Alabama Commercial Lease Agreement

Last Updated: December 13, 2023 by Cameron Smith

Alabama Commercial Lease Agreement Template_1 on

An Alabama commercial lease agreement is a binding contract for a tenant to lease retail, office, or industrial space. The agreement sets the responsibilities and rights for both landlords and tenants, as well as details about rent, deadlines, penalties and other details.

The Alabama law that governs commercial leases is Alabama Code Title 7. Commercial Code § 7-2A-103. These types of leases are longer and more complicated than a residential lease, so consulting with a lawyer is advisable.

Alabama Commercial Lease Requirements

The following are Alabama-specific requirements pertaining to commercial leases:

  • Consumer Protection Law: Alabama Consumer Protection laws apply to commercial leases.
  • Jurisdiction: The legal jurisdiction for consumer leases (which is generally specified in the lease) must be in one of the following:
    • Where the tenant resides
    • Where the property is located
    • Where the lease is executed

Writing Alabama Commercial Lease Agreements

An Alabama commercial lease agreement should generally contain the following:

  • Landlord’s name and contact information
  • Property manager’s name and contact information (if any)
  • Tenant’s name and contact information
  • Description of the lease property
  • Authorized use of the lease property
  • Type of lease (gross, modified-gross, or triple-net)
  • Term of the lease and the commencement date
  • Option to renew the lease (if any)
  • Rent and landlord’s profit participation in operations (if any)
  • Penalty for late/non-payment of rent (including eviction process)
  • Designation of the responsible parties for certain expenses and utilities
  • Security deposit and refund policy
  • Permissible leasehold improvements allowed by the landlord
  • Additional terms as needed (including municipal codes and restrictions)
  • Landlord and tenant contact information and form for legal service
  • Jurisdiction and reference to Alabama state law
  • Miscellaneous terms specific to the lease