If you are a small business owner, you have probably thought about starting your own since childhood. However, it can be scary and can take a lot of work. It’s challenging to think of everything you need to run it properly.

One thing you should consider before signing any legal document is standard clauses. If you are aware of them, you can avoid unwanted surprises.

Let’s explore what these clauses are used in a commercial lease agreement.

Insurance Clause


This clause outlines any necessary insurance taken out by the tenant. This is to protect both the tenant and the landlord from any potential loss or damage that should be done so. The tenant must provide proof that the property is insured for public liability.

It is also essential for the tenant to keep construction insurance for any work that may be conducted on the property. This clause also outlines that the tenant should cover the insurance cost unless indicated otherwise by the landlord.

Use Clause

The use clause also outlines any further restrictions on how the space can be used. It does not allow any specific types of business or activities. It can also restrict operating hours or limit the number of customers allowed to use the property.

The use clause can also restrict the equipment used on the property. This clause is essential when determining if the tenant abides by a lease term.

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Renewal Clause


This clause states the terms of the agreement for the renewal or extension of the lease for a set number of years. The renewal clause typically defines the amount of notice required to be given by the tenant in advance of the end of the lease. The parties may also negotiate to allow the tenant to upgrade the premises or the length of any future lease period.

Improvements and Alterations

It allows the tenant to make necessary modifications and enhancements to the property. For example, a tenant may want to add office space, install a new air conditioning system, or make other improvements or alterations.

The landlord and tenant must agree upon all improvements, including how the tenant would pay for them. The tenant must maintain suitable conditions and how any future enhancements or alterations will be handled. The landlord would typically specify any existing improvements.

The tenant may be required to use a particular contractor for any changes. It may need to adhere to the landlord’s regulations regarding any improvements or alterations.

Description of Premises

Lease Agreements

This clause outlines all the details of the space the tenant will rent. This typically includes the address, size, use, and condition of the premises.

Since these details are essential to the tenant, they should be accurate and complete. Furthermore, the lessee can reference exhibits or attachments to include a complete description of the premises.

Knowing More About Commercial Lease Agreements

In conclusion, commercial lease agreements are integral to renting out any retail space. Care should be taken to ensure that all necessary clauses are included to give both the landlord and the tenant clarity on all the agreement terms. To confirm a smooth rental process, contact a real estate lawyer today.

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