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a commercial lease agreement is a contract to rent an office or industrial space between a landlord and a tenant commercial leases are generally longer than residential leases a lease term is typically established between three and five years and is common for the tenant to have options to renew the contract types of commercial lease agreements a commercial lease agreement may or may not allocate expenses for the occupancy and operation of the premises generally a landlord expects some portion of these costs to be paid for by the tenant there are two main types of commercial lease agreements a gross lease in a gross lease expenses are included in the tenants base rent payment consequently the tenant pays no additional rent beyond the base rent a net lease is where the tenant pays the monthly amount written in their lease along with the real estate taxes insurance and maintenance of the property essential terms in a commercial lease agreement leases vary based on state and local laws c
