Lease

A lease is a legally binding contract between a property owner (landlord/lessor) and a tenant (lessee) that grants the tenant the right to occupy and use a commercial space for a defined period in exchange for regular rent payments. Commercial leases typically range from three to ten or more years and contain detailed terms governing both parties’ rights and responsibilities.

Key lease components include rent amount and escalations, term length, renewal options, permitted use, maintenance obligations, and build-out allowances. Unlike residential leases, commercial leases are highly negotiable, and the specific terms can significantly impact both the tenant’s operating costs and the landlord’s investment returns.