Fillable Form Commercial Lease Extension Agreement

What is a Commercial Lease Extension Agreement?

A Commercial Lease Extension Agreement is a legal document that a lessor and a lessee enter to renew a Commercial Lease Agreement. Essentially, it allows tenants who are leasing a certain commercial real estate property to extend their stay in the property.

This agreement is generally for people who want to renew their current contract with the commercial real estate they are staying in. However, it does not mean that both parties are strictly tied to the provisions of the current contract. An extension of a commercial lease agreement can also contain provisions to change the amount of rent, the updating of provisions in the current lease, or to create a shorter or longer lease term for the contract.

You might want to enter this agreement for a few reasons:

• You think that this commercial property is the best place for your business.
• Your business is doing good in that specific commercial real estate.
• You currently have an amicable relationship with your landlord and you do not want to risk acquainting yourself with a new landlord who might not be as likable as the one you have.
• The location is the only viable location for your business and moving away will damage sales.
• You are content with the current legal terms and conditions that your business has and you do not want to risk negotiating for a new contract elsewhere.
• You recognize that finding a new locale for your business is extremely time-consuming and will inevitably damage your profits.

While not strictly necessary in business endeavors, this agreement is usually written by the property owner (the lessor) when a commercial lease agreement is about to expire. The tenant, in turn, can review this agreement, preferably under the guidance of an attorney to ensure that the agreement is fair. The property owner should make sure that the rights of the tenant are respected and that no amendments have been made to the agreement without the knowledge and approval of the tenant.

To add, the commercial lease extension agreement is not exclusive to real estate property. It can be applied to any form of property that is being leased for commercial purposes that has a legal agreement to govern its use. This includes but is not limited to:

• Vehicles
• Machinery
• Equipment
• Industrial Plants

How to fill out a Commercial Extension Agreement?

Where to get the form?

Property owners and tenants who are interested in drafting this agreement can find a PDF copy to download and print from online legal databases.

You can also fill out a Commercial Extension Agreement PDF electronically through PDFRun.

Filling out the Form

The first paragraph details the date the extension was made and the participants who are entering this extension. Input the date first. Then, input the complete name of the property owner, and their full mailing address. They will be known as the “Lessor” for the rest of the agreement.

After that, input the complete name and full mailing address of the tenant. They will be known as “Lessee” for the rest of the agreement.

The section below this paragraph details information about the current lease agreement that the Lessor and the Lessee are abiding under.

WHEREAS, (1)

Input the date when both parties entered the current lease agreement.

WHEREAS, (2)

Input the expiration date of the current lease agreement.

WHEREAS, (3)

This section is a confirmation that the lessor and the lessee have mutually agreed to extend the current lease agreement.

NOW THEREFORE,

This section is to renew or revise the terms and conditions of the current contract. All information that is entered in this section must be acknowledged and approved by both parties.

A. Extension of Term

This section is where the new expiration date of the contract will be detailed. Input the number of years that the contract will last for. Then, input the date when the extension will take full effect and its new expiration date. The entered timeframe will be called the “Extended Term” for the rest of this agreement.

B. Revised Rent

This section is where the lessor and the lessee will agree on the rent to be paid within the extended term. Input the agreed-upon rent amount and the day of the month that each payment should be made in full.

C. Terms and Conditions

This section is to verify that the terms and conditions of the current agreement will remain in full force and effect as modified by the revisions made in this lease extension.

Both parties can modify other parts of the current agreement aside from the ones that are listed above. To do this, consult a legal professional concerning the matter to find out what documents are required to make these amendments.

IN WITNESS WHEREOF

This clause is to confirm that both parties agree on the date that this extension is to be executed and have full effect on their agreement.

Signature

Lessor

This is where the property owner will sign.

Sign:

Affix the signature of the property owner here.

Print Name:

Input the property owner’s full name.

Date:

Enter the date when the property owner signed this extension.

Lessee

This is where the tenant will sign.

Sign:

Affix the signature of the tenant here.

Print Name:

Input the full name of the tenant.

Date:

Enter the date when the tenant signed this extension.

Reminders when filling out a Commercial Extension Agreement

Consult a legal professional

When making this extension, it is good to consult a legal professional to review if the revised terms of the agreement will respect the rights of the tenant and the rights of the property owner. Furthermore, it is also good to ask for advice to check if the extension will be going against any local laws.

Notarize your Agreement

Much like any significant agreement between two parties, it is advised that you have your agreement notarized to remove any misunderstandings that might arise further down the line. This goes especially if the agreement is to last for more than one year as some states will require the notarization of this agreement if it lasts for that long.