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A commercial lease agreement is a contract for renting office or industrial space between a landlord and tenant, typically lasting three to five years, with options for renewal. These leases are often longer than residential ones. There are two main types of commercial lease agreements: a gross lease, where the tenant's base rent includes all expenses, and a net lease, where the tenant pays additional costs such as real estate taxes, insurance, and maintenance on top of their rent. The allocation of expenses may vary, and landlords usually expect tenants to cover some operational costs. Terms in commercial leases can differ based on state and local laws.