The Commercial Rental Agreement serves as a legally binding contract between property owners and business tenants in the Philippines. This document is essential when leasing commercial spaces such as retail outlets, offices, warehouses, or industrial facilities. It must comply with the Civil Code of the Philippines, particularly Title VIII on Lease (Articles 1643-1753), and incorporate local government regulations and building codes. The agreement typically includes detailed provisions for rent calculation, payment terms, security deposits, maintenance obligations, insurance requirements, and property use restrictions. It's designed to protect both parties' interests while ensuring compliance with Philippine commercial property laws and regulations. This document is particularly crucial for businesses establishing or expanding their physical presence in the Philippine market.
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1. Parties: Identification of the Lessor and Lessee with complete legal names, addresses, and tax identification numbers
2. Background: Context of the agreement and brief description of the commercial property
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the leased premises including exact location, size, and boundaries
5. Lease Term: Duration of the lease, commencement date, and termination date
6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and advance rent requirements
7. Utilities and Operating Expenses: Allocation of responsibility for utilities, maintenance, and other operating costs
8. Use of Premises: Permitted commercial use and restrictions on property usage
9. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and improvements
10. Insurance and Liability: Required insurance coverage and liability allocation between parties
11. Default and Remedies: Events of default and corresponding remedies available to either party
12. Termination: Conditions and procedures for early termination or non-renewal
13. Governing Law: Specification of Philippine law as governing law and jurisdiction
14. Execution: Signature blocks and notarization requirements
1. Subletting and Assignment: Terms for subletting or assigning the lease, if permitted
2. Alterations and Improvements: Procedures and permissions for making modifications to the premises
3. Force Majeure: Provisions for unforeseen circumstances or events beyond parties' control
4. Option to Renew: Terms for lease renewal if such option is offered
5. Right of First Refusal: Lessee's right to match any third-party offer to lease or purchase
6. Common Areas: Rules and costs for shared facilities in multi-tenant buildings
7. Signage Rights: Terms regarding installation and maintenance of commercial signage
8. Environmental Compliance: Special provisions for businesses handling hazardous materials or requiring environmental permits
1. Schedule A - Property Floor Plan: Detailed floor plan showing exact measurements and boundaries of the leased space
2. Schedule B - Inventory List: List of fixtures, furniture, or equipment included in the lease
3. Schedule C - Building Rules and Regulations: Specific rules governing the use of the building and common areas
4. Schedule D - Fit-out Guidelines: Technical specifications for any permitted renovations or improvements
5. Schedule E - Utility Meters and Readings: Initial meter readings and meter numbers for utilities
6. Schedule F - Maintenance Schedule: Regular maintenance schedule and responsibilities
7. Appendix 1 - Required Permits: List of necessary business permits and licenses
8. Appendix 2 - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office Space
Food and Beverage
Healthcare
Education
Manufacturing
Warehousing
Financial Services
Technology
Professional Services
Entertainment
Hospitality
Relevant Teams
Legal
Finance
Operations
Facilities Management
Risk Management
Procurement
Business Development
Compliance
Corporate Services
Real Estate
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Real Estate Manager
Property Manager
Business Development Manager
Legal Counsel
Facilities Manager
Operations Director
Commercial Lease Administrator
Risk Manager
Procurement Manager
Store Manager
Branch Manager
Corporate Services Manager
Compliance Officer
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