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Commercial Lease Agreement

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COMMERCIAL LEASE AGREEMENT

THIS LEASE (this "Lease") dated this ________ day of ________________, ________

BETWEEN:

______________________ of _________________________________
Telephone: ______________________  
(the "Landlord")

OF THE FIRST PART


- AND -

______________________ of _________________________________
Telephone: ______________________
(the "Tenant")

OF THE SECOND PART

IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease (the "Parties") agree as follows:

  1. Definitions
  2. When used in this Lease, the following expressions will have the meanings indicated:
    1. "Additional Rent" means all amounts payable by the Tenant under this Lease except Base Rent, whether or not specifically designated as Additional Rent elsewhere in this Lease;
    2. "Building" means all buildings, improvements, equipment, fixtures, property and facilities from time to time located at ______________________________, as from time to time altered, expanded or reduced by the Landlord in its sole discretion;
    3. "Common Areas and Facilities" mean:
      1. those portions of the Building areas, buildings, improvements, facilities, utilities, equipment and installations in or forming part of the Building which from time to time are not designated or intended by the Landlord to be leased to tenants of the Building including, without limitation, exterior weather walls, roofs, entrances and exits, parking areas, driveways, loading docks and area, storage, mechanical and electrical rooms, areas above and below leasable premises and not included within leasable premises, security and alarm equipment, grassed and landscaped areas, retaining walls and maintenance, cleaning and operating equipment serving the Building; and
      2. those lands, areas, buildings, improvements, facilities, utilities, equipment and installations which serve or are for the useful benefit of the Building, the tenants of the Building or the Landlord and those having business with them, whether or not located within, adjacent to or near the Building and which are designated from time to time by the Landlord as part of the Common Areas and Facilities;
    4. "Leasable Area" means with respect to any rentable premises, the area expressed in square feet of all floor space including floor space of mezzanines, if any, determined, calculated and certified by the Landlord and measured from the exterior face of all exterior walls, doors and windows, including walls, doors and windows separating the rentable premises from enclosed Common Areas and Facilities, if any, and from the center line of all interior walls separating the rentable premises from adjoining rentable premises. There will be no deduction or exclusion for any space occupied by or used for columns, ducts or other structural elements;
    5. "Premises" means the office space at ______________________________;
    6. "Rent" means the total of Base Rent and Additional Rent.
  3. Intent of Lease
  4. It is the intent of this Lease and agreed to by the Parties to this Lease that rent for this Lease will be on a gross rent basis meaning the Tenant will pay the Base Rent and any Additional Rent and the Landlord will be responsible for all other service charges related to the Premises and the operation of the Building save as specifically provided in this Lease to the contrary.
  5. Leased Premises
  6. The Landlord agrees to rent to the Tenant the office space municipally described as ______________________________ (the "Premises").

    The Premises will be used for only the following permitted use (the "Permitted Use"):
    ____________________________________________________________________________________________________________________________________________________________________
    The remainder of this document will be available when you have purchased a license.
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Last updated February 21, 2023

Commercial Lease Agreements in Texas

With somewhat lax tenancy laws, landlords often consider Texas to be a friendly state for renting commercial property. 

In fact, much of the governing authority over a commercial tenancy will come from its Lease Agreement. For example, if the parties argue over interrupted utilities or a tenant getting locked out, the lease takes precedence over the law. 

That being said, Commercial Lease Agreements are open to negotiation. Commercial tenants should review their contracts and advocate for terms that suit their business. In the end, a fair contract benefits both parties: the landlord helps secure a respectful tenant, while the tenant gets a place to run their business.

LawDepot’s template contains all the information you’ll need to create a standard Commercial Lease Agreement in Texas. You can further customize the document by adding, deleting, or editing terms as needed.

Screening tenants? Use an application form to get the right details.
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What are commercial property rights in Texas?

Generally, commercial tenancies in Texas must comply with certain chapters of the Texas Property Code, including Chapter 93 (Commercial Tenancies). Some county or city ordinances may also apply.

Here’s a brief summary of the landlord/tenant rights and obligations that the code outlines for commercial properties:

1. Preventing access to the property

Landlord Tenant

Right: Landlord may prevent a tenant from entering the property (i.e., lock them out) without following judicial processes in certain situations (e.g., unpaid rent).

Requirement: If changing a lock because of a tenant’s unpaid rent, the landlord must place a notice with instructions for obtaining a new key. This notice must contain certain details, as well as meet other legal requirements for delivery.

Right: If the landlord locked a tenant out because of unpaid rent and fails to give the proper legal notice, the tenant may have access to legal remedies (e.g., reclaiming costs or possession of the property).

2. Acceptable uses/controls of the property

Landlord Tenant

Right: Landlord may presume a tenant has abandoned the premises if they remove a substantial amount of their property. In this case, the landlord may seize any remaining unclaimed property. 

Requirement: The landlord must contact the tenant about claiming the property and give them 60 days to do so before disposing of it.

Right: Landlord cannot interrupt utility services that a tenant pays for—unless it’s for legitimate reasons (e.g., emergency).

Right: Landlord cannot remove certain fixtures from the property (e.g., door or window mechanisms) unless it’s for repair. If so, it must be done promptly.

3. Security deposits

Landlord Tenant

Right: Landlord may retain a security deposit and deduct from it to cover charges that the tenant is liable for (e.g., unpaid rent or property damage beyond normal wear and tear.)

Requirement: The landlord must give any refundable amounts from the deposit to the tenant within 60 days of the end of the lease. They must record any deductions on an itemized receipt for the tenant (unless the tenant owes rent or there’s no dispute over the amount of rent owed).

Requirement: The landlord must keep accurate records of all security deposits. They must also delegate the responsibility of the deposit if they cease to be the property owner (e.g., through sale, assignment, etc.).

Requirement: Wrongfully withholding the security deposit will result in legal consequences (e.g., paying the tenant’s legal fees, forfeiting the right to keep any portion of the deposit, etc.).

Right: The tenant’s claim to their security deposit takes priority over the claim of any creditor or bankrupt trustee that may target the landlord.

Requirement: To enforce the right to the return of their security deposit, the tenant must provide a forwarding address to the landlord. (Failing to do so doesn’t mean the tenant forfeits this right, but the landlord isn’t obligated to reach out first.)

Requirement: The tenant cannot withhold last month’s rent with the idea that their security deposit will cover it. If they do, they’re liable to pay three times the rent owed.

4. Charges and rights to terminate

Landlord Tenant

Right: The landlord may terminate the tenancy early if the tenant uses the premises (and is convicted) for public indecency or prostitution. In this case, they don’t need to give any notice other than the notice to vacate, which must give at least three days' notice.

Right: The landlord may terminate the tenancy early for unpaid rent. In this case, the Lease Agreement should address (or waive) the notice period for termination.  

Requirement: Landlord must give appropriate notice to end the tenancy for reasons unrelated to those outlined in the Texas Property Code.

Right: The landlord may charge the tenant for expenses other than rent or property damage only if the charge is included in the Lease Agreement (or in a Lease Amendment).

Right: The tenant may terminate the lease early if the landlord (or their agent) violates certain sections of the Texas Property Code. The right to terminate may also be covered in the Lease Agreement.

Requirement: Tenant must give appropriate notice to end the tenancy legally (although there may be some other legal reasons to break the lease.)

What should a Commercial Lease in Texas include?

LawDepot’s Commercial Lease template prompts you to include the details needed for a standard contract. 

To create your custom document, be prepared to address the following information:

  1. Property and party details, including names and addresses
  2. General lease terms, such as the length and type of lease
  3. Rent terms, such as payment frequency and rent increases
  4. Security deposit and other expenses (e.g., utilities or insurance)
  5. Terms unique to the business tenant

In addition to these general terms, the landlord might also address whether or not the tenant can assign or sublease the property. Otherwise, Texas law prohibits a tenant from subletting or assigning the property without the landlord’s permission.

It’s also important to include any terms on the frequency or amount of rent increases in the Lease Agreement. Without rent control laws, commercial landlords in Texas are typically free to increase the rent as they see fit. That being said, commercial tenants are also free to negotiate rent terms.

Finally, consider any other unique terms that might apply to the contract—like requiring an inspection or offering a signing bonus.

Do commercial leases need to be notarized in Texas?

No, Texas law does not require you to notarize your Commercial Lease Agreement for it to be valid. Generally, a valid contract must meet certain legal requirements (such as mutual consent to enter the agreement).

Still, notarizing your document helps to authenticate each party’s signature.

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