California Commercial Lease Agreement Template

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The California commercial lease agreement is a document used to lease a property to a tenant requiring a retail, office, or industrial space. Often a landlord will not see rent payments until the business in question has begun generating sufficient income. For this reason, it is wise of the landlord to research the business prior to drafting a lease agreement. In general, there are three types of commercial lease agreements used when entering into a landlord-tenant relationship; each has been described below.

Gross – The preferred situation for the tenant, as the tenant is only required to pay a monthly fee, and all other maintenance and tax bills including repairs are taken care of by the landlord.

Modified Gross – This form of commercial lease agreement is in-between Gross and Triple Net (NNN), as the landlord and tenant will divide the costs amongst them. Simply put, both the tenant and landlord will share a part of the maintenance and tax costs.

Triple Net (NNN) – The best situation for the landlord, as the tenant is responsible for paying all maintenance, tax, utility, and repair costs to the property.

Disclosure – The energy efficiency disclosure statement must be attached to all commercial contracts.


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