects of the unique letting transaction. This minimises the potential for future disputes and provides appropriate legal protection of genuine relevance to your transaction. This agreement is suitable for use by letting agents as well as by individuals.
Full details of the contract:
The drafting process utilized for the commercial lease agreement includes the following capabilities:
All types of commercial buildings can be accommodated, including entire single or multi-storey buildings; as well as shops, units, floors or blocks situated in larger retail, office or industrial properties.
Facilities accessory to the leased premises are also catered for, such as parking bays, exclusive use areas, public areas and loading zones.
Commercial uses that may be specified in the agreement include office space, supermarkets, restaurants, retail outlets, factories, industrial facilities and others. Any exclusive rights to offer a particular service or brand within a commercial complex can also be accommodated.
The agreement caters for a single tenant or for two tenants who accept joint and several liability under the lease.
Full details of every party signing the commercial lease agreement are inserted, including full names, identity or passport numbers, addresses, contact numbers and email.
Corporate entities are also catered for, including private and public companies, close corporations, trusts, partnerships, sole proprietorships and registered or unregistered voluntary associations.
If corporate entities are included, then the entity’s representative is described fully and protection against insolvency is catered for.
Rental can be calculated as a fixed sum or by square meter. Provision is made for rental escalations to take account of inflation or increased property charges – in both the initial period and any renewal periods.
If desired, comprehensive clauses dealing with the payment of turnover rental can be included in the agreement.
Leases that are subject to a head-lease or other limitations are catered for.
Any additional charges payable by the tenant are addressed, including municipal charges like electricity and water, levies or pro rata contributions for services rendered to public areas. Marketing fund fees and managing agent’s fees (if applicable) can also be included.
Measures securing the landlord include the provision of a deposit, the protection of the landlord’s tacit hypothec and, if requested: deeds of suretyship, financial guarantees, indemnities and special or general notarial bonds.
The manner in which rental is to be paid is canvassed in full, including the due date(s) for payment, the method and place of payment and the administrative charges and penalty interest payable in the event of late payment.
The lease period is defined in detail with reference to the commencement date and term of the lease (whether fixed or indefinite), renewal periods, early occupation for shop-fitting, and the suspension of the lease period in the event of renovations and/or the partial destruction of the premises.
The parties’ residual obligations relating to maintenance, management of public areas, marketing, trading hours, alterations and fixtures, access to the premises, subletting and transfers of ownership, warranties, cession, and more, are all dealt with in detail.
Measures to protect the landlord in the event of a breach include a comprehensive definition of breach, issues of jurisdiction, certificates of indebtedness, joint and several liability, legal costs, service and arbitration (if requested).
The contents and terms of each commercial lease agreement are dependent on the responses given during the online interview process. As a result, the above list constitutes a broad overview of the issues typically addressed in the document and is not intended to be comprehensive.