Establishing secure connection…Loading editor…Preparing document…

California Commercial Lease

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

CALIFORNIA COMMERCIAL LEASE

This lease agreement is entered into on this, the day of , 20 , by and between:

, (hereinafter called “LESSOR”), whether one or more, and

, (hereinafter called “LESSEE”), whether one or more.

For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, LESSOR and LESSEE do hereby covenant, contract and agree as follows:

1. PREMISES AND TERM: LESSOR hereby leases to LESSEE for the term commencing on the day of , 20 , and ending on the day of , 20 , the following described premises in its present condition, located in County, California, at the following address:

LESSEE also has a right for the benefit of LESSEE, its employees, agents and invitees for access to and from the Leased Premises through the building and over property of LESSOR adjoining the Leased Premises, and to use those parts of the building designated by LESSOR for use by LESSEE, including but not limited to toilet rooms, elevators and unrestricted parking areas, if any.

2. RENEWAL: LESSEE and LESSOR may agree to extend or renew the lease, with any agreed modifications, in a separate, signed document.

3. RENT: The LESSEE covenants to pay to LESSOR as Rent the sum of Dollars ($ ) per month, in advance without demand on or before the first day of each month at the office of the LESSOR at the following address or P.O. Box:

If applicable, the Rent for the month of , which is the first month of this lease shall be paid in the amount of Dollars ($ ), which amount is the prorated rent based upon the date this lease commences.

The LESSEE shall pay the Rent when due and payable, without any setoff, deduction or prior demand whatsoever. Any payment by LESSEE or acceptance by LESSOR of a lesser amount than is due from LESSEE to LESSOR shall be treated as payment on account.

4. LATE CHARGES: LESSEE shall pay a late charge in the amount of percent ( %) of the outstanding delinquent balance for any payment of the rent not made within days after the due date to cover the extra expense involved in handling late payments, but not more than dollars for any one month.

5. UTILITIES: LESSEE shall pay all charges for utilities for the PREMISES except for the following listed (if any), which shall be paid by LESSOR:

6. CONDITION OF PREMISES; USE OF PREMISES: LESSEE acknowledges that LESSEE has examined and knows the condition of the Leased Premises, and has received the same in good order and repair, and agrees to use these Leased Premises only for .

LESSEE shall pay for any expense, damage or repair occasioned by the stopping of waste pipes or overflow from fixtures, and for any damage to the interior of the Leased Premises or the fixtures therein.

All repairs, except those specific repairs set forth below which are the responsibility of the LESSOR, shall be made by the LESSEE at its own expense.

The LESSOR shall be responsible for making only the following repairs [check those that apply]:

sprinkler system

heating, ventilating or air-conditioning system

structural repairs to exterior walls, structural columns and structural floors

the roof over the Premises

Other:

Other:

Other:

7. FIXTURES AND TRADE FIXTURES: LESSEE shall make no changes, improvements, alterations, or additions to the Leased Premises unless first approved in writing by LESSOR and otherwise permitted under this lease.

8. SECURITY DEPOSIT: The LESSEE, contemporaneously with the first Rent installment, agrees to deposit with the LESSOR Dollars ($ ) which sum shall be held by the LESSOR as security for the full faith and performance by LESSEE of all of the terms, covenants and conditions of this lease.

The security deposit shall be held, applied to damages or rent and returned to LESSEE all in accordance with the laws of the state where the Leased Premises are located and in force at the time of execution of this lease.

9. LESSOR’S LIEN: As additional security, LESSEE acknowledges, to the extent allowed by applicable law, the LESSOR’S right to hold and sell with due legal notice all property on or to be brought on the Premises in order to satisfy unpaid Rent, expenses, and utilities.

10. DEFAULT: Each of the following shall be deemed an Event of Default:

Default in the payment of Rent or other payments hereunder.

Default in the performance or observance of any covenant or condition of this lease.

Abandonment of the premises by LESSEE.

Filing or execution or occurrence of bankruptcy or insolvency events.

11. NOTICE OF DEFAULT: Written notice of default must be in writing and may be hand delivered or mailed by certified mail. The cure period shall be not less than business days from the date of mailing the notice of default.

If LESSEE fails to pay rent when due, LESSOR may serve a Notice of Default upon the LESSEE, requiring payment of rent in full within three (3) days from service of the Notice, or surrender of the premises.

12. TERMINATION: Upon occurrence of any Event of Default, and after proper notice of default has been given, LESSOR may terminate this lease upon the date specified in the notice, which date shall not be earlier than days after mailing or delivery of such notice.

13. ACCELERATION: Upon LESSOR’S termination of this Lease, the entire remaining balance of unpaid Rent for the remaining term of this Lease shall accelerate and become immediately due.

14. REPOSSESSION: Upon termination of this lease, LESSOR may enter forthwith, without further demand or notice to LESSEE, and resume possession of the Leased Premises.

15. DEFAULT BY LESSOR: In the event of any default by LESSOR, LESSEE, before exercising any rights that it may have at law to cancel this lease, must first send notice by registered or certified mail, or hand delivery, to LESSOR, and shall have offered LESSOR () days in which to correct and cure the default or commence a good faith effort to cure such default.

16. RE-LETTING AFTER TERMINATION: Upon termination of this lease in any manner above provided, LESSOR shall use reasonable efforts to re-let the Premises.

17. DAMAGES: Upon termination of this lease, LESSEE shall pay to LESSOR without demand or notice the following:

(a) All Rent and other payments accrued to the date of such termination and a proportionate part of the rent otherwise payable for the month in which such termination occurs.

(b) All future Rent and other payments to be due under the terms of this lease to the extent Landlord has not been able to offset same by re-letting the Premises within 30 days of termination.

(c) The costs of making all repairs, alterations and improvements required to be made by LESSOR hereunder.

(d) The attorneys’ fees and other costs.

18. EXCLUSIVITY OF LESSOR’S REMEDIES: The receipt of Rent after default shall not deprive the LESSOR of other actions against the LESSEE for possession or for Rent or for damages.

19. LESSOR NOT LIABLE FOR INJURY OR DAMAGE TO PERSONS OR PROPERTY: The LESSOR shall not be liable for any injury or damage except as noted in this lease. LESSEE agrees to maintain insurance coverage as noted below and to indemnify, defend and hold harmless LESSOR.

20. TAXES: Property taxes on the Leased Premises shall be responsibility of LESSOR. Taxes on the personal property of Lessee shall be the responsibility of LESSEE.

21. RIGHT OF RE-ENTRY: LESSOR shall have the right to enter the Premises at reasonable hours to examine or exhibit the premises, or to make repairs and alterations as necessary.

22. HOLDOVER: If LESSEE shall holdover after the expiration of the Term hereof, with the consent of LESSOR, such tenancy shall be from month to month only.

23. NATURE OF RELATIONSHIP BETWEEN PARTIES: The sole relationship between the parties created by this agreement is that of LESSOR and LESSEE.

24. RIGHT OF LESSOR TO PAY OBLIGATIONS OF LESSEE TO OTHERS: If LESSEE shall fail or refuse to pay any sums due, LESSOR may pay such sums after 10 days notice in writing.

25. MECHANICS AND OTHER LIENS IMPOSED BY LESSEE: LESSEE shall keep the Leased Premises free of mechanics and materialmen’s liens and other liens of like nature.

26. CONDEMNATION CLAUSE: In the event that all or a part of the Premises is taken by eminent domain, this lease will terminate effective as of the date of possession by the condemning authority.

27. FIRE CLAUSE: LESSEE agrees to notify LESSOR immediately of any damages by fire or other hazard.

28. WAIVER OF NONPERFORMANCE: Failure of LESSOR to exercise any rights under this lease shall not be considered a waiver.

29. PAROL EVIDENCE CLAUSE: This instrument constitutes the final, fully integrated expression of the agreement between the LESSOR and the LESSEE.

30. SUBORDINATION: This lease is subordinate to the lien of all present or future mortgages that affect the Leased Premises.

31. INSURANCE: LESSEE shall keep in full force and effect a policy of public liability insurance with respect to the property and the business operated by LESSEE.

The limits of general liability shall be in the amount of Dollars ($ ) combined single limit, naming LESSOR as additional insured.

LESSOR shall during the term hereof, at its sole expense, provide and keep in force insurance on the building against loss or damage by fire and extended coverage.

32. NOTICES: All notices and communications concerning this lease shall be mailed to the parties at the following addresses:

LESSOR

LESSEE

33. SALE BY LESSOR: In the event of a sale or conveyance by LESSOR of all or part of the Leased Premises, LESSEE agrees to attorn to the purchaser or assignee.

34. COURT ACTION, ATTORNEY’S FEES AND COSTS: If suit should be brought for damages, to enforce payment of Rent, to recover possession, or to enforce any provision hereof, the losing party agrees to pay reasonable costs and expenses incurred in prosecuting these suits.

35. ASSIGNMENTS AND SUB-LEASE: The LESSEE hereby agrees not to assign this lease or sub-lease the Premises without the written consent of the LESSOR.

36. INTERPRETATION: Masculine includes feminine and neuter genders, and singular includes plural and vice versa.

37. MODIFICATION: Any modification or amendment of this agreement shall be in writing and executed by all parties.

38. SEVERABILITY CLAUSE: If any term, covenant, condition, or provision of this lease is held invalid, the remainder shall remain in full force and effect.

39. LAW TO APPLY: This lease shall be construed under and in accordance with the laws of the State of California.

40. ADDENDUMS: The following addendums are attached to this lease at the time of its signing, and shall be initialed by the parties. Check all that apply or check none.

Option to Purchase

Arbitration Agreement

Other:

None

41. OTHER PROVISIONS:

All documents such as schedules, exhibits and like documents existing at the time of this Lease’s signing are incorporated herein and shall be initialed by all parties.

If LESSEE is a corporation, each person executing this lease represents and warrants that he is duly authorized to execute and deliver this lease on behalf of the corporation. Those persons further represent that the terms of this lease are binding upon the corporation.

In Witness Whereof, the undersigned LESSOR and LESSEE execute this lease to be effective as of the day and date first above written.

LESSEE(s)

Signature

Signature

LESSOR(s)

Signature

Signature

Enter text

What the California Commercial Lease Covers

A California Commercial Lease is a written agreement that sets the legal relationship between a landlord and a tenant for nonresidential property in California. It defines the premises, lease term, rent and payment schedule, permitted uses, maintenance responsibilities, insurance and indemnity obligations, default remedies, and termination rules. Commercial leases commonly include provisions on subleasing, assignment, rent escalation, tenant improvements, and restoration. Because commercial leases allocate business risks, parties often negotiate bespoke terms and attach exhibits such as floor plans, tenant improvement allowances, and operating expense definitions to the primary agreement.

Why a Clear Commercial Lease Matters for California Transactions

A precise lease reduces dispute risk, clarifies financial obligations, and preserves priority rights for longer-term interests. It also helps lenders, insurers, and investors assess exposure and ensures enforceability when executed in writing.

Why a Clear Commercial Lease Matters for California Transactions

Who Uses the California Commercial Lease and How It’s Shared

Typical users include landlords, commercial tenants, brokers, property managers, lenders, and legal counsel working on leasing transactions.

  • Landlords and owners protect asset value and set tenant obligations in clear contractual terms.
  • Tenants and operators secure permitted uses, improvements, and termination protections for business operations.
  • Commercial brokers and property managers use leases to document commissions, leasing conditions, and tenant onboarding.

Each party relies on the lease for operational clarity and legal rights; involve counsel for negotiated or nonstandard provisions.

Core Elements Found in a Professional California Commercial Lease

Commercial leases contain distinct sections that define rights, payment mechanics, and remedies; well-organized agreements reduce ambiguity and litigation risk.

Parties & Premises

Identifies landlord and tenant legal names, the precise premises description, suite numbers, and any included parking or storage areas.

Term & Renewal

Specifies lease start and end dates, options to renew, notice timing, and any rent changes tied to renewal periods.

Rent & Payments

States base rent, payment frequency, late fees, payment address or electronic method, and common-area maintenance allocations if applicable.

Security Deposit

Sets the deposit amount, permitted uses, conditions for withholding, and procedures for returning funds after lease termination.

Maintenance & Repairs

Allocates repair and maintenance duties between landlord and tenant, including structural items, HVAC, and tenant improvements.

Default & Remedies

Defines events of default, cure periods, landlord remedies (including eviction and damages), and tenant defenses if negotiated.

Step-by-Step: Completing the Lease Document

Follow these sequential steps to assemble, review, and execute a commercial lease efficiently and with fewer errors.

  • 01
    Gather Documents: Collect title, entity formation, insurance certificates.
  • 02
    Fill Core Fields: Enter names, dates, rent, and premises information.
  • 03
    Review Terms: Confirm repairs, insurance, and default provisions.
  • 04
    Execute & Archive: Sign, distribute copies, and store the executed agreement.

How to Configure an Online Lease Workflow

Set up the digital workflow to match your signing order, authentication needs, and storage preferences before sending the lease to signers.

Field Configuration
Authentication Email link, SMS code, or stronger verification
Signature Order Sequential signer order or parallel signing
Notifications Reminders and completion alerts to parties
Storage Save to cloud storage or export to PDF

Where to Send and File a Commercial Lease

Know the typical destinations and recipients for completed lease documents, and when optional recording or distribution is recommended.

  • Deliver to Parties: Provide executed copies to landlord and tenant.
  • Send to Broker: Distribute final copy for commission records.
  • Record if Necessary: Record a memorandum where long-term priority is required.
  • Store Securely: Retain digital and physical originals per retention rules.

Digital Signing and File Format Considerations

Choose a platform that supports PDF and DOCX, preserves audit trails, and meets your authentication needs.

  • File Formats: PDF and Word DOCX supported
  • Integrations: Connects with Google Workspace and NetSuite
  • Authentication: Email, SMS, or advanced signer verification

Ensure the chosen system provides tamper-evident signed PDFs, secure storage, and industry integrations for document lifecycle management.

Key Risks and Consequences of Lease Drafting Errors

Name Mismatch: Incorrect party name can impair enforcement
Statute of Frauds: Oral leases over one year may be unenforceable
Recording Errors: Failure to record a memorandum may reduce priority
Insurance Gaps: Insufficient coverage can shift liability to parties
Undisclosed Hazards: Failure to disclose can create civil liability
Improper Notices: Faulty notice provisions can delay remedies

Common Preparation Mistakes to Avoid

  • Vague rent escalation language creates disputes about increases and expense pass-throughs if not tied to a clear index or formula.
  • Ambiguous maintenance clauses leave uncertainty about which party pays for structural versus tenant improvements or system repairs.
  • Failing to match the tenant's legal entity name to formation documents can invalidate guaranties or enforcement actions.
  • Omitting specific permitted uses or signage rights can lead to lease violations and business interruption disputes between parties.

Essential Data Elements Every Lease Must Include

Landlord Name: Exact legal entity
Tenant Name: Exact legal entity
Premises Address: Full street address
Lease Term Dates: Start and end dates
Rent Amount: Base rent and cadence
Security Deposit: Dollar amount and terms

How to Amend or Revise a California Commercial Lease

Follow a clear amendment workflow to ensure that changes are enforceable, signed by authorized parties, and properly documented.

01

Amendment Drafting:

Prepare a written amendment referencing original lease provisions
02

Internal Approval:

Obtain approvals from decision-makers or committees
03

Signatures Required:

Have authorized signers execute the amendment
04

Notarization if Required:

Notarize when jurisdiction or lender requires it
05

Recordation:

Record a memorandum if the amendment affects priority
06

Distribute Copies:

Circulate executed copies to all parties and stakeholders

Real-World Examples of Lease Use and Common Outcomes

Two concise scenarios illustrate typical commercial lease workflows and practical outcomes when terms are clear versus ambiguous.

Retail Tenant Lease Example

A regional retailer negotiated a tenant improvement allowance and specific opening date obligations.

  • The point: tie allowances to milestones.
  • When the lease linked payments to milestones with inspection criteria, disputes over completion and withholding were avoided and occupancy proceeded on schedule.

Office Building Lease Example

A landlord used a standard form lease with base rent plus CAM charges defined by schedule.

  • The point: clearly define operating expense categories.
  • Clear definitions and annual reconciliations limited tenant disputes and streamlined accounting for both landlord and tenant during audits.

eSignature Pricing and Feature Comparison for Lease Execution

Basic vendor pricing and capability indicators to assess electronic signing vendors suitable for executing California Commercial Leases.

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 plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About California Commercial Leases

Answers to common legal and practical questions about drafting, signing, recording, and enforcing commercial leases in California.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users