Pennsylvania Commercial Lease Agreement

Last Updated: January 20, 2023

The Pennsylvania commercial lease agreement is a binding legal contract that allows a business entity to rent commercial space, such as an office, retail building, or industrial space. This lease defines the relationship between the landlord and the business and lays out the responsibilities of each party.

Pennsylvania Commercial Landlord-Tenant Law

Here are some interesting Pennsylvania commercial lease laws:

  • Confession of Judgment: Under Pennsylvania law, a commercial lease may contain a confession of judgment clause for monetary damages and/or for repossession of the premises. If a tenant defaults on the terms and conditions of the commercial lease, the confession of judgment may be entered by the landlord in a court of proper jurisdiction without the need for any notice to the tenant or other legal proceedings. The tenant has no right to dispute a confession of judgment. This type of provision is not allowed in many other states because it gives a landlord a powerful immediate remedy for a commercial tenant’s default.
  • Landlord Not Required to Mitigate Damages: No Pennsylvanian law requires a landlord to mitigate any damages in the case of a default by a tenant. For example, if a tenant does not pay the rent, the landlord can sue the tenant for the balance of the rent due on the lease contract until the termination date. The landlord does not have to look for a replacement tenant.
  • Lease Agreement Can Waive Statutory Rights: The Landlord and Tenant Act of Pennsylvania creates the basic framework for the landlord’s and tenant’s rights. However, the terms and conditions of a written lease agreement can waive or change most of these rights.