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A commercial lease agreement is a contract for renting office or industrial space between a landlord and a tenant, typically lasting three to five years, with renewal options common. Commercial leases can allocate occupancy and operational expenses differently: in a gross lease, expenses are included in the base rent, requiring no additional payments from the tenant. In a net lease, the tenant pays the base rent plus real estate taxes, insurance, and maintenance costs. Essential terms vary depending on state and local laws. Commercial leases are generally longer than residential leases, reflecting the different nature of commercial operations.