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Company News

Should You Always Use the Same Lease Template?

Taj Adhav
Taj Adhav
August 30, 2018
lease template

A Commercial Lease is a legally binding agreement between a commercial property owner and a business tenant. It might include details such as what kind of business is allowed to operate in the space, where customers and employees can park, and even hours of operation. Look at enough commercial real estate leases, and you’ll notice there is no “normal” from one document to another. That’s why we don’t recommend using the same lease template for every tenant.

They might all contain the same basic clauses, but the detail and complexity can vary dramatically depending on the tenant’s business and type of space.

An owner who operates industrial space ranging from 2,000 to 10,000 square feet can probably use the same lease for all tenants, and most of them will accept it as-is without any revisions. Retail space requires a different type of contract, which might include clauses about exclusive use rights, “go-dark” rights, and percentage rent. And office-space leases often contain more detail about tenant improvements, because many companies want updated flooring, wall coverings, and lighting.

simplified lease management

Lease duration also affects the language of the contract and whose document is used. For example, a national tenant negotiating a 10-year lease will have its attorney draft the agreement, which will then be reviewed by the landlord’s attorney – so the final version might be a hybrid of input from both sides.

However, if you are renting commercial space to local, single-location businesses, then you can probably have your attorney draft a fill-in-the-blanks lease contract that will work for most tenants.

Tenants come in a lot of different flavors, so it’s not practical to use the same lease template for each one. But once a lease is agreed upon and signed, then you’ll want to use lease management software to stay on top of it. Check out a demo of Leasecake to see if it’s right for you.


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