COMMERCIAL LEASE ANALYSIS
What is the distinction between a “commercial” and a “residential” lease? How do the differences in use of the leased property impact the terms of the lease? In a commercial lease agreement, should the law seek to protect the interests of the commercial tenant more than the interests of the commercial landlord? Why or why not?
- A residential lease is a contract between a landlord and a tenant for the use of a dwelling unit. A dwelling unit is a place where people live, such as an apartment, house, or condo.
- A commercial lease is a contract between a landlord and a tenant for the use of commercial space. Commercial space is any space that is not used for residential purposes, such as a store, office, or warehouse.
The differences in use of the leased property impact the terms of the lease in a number of ways, including:
- Term: Residential leases typically have shorter terms than commercial leases. This is because residential tenants are more likely to move frequently, while commercial tenants are more likely to stay in place for a longer period of time.