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what is a commercial tenant a commercial tenant is a renter who uses property or real estate for business or commercial purposes this is different from a residential tenant who rents a place to live a commercial tenant rent a property which may be an office space mall or restaurant this is in contrast to a residential tenant who primarily rents apartments and homes because a commercial tenant is often a business or an organization they are often seen as being more savvy and sophisticated than a residential tenant in the eyes of the law therefore they are often afforded fewer legal protections and rights than a residential tenant in california the laws that govern commercial leases permit a commercial tenant to negotiate the terms of the lease with a landlord this is allowed because california commercial lease law is based on contract principles as well as the notion of equal bargaining power when renting to a commercial tenant when can a commercial tenant be evicted since commercial te