What is the difference between a gross lease and a triple-net lease?

In a gross lease, the landlord pays property taxes, insurance, and maintenance — the tenant pays a single rent amount. In a triple-net (NNN) lease, the tenant pays base rent plus their share of property taxes, insurance, and CAM charges. Modified gross leases split these costs. Triple-net leases are common for retail and industrial spaces; gross leases for office spaces.

How long should a commercial lease term be?

Commercial lease terms typically range from 3 to 10 years, with options to renew. Shorter terms (3–5 years) offer flexibility but may not justify significant tenant improvements. Longer terms (7–10 years) provide stability and often come with more favorable rent terms and larger TI allowances. Many commercial leases include renewal options at predetermined rates.

What are CAM charges and how are they calculated?

Common Area Maintenance (CAM) charges cover the costs of maintaining shared spaces: lobbies, parking lots, landscaping, security, and building systems. CAM is typically calculated as the tenant's proportionate share of total CAM costs, based on their percentage of the building's leasable square footage. Good lease agreements cap annual CAM increases to protect tenants from unexpected costs.

Lease Agreement

Lease Agreement for Commercial Properties

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Commercial leases are fundamentally different from residential leases. They involve longer terms, more complex rent structures, tenant improvements, and use restrictions that directly impact business operations. A well-drafted commercial lease protects both the landlord's property investment and the tenant's ability to operate profitably.

Key considerations in commercial leases include the rent structure (gross, net, or triple-net), Common Area Maintenance (CAM) charges, tenant improvement allowances, exclusivity clauses, and assignment or subletting rights. Each of these can significantly impact the total cost of occupancy and the flexibility of the tenancy.

contract.diy generates commercial lease agreements with provisions specific to your property type — retail, office, industrial, or mixed-use — each tailored to your jurisdiction's commercial tenancy laws.

What's included

Key provisions tailored for commercial properties — not generic boilerplate.

Rent structure and escalation

Defines base rent, percentage rent (retail), CAM charges, and annual escalation formulas (CPI or fixed percentage).

Tenant improvements and build-out

Covers tenant improvement allowances (TIA), construction approval processes, and restoration obligations at lease end.

Use restrictions and exclusivity

Specifies permitted uses, prohibited activities, and whether the tenant has exclusive rights to their business category in the property.

Assignment and subletting

Establishes whether the tenant can assign the lease or sublet, and under what conditions landlord approval is required.

When you need this contract

When leasing retail, office, industrial, or warehouse space to a business tenant
Before signing a multi-year commercial tenancy for any property type
When a tenant requests modifications to a standard commercial lease
Before leasing space in a multi-tenant commercial property

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Every clause is tailored for commercial properties — not a generic template you have to adapt yourself.

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Frequently asked questions

What is the difference between a gross lease and a triple-net lease?: In a gross lease, the landlord pays property taxes, insurance, and maintenance — the tenant pays a single rent amount. In a triple-net (NNN) lease, the tenant pays base rent plus their share of property taxes, insurance, and CAM charges. Modified gross leases split these costs. Triple-net leases are common for retail and industrial spaces; gross leases for office spaces.
How long should a commercial lease term be?: Commercial lease terms typically range from 3 to 10 years, with options to renew. Shorter terms (3–5 years) offer flexibility but may not justify significant tenant improvements. Longer terms (7–10 years) provide stability and often come with more favorable rent terms and larger TI allowances. Many commercial leases include renewal options at predetermined rates.
What are CAM charges and how are they calculated?: Common Area Maintenance (CAM) charges cover the costs of maintaining shared spaces: lobbies, parking lots, landscaping, security, and building systems. CAM is typically calculated as the tenant's proportionate share of total CAM costs, based on their percentage of the building's leasable square footage. Good lease agreements cap annual CAM increases to protect tenants from unexpected costs.

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contract.diy is a document preparation service, not a law firm. Generated contracts are templates for informational purposes and do not constitute legal advice. We recommend having any contract reviewed by a qualified attorney before signing.