California Commercial Lease Agreement

The California Commercial Lease Agreement (Form CL) is a legal document created by the California Association of Realtors for the purpose of providing a means for two (2) parties to make a detailed agreement regarding the rental of space to be used for business purposes. for tenants looking to rent out an office, building, or other property from a commercial landlord for a business purpose. To the landlord’s benefit, California law is very relaxed in regard to the expectations of commercial renters (in comparison to how they treat residential landlords). Although decreased regulation is often a good thing, commercial tenants should be on guard at all times during negotiation to ensure they are not being taken advantage of. Overall, decreased regulation provides both parties to negotiate the terms of the lease, which can result in lower monthly rent and the ability to make physical changes to the rental, to name a few things. Tenants should negotiate before signing the contract, as after signatures have been recorded the landlord can refuse any requested changes.

Because the commercial leasing process can be confusing, it is wise that an attorney or licensed commercial realtor be consulted before signing any documents.

Additional Information

For those that are planning in advance to open a business in the state of California, having a solid grasp of the state’s filing requirements and ensuring any planned entity name has not already been taken, is very important. The below links may be helpful with this process:

Entity Search Tool: California Online Services Business Search

LLC Formation: California Secretary of State Limited Liability Company Filing Tips