A commercial lease is an agreement between a landlord and tenant for lease of commercial property, such as office, retail or warehouse space. Commercial leases are usually for longer terms than residential leases, because a business tenant can invest a significant amount of money to develop the space and the tenant would like to realize a return on its investment.
A commercial lease will address terms such as rent, term, payment of utilities and others expenses, and use of the property. A triple net lease requires the tenant to pay, in addition to rent, expenses such as real estate taxes, insurance, maintenance, repairs, utilities and other expenses.
In some eases, landlords agree to pay for some of the improvements to a space to entice tenants to rent property. Any improvements become the property of the landlord at the end of the lease.
A residential lease is an agreement between a landlord and tenant to rent a house or apartment. Residential leases are usually written documents, but they can be verbal agreements as well. A lease with a term of more than one year must be in writing.