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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 between three to five years, often with renewal options. Commercial leases generally have different expense structures; they may allocate some costs of occupancy to the tenant. The two main types of commercial leases are: a gross lease, where expenses are included in the base rent with no additional payments, and a net lease, where tenants pay the agreed rent plus real estate taxes, insurance, and maintenance costs. Essential terms of these agreements can vary based on state and local laws.