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A commercial lease agreement is a contract for renting office or industrial space between a landlord and tenant, usually lasting three to five years, with options for renewal. Expenses for occupancy and operation can be allocated differently. There are two main types of commercial leases: a gross lease, where all expenses are included in the base rent, meaning the tenant pays no extra rent; and a net lease, where the tenant pays the base rent plus real estate taxes, insurance, and maintenance costs. The terms of commercial leases vary according to state and local laws.