A New York commercial lease agreement is a contract for a tenant to lease office, retail, or industrial space. The agreement sets the duties and rights for both landlords and tenants, as well as information about rent, deadlines, penalties, and other details.
The New York law that governs commercial leases is New York Laws, Uniform Commercial Code, Article 2A. These types of leases are generally more complex than a residential lease, so consulting with a lawyer is recommended.
Recommended New York Commercial Lease Items
The following are commercial lease recommendations in New York:
- Good Guy Clause – This common New York clause allows for the tenant to terminate the lease early if certain conditions are met. These conditions usually include sufficient notice, rent paid in full through the date of vacating the premises, and that the premises are in good condition.
- Use of Premises – This clause defines the authorized uses of the commercial space. It will outline what can and can’t be done, for example that no one can live there, or that food cannot be served.
- Food Use Rider – Any food use violations by the tenant wouldn’t legally fall on the owner of the building, but it could mean the end of a lucrative lease agreement. By including the food use laws in New York, the owner can protect their own interests.
Writing New York Commercial Lease Agreements
A New York 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 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
- Place for the signatures of all parties
