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A commercial lease agreement is a contract between a landlord and a tenant for renting office or industrial space, typically lasting three to five years, with options for renewal. These leases can allocate expenses related to occupancy and operation, which are generally expected to be partially covered by the tenant. There are two main types of commercial leases: a gross lease, where expenses are included in the base rent, meaning the tenant pays no additional fees, and a net lease, where the tenant additionally pays real estate taxes, insurance, and maintenance costs. Lease terms can vary based on local and state regulations.