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Building Lease Agreement

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BUILDING LEASE AGREEMENT

This Building Lease Agreement ("Lease") is made and entered into as of by and between:

Parties

Property Identification

Lease Term

Commencement Date:    Expiration Date:    Term (months):

Rent and Financial Terms

Rent Payment Frequency:   Rent Due Day Each Period:

Use, Utilities, and Services

Permitted Use of Premises:

Utilities and Services (check party responsible):
Lessor pays electric    Lessee pays electric
Lessor pays water    Lessee pays water
(If additional utilities or specifics apply, describe below)

Maintenance, Repairs, and Alterations

Tenant shall, at Tenant's sole cost and expense, maintain the Premises in good order and condition except for reasonable wear and tear and structural repairs for which Lessor remains responsible as set forth below. Tenant is responsible for routine repairs and minor maintenance. Lessor remains responsible for structural repairs to roof, foundation and exterior load-bearing walls unless damage results from Tenant's negligence or misuse.

Security Improvements or trade fixtures installed by Tenant shall remain Tenant's property if removed upon lease termination and Tenant repairs damage caused by removal; otherwise, title shall vest in Lessor.

Insurance and Indemnity

Tenant shall obtain and maintain commercial general liability insurance with limits not less than and property insurance covering Tenant's personal property and improvements. Tenant shall name Lessor as an additional insured as to liability coverage and shall provide certificates evidencing such coverage upon request.

Tenant indemnifies and holds Lessor harmless from and against all claims, losses, liabilities and expenses (including reasonable attorney fees) arising from Tenant's use or occupancy of the Premises, except to the extent caused by Lessor's gross negligence or willful misconduct.

Taxes, Operating Expenses, and Common Area Charges

Tenant shall pay Tenant's proportionate share of real estate taxes, assessments, insurance premiums, utilities, maintenance and operating expenses for the Building as set forth in this Lease. Tenant's proportionate share shall be unless otherwise agreed in writing.

Environmental and Hazardous Materials

Tenant represents that Tenant will not store, use, dispose of or permit hazardous materials on the Premises except for ordinary office or trade-related supplies in compliance with all applicable environmental laws. Tenant shall promptly notify Lessor of any release or threatened release of hazardous materials and shall be solely responsible for remediation required by law resulting from Tenant's acts or omissions.

Disclosures

Lead-Based Paint (applies to buildings constructed before 1978):  Yes    No

Mold or Water Intrusion History:  Yes    No

Default and Remedies

An Event of Default by either party shall include failure to pay Rent when due, breach of any material covenant, abandonment of the Premises, or insolvency. Upon written notice specifying the default, the defaulting party shall have days to cure monetary defaults and a reasonable period for non-monetary defaults. If not timely cured, the non-defaulting party may pursue all remedies available at law or in equity including termination, possession, damages, and recovery of attorneys' fees and costs.

Casualty; Condemnation; Eminent Domain

If the Premises are damaged by casualty, Lessor shall repair damage reasonably promptly unless the damage is so extensive that repair is impracticable, in which case either party may terminate the Lease and appropriate adjustments to Rent shall be made. In the event of a taking by eminent domain, the Lease shall terminate as of the date title vests in the condemning authority and any award for the taking shall belong to Lessor; Tenant may pursue only its separate business losses from the condemning authority.

Assignment and Subletting

Tenant shall not assign, transfer or sublet the Premises or any interest herein without Lessor's prior written consent, which consent shall not be unreasonably withheld for qualified assignees. Any assignment or subletting without consent shall be void and constitute an immediate default.

Estoppel, Subordination, and Attornment

Tenant shall execute estoppel certificates upon request confirming the status of this Lease. This Lease shall be subject and subordinate to any mortgages, deeds of trust or other encumbrances affecting the Premises unless otherwise agreed in writing by Lessor and Tenant. Tenant shall attorn to any successor owner.

Notices

All notices under this Lease shall be in writing and delivered by personal service, nationally recognized overnight courier or certified mail, return receipt requested, to the addresses stated below or to such other address as either party may designate by notice.

Governing Law; Entire Agreement

This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises are located. This Lease, together with any exhibits or riders executed by the parties, constitutes the entire agreement between the parties and supersedes all prior negotiations, representations and agreements, whether written or oral. Any amendment must be in writing and signed by both parties.

Miscellaneous Provisions

If any provision of this Lease is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Time is of the essence with respect to Tenant's obligations to pay Rent and to perform material covenants. The parties agree that prevailing party in any litigation arising out of this Lease shall be entitled to recover reasonable attorneys' fees and costs.

Additional Terms and Attachments

Signatures

Lessor Printed Name:

By:

Date:

Lessee Printed Name:

By:

Date:

Enter text✕

What a Building Lease Agreement Covers

A Building Lease Agreement is a legally binding contract that sets the terms for renting an entire building or a defined portion of it. It identifies the landlord and tenant, the leased premises, lease term, rent and payment schedule, permitted uses, maintenance responsibilities, utilities allocation, insurance, default remedies, and procedures for amendment or assignment. The agreement creates enforceable obligations for both parties and should include signature blocks and dates; when executed electronically it may be enforceable under federal and state e-signature laws.

Why a Formal Lease Matters for Building Occupancy

A clear written lease allocates risk, fixes financial terms, and documents repair and access obligations. It reduces disputes by specifying rights and remedies, provides evidence for enforcement, and clarifies exit and renewal conditions.

Why a Formal Lease Matters for Building Occupancy

Who Typically Prepares and Signs This Agreement

Various parties rely on a building lease to govern occupancy and operations.

  • Property owners, landlord entities, and property managers handling leasing, collections, and compliance for commercial or mixed-use buildings.
  • Commercial tenants, business operators, and corporate lessees who need to document permitted uses, tenant improvements, and assignment restrictions.
  • Brokers, real estate attorneys, and facility managers who prepare, review, or negotiate lease provisions on behalf of clients.

Each signer should confirm authority to enter the lease and, where required, attach corporate resolutions or proof of signing authority.

Representative Signers and Their Roles

Property Manager —

A property manager will often prepare and execute leases on behalf of the landlord, manage tenant move-ins and repairs, and collect rent; ensure the manager has written authorization or a management agreement to sign leases if not the named owner.

Authorized Tenant Signer —

A tenant signatory (owner, officer, or authorized representative) binds the tenant entity to obligations such as rent, maintenance, and indemnity; verify corporate authorization and use exact legal entity names to avoid enforceability issues.

Step-by-Step: How to Complete the Building Lease Agreement

Follow these sequential steps to prepare a complete and enforceable lease document.

  • 01
    Gather party details: Confirm full legal names and signing authority for each party.
  • 02
    Define the premises: Describe the exact building area, address, and any excluded spaces.
  • 03
    Specify financial terms: Enter rent, deposit, payment schedule, and escalation clauses.
  • 04
    Sign and date: All parties sign and date; notarize if required or desired.

Typical Execution Flow for a Lease Document

A standard execution flow streamlines negotiation, signature, and recordkeeping for both parties.

  • Drafting: Landlord or counsel prepares draft lease.
  • Negotiation: Parties exchange revisions and agree terms.
  • Signing: Signatures collected (paper or electronic).
  • Recordkeeping: Final lease stored and distributed to parties.

Setting Up an Online Signing Workflow

Configure signing workflow to match the agreement's required sequence and authentication level.

Field Configuration
Signer Authentication Email verification plus optional SMS code or ID check.
Signing Order Choose sequential or parallel signing as required.
Reminders and Expiry Enable automatic reminders and set an expiration date.
Storage Destination Save executed copies to cloud storage or CMS.

Technical Requirements for Digital Completion

Ensure the signing platform supports required formats, authentication, and secure storage before e-signing.

  • Supported Formats: PDF and Word DOCX are standard for leases.
  • Integrations: Connect to CRM, NetSuite, Google Workspace, or Box for storage.
  • Authentication: Use email, SMS, or advanced verification where appropriate.

Verify audit trail capture (timestamps, IP, actions) and retention policies before finalizing signatures.

Essential Data Fields to Include

Tenant Name: Exact legal name
Landlord Name: Exact legal name
Property Address: Full street address
Lease Term: Start and end dates
Rent Amount: Dollar value
Security Deposit: Exact amount

Practical Tips for a Clear and Enforceable Lease

Adopt these best practices to reduce disputes and ease administration of the lease.

Use precise legal names
Confirm and use the tenant's and landlord's exact legal entity names as on formation and tax documents to ensure correct enforcement and payment routing. Avoid trade names or abbreviations unless accompanied by the legal entity.
Attach exhibits and plans
Include floor plans, permitted use descriptions, insurance requirements, and tenant improvement scopes as numbered exhibits to avoid ambiguity about what is included in the lease premises and which party is responsible for specific obligations.
Define maintenance and utilities
Specify which party handles repairs, common area maintenance, and utility payments; include measurement methods and billing cycles to minimize later disputes over responsibility or cost allocation.
Review local law provisions
Check state and local statutes on security deposits, rent control, habitability, and eviction procedures; where statutes impose notice or calculation rules, ensure lease terms comply to avoid unenforceability.

Common Preparation Mistakes to Avoid

  • Using informal or shorthand party names that do not match legal formation documents, which can hinder enforcement and banking transactions.
  • Leaving renewal, notice, or termination procedures vague, creating disputes about timing, acceptable notice methods, and renewal triggers.
  • Failing to attach exhibits such as scope of tenant improvements, resulting in disagreement over who must complete or pay for work.
  • Omitting security deposit handling and return procedures, which often results in statutory penalties and tenant disputes.

Potential Consequences of an Incorrect Lease

Eviction Costs: Court and attorney fees
Deposit Penalties: Statutory damages possible
Unenforceable Terms: Key clauses may be void
Breach Damages: Monetary liability
Regulatory Fines: Local code penalties
Operational Disruption: Loss of tenancy income

Core Clauses to Include in Every Building Lease

A complete lease includes clauses that define use, risk allocation, and the mechanics of tenancy; include these core sections consistently.

Premises

Precise description of the building area being leased, including square footage, address, suite numbers, parking rights, and any excluded spaces to prevent boundary disputes.

Term

Start and end dates, early possession or holdover rules, and renewal or extension options with clear notice and exercise windows to avoid unintended renewals.

Rent

Base rent, payment schedule, accepted payment methods, late fee mechanics, escalation formulas, and net vs. gross rent definitions for clarity on operating expense allocation.

Maintenance

Allocation of repair responsibilities, common area maintenance obligations, and standards for timely remediation to preserve the building and limit disputes over wear and tear.

Insurance

Required liability and property insurance types and limits, certificates of insurance, additional insured requirements, and waiver of subrogation clauses where applicable.

Default

Events of default, cure periods, remedies including termination, and recovery of damages to ensure predictable enforcement and mitigate litigation risk.

Pricing and Feature Snapshot for eSignature Providers

Compare common plan features and starting prices across leading eSignature providers. signNow is listed first for comparison consistency.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Examples of Lease Execution

These examples show how organizations used online signing and clear lease language to streamline occupancy and compliance.

Martin Properties (Founder)

Martin Properties standardized lease templates for rapid execution across portfolios

  • Used online signing to process and execute leases remotely
  • "I can process and execute all of these documents online with 100% compliance and built-in security," enabling faster occupancy and reduced administrative burden.

Optica Ventures (COO)

A venture-backed operator adopted a template-based lease to reduce negotiation time

  • Centralized approvals and signature routing reduced delays
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers," improving turnaround and transparency.

Common Questions About Building Lease Agreements

Answers to frequent questions about execution, amendments, e-signatures, and recordkeeping for building leases.


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