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Commercial Property Lease Agreement for Philippines

Commercial Property Lease Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that establishes the terms and conditions for leasing commercial property between a lessor and lessee. The agreement is structured in accordance with the Civil Code of the Philippines and relevant property laws, incorporating specific provisions for commercial use, maintenance obligations, rental terms, and compliance requirements. It includes detailed specifications about the property, payment terms, duration of lease, permitted uses, and various obligations of both parties, while ensuring adherence to local government regulations and building codes.

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What is a Commercial Property Lease Agreement?

The Commercial Property Lease Agreement is a vital legal instrument used in the Philippines when a property owner (lessor) agrees to rent out commercial space to a business tenant (lessee). This document is essential for protecting both parties' interests in commercial property transactions and must comply with Philippine civil law, particularly the Civil Code of the Philippines and relevant property regulations. It's commonly used for retail spaces, office buildings, industrial facilities, and other commercial properties, containing comprehensive terms covering rent, duration, maintenance, utilities, insurance, and various other aspects of the commercial tenancy relationship. The agreement should be tailored to meet specific local government requirements, zoning regulations, and building codes applicable in the Philippine jurisdiction where the property is located.

What sections should be included in a Commercial Property Lease Agreement?

1. Parties: Identification of the Lessor and Lessee, including complete legal names, addresses, and tax identification numbers

2. Background: Context of the lease agreement, brief description of the property, and purpose of the lease

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased property, including exact location, floor area, and included facilities

5. Lease Term: Duration of the lease, commencement date, and expiration date

6. Rent and Payment Terms: Rental amount, payment schedule, mode of payment, and escalation provisions

7. Security Deposit and Advance Rent: Amount, payment terms, and conditions for return of security deposit and advance rent

8. Utilities and Operating Expenses: Responsibility for utilities, maintenance fees, and other operating costs

9. Use of Premises: Permitted use of the property and restrictions on activities

10. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

11. Insurance: Required insurance coverage and responsibilities of each party

12. Assignment and Subletting: Conditions and restrictions on assignment or subletting of the premises

13. Default and Remedies: Events of default and available remedies for both parties

14. Termination: Grounds for termination and procedures

15. Governing Law: Specification of Philippine law as governing law and jurisdiction

16. Execution: Signature blocks and notarial requirements

What sections are optional to include in a Commercial Property Lease Agreement?

1. Fit-out Period: Terms and conditions for initial renovation period, used when premises are delivered in bare condition

2. Option to Renew: Terms for lease renewal, included when parties agree to possible extension

3. Common Areas: Rights and obligations regarding shared facilities, included for properties in commercial complexes

4. Signage Rights: Terms for installation and maintenance of business signs, relevant for retail spaces

5. Parking: Allocation and terms of parking spaces, if applicable

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

7. Environmental Compliance: Special environmental obligations, required for certain types of commercial activities

8. Guarantor Provisions: Terms relating to guarantors, used when additional security is required

What schedules should be included in a Commercial Property Lease Agreement?

1. Schedule 1 - Property Floor Plan: Detailed floor plan showing exact boundaries of leased premises

2. Schedule 2 - Inventory of Fixtures: List of fixtures and fittings included in the lease

3. Schedule 3 - House Rules: Building rules and regulations

4. Schedule 4 - Fit-out Guidelines: Technical specifications and requirements for renovations

5. Schedule 5 - Utility Rates: Current rates for utilities and method of computation

6. Schedule 6 - Maintenance Schedule: Schedule of regular maintenance activities and responsibilities

7. Appendix A - Required Permits: List of permits required for property use and business operation

8. Appendix B - Insurance Requirements: Detailed insurance requirements and coverage specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions




































Clauses




































Relevant Industries

Real Estate

Retail

Food and Beverage

Professional Services

Healthcare

Financial Services

Technology

Manufacturing

Education

Hospitality

Entertainment

Logistics

Construction

Telecommunications

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Procurement

Risk Management

Compliance

Property Management

Asset Management

Business Development

Administration

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Business Owner

CEO

CFO

Operations Manager

Real Estate Agent

Leasing Manager

Asset Manager

Commercial Director

Procurement Manager

Risk Manager

Compliance Officer

Branch Manager

Store Manager

Finance Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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