How much does a commercial lease agreement cost?

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How Much Does a Commercial Lease Agreement Cost?

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a commercial lease agreement is $730 [1].

Average Cost Data from Lawyers on ContractsCounsel

All Commercial Lease Agreement Projects: Drafting a Commercial Lease Agreement: Reviewing a Commercial Lease Agreement:

Based on 87 recent projects completed by lawyers on ContractsCounsel.

Last updated: 26 June, 2024

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What is a Commercial Lease Agreement?

A commercial lease agreement is a legally binding contract between a landlord and a business owner. The commercial lease agreement lays out the terms and conditions under which the business owner can rent a space in the landlord’s building to conduct business.

Renting a space rather than buying it is often advantageous to a business because they don’t need the capital required to purchase the property. In addition, renting a space in a building saves money. Depending on the type of lease, the business owner may not have to pay additional fees like maintenance and property taxes.

Commercial lease agreements differ from standard residential leases. For this reason, many landlords choose to hire an attorney to draft the document. A commercial lease needs to include essential information like:

An experienced lawyer familiar with commercial lease agreements will know what needs to be included in the agreement to make it legally enforceable should any type of dispute arise.

See Commercial Lease Agreement Pricing by State

What’s Typically Included in a Commercial Lease Agreement?

Commercial lease agreements are typically more complicated than residential agreements and require additional lease terms. Although the terms will vary based on the landlord and the business, the following list includes common provisions in commercial lease agreements.

Commercial lease agreements are highly customizable, so landlords and business owners can include any additional terms they think are necessary. It is important to ensure there are no vague or illegal terms in the agreement because they will not be enforceable.

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Types of Commercial Lease Agreements

As mentioned above, there are several types of commercial lease agreements. The various agreements vary based on who is responsible for paying additional expenses like taxes, maintenance, and utilities.

The six most common commercial lease agreements include:

A commercial lease agreement must clearly state which type of lease is being used, what expenses are the landlord’s responsibility, and what the tenant must cover.

Examples of Commercial Lease Agreement Projects

Commercial Lease Agreement Drafting Services

Many landlords hire a real estate lawyer to draft their commercial lease agreement. Landlords must be protected by their lease. Hence, it needs to include all necessary provisions and terms legally binding and enforceable.

A real estate lawyer will typically charge a client for an initial consultation and then for the time it takes to draft the commercial lease. Some lawyers will include revisions or additional meetings in the cost; however, some may charge additional fees for extra legal work.

Commercial Lease Agreement Review Services

Having a lawyer review a lease agreement can be invaluable for a tenant. Lease agreements are generally drafted by the landlord and tend to favor the landlord's interests more. Before signing a commercial lease agreement, the tenant should have their attorney go over the document to ensure it is fair and protects the tenant's interests.

How Much Does it Cost to Draft a Commercial Lease Agreement?

Hiring an attorney to draft a commercial lease agreement will cost the landlord. Still, it is usually well worth the expense. A lawyer will draft a professional, legally binding agreement that the landlord can use over and over.

ContractsCounsel’s marketplace data shows the average commercial lease agreement drafting costs $710 across all states and industries.

How Much Does it Cost to Review an Existing Commercial Lease Agreement?

Review services by an attorney will also come with fees. For example, suppose the tenant hires a lawyer to review the contract before signing. In that case, they will be fully responsible for paying the lawyer.

ContractsCounsel’s marketplace data shows the average commercial lease agreement review costs to be $730 across all states and industries.

How Do Lawyers Charge for a Commercial Lease Agreement?

Real estate attorneys can charge for their services in several ways. Hourly rates and flat fee rates are the two most common fee structures.

Hourly Rates for Commercial Lease Agreements

When using an hourly rate fee structure, the lawyer will bill the client for the number of hours spent working on a project at a set hourly rate. The lawyer must inform the client of the hourly rate. The parties should execute a written retainer agreement outlining all billing and payment terms and conditions.

Hourly rate agreements protect lawyers because they will be compensated for all time spent working on a case or project, even if it takes longer than expected.

ContractsCounsel’s marketplace data shows the average hourly rate for a real estate lawyer ranges from $225 - $300 per hour.

Flat Fee Rates for Commercial Lease Agreements

When a lawyer is hired for a specific project and has a precise end date, they may use a flat fee rate structure. The lawyer will provide the client with a comprehensive fee that includes all work for the project.

If the client agrees to the price, they will pay upfront and typically not worry about additional costs. However, it is wise to execute a fee agreement like an hourly rate schedule so the client knows what legal services the flat rate fee includes.

ContractsCounsel’s marketplace data shows the average flat fee rate for a commercial lease agreement is $730.

Get Help with a Commercial Lease Agreement

Do you need help with a commercial lease agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

References

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.