New York Commercial Lease Agreement Template
A New York Commercial Lease Agreement is a legally enforceable contract between a landlord and a business tenant. These agreements are used to outline the terms for the rental of commercial property within the state.
They can be used for non-residential properties such as:
- Office spaces
- Retail stores
- Warehouses
- Industrial buildings
Unlike residential leases, commercial leases in New York offer fewer statutory protections. This makes it important for both parties to carefully negotiate and review terms before signing.
Required Disclosures in New York Commercial Lease Agreements
New York commercial landlords must include certain disclosures in the lease, either by law or standard practice. These help prevent disputes and ensure compliance with local, state, and federal rules.
- Certificate of Occupancy (CO): Landlords must guarantee that the property has a valid CO for the tenant’s intended use.
- Sprinkler disclosure: All commercial leases must state whether a sprinkler system is installed and when it was last inspected. (RPL § 231-a)
- ADA compliance: Businesses open to the public must comply with the Americans with Disabilities Act. The lease should specify whether the landlord or tenant is responsible for required upgrades.
- Hazardous materials: You must disclose if the property contains hazardous materials like asbestos, mold, or lead paint (in buildings from before 1978).
- Real estate tax escalation: If the tenant will pay a share of any increase in property taxes or operating costs, the lease must clearly explain how these amounts are calculated.
- Personal guaranty: If a guaranty is required, it must be disclosed in writing and attached to the lease. NYC landlords should check enforceability rules for certain small business guarantees post-COVID. (NYC Admin Code § 22-1005)
New York Commercial Lease Grace Period
New York law does not require a grace period for commercial rent payments. If the landlord offers one, it must be clearly stated in the lease, including the number of days and any late fee details.
Security Deposits in New York Commercial Lease Agreements
There is no limit on commercial security deposits in New York. The amount is negotiated between landlord and tenant.
New York law (GOL § 7-103) requires landlords to hold the deposit in a separate account. They must return it at the end of the lease, minus any deductions. If the deposit earns interest, terms for who keeps it must be in writing.
Helpful Resources
You can read more about the regulations surrounding New York Commercial Lease Agreements in the following resources: