Key Takeaways

  • A commercial lease application is essential for businesses seeking to rent commercial space and typically includes financial details, business history, and intended use.
  • Landlords may request credit reports, tax returns, references, and personal guarantees depending on the lease structure and applicant.
  • Applicants should review the lease type—such as gross, net, or percentage lease—as each defines who pays for operating costs.
  • It’s critical to evaluate lease clauses like subleasing, renewal terms, and rent escalation before signing.
  • Businesses should be aware of zoning laws and ADA compliance obligations related to their commercial lease.
  • UpCounsel offers access to experienced attorneys who can help review or negotiate commercial lease terms.

A commercial lease application is a form those looking to rent a commercial space will be responsible for filling out before they can be considered for the property. Since renting a commercial space is a large responsibility, the foundation for which many businesses rely upon, understanding the ins and outs of a lease application is essential. One of the first things to consider is how commercial leases differ from residential leases and what the terms in a commercial agreement mean. The primary portions of a commercial lease will include:

  • The amount of rent
  • The length of the lease
  • The configuration of the physical space

It is always important to fully review your lease agreement and understand everything that is included in it before signing anything. Lease agreements can include common traps that are often the source of problems for a renter in the future. Some agreements are also poorly worded or are created from a template so they include generic information with little information on issues that could arise. The main things that you will want to consider before agreeing to a lease are:

  • The cost of rent. Obviously one of the most important things to consider before signing a lease agreement is making sure the rent is affordable.
  • The length of the lease. A short-term lease is often more favorable to businesses that are expecting to grow. Tying yourself into a 10-year lease can be problematic for companies working on expanding their business. If possible, choose a short-term lease with options to renew.
  • Whether or not the space requires modification. When assessing the space in regards to what your business will need, determine if there will be any alterations necessary to accomplish your goals, and discuss with the landlord if the alterations are allowed under the terms of the lease agreement. This can include requests such as dock modifications, installing signage, and putting up cubicles.
  • Whether competitors can rent close to the location. If you are leasing a section in a large building, you may want to check to see if the other sections could be leased to competition, creating a concern if you are selling to walk-up traffic.

What Goes Into Processing a Commercial Lease Application?

When you fill out a commercial lease application, a few steps will be required to complete the process of the application and receive a determination from the landlord.

  • The landlord will verify business details and references to help determine the lessee's creditworthiness.
  • A landlord can charge the applicant a fee to conduct a credit check, which will normally range from $50 to $200.
  • The application will need to include a background of the business, gross income and expenses, bank balances, any rental history, and the owners of the company who may be required to sign a personal guarantee.

Filling out a commercial lease application will be the first step in the rental process for a commercial building. While the form you will be required to fill out is most often known as a commercial lease application, it can also be referred to as a:

  • Commercial Rental Application
  • Commercial Tenant Information Form
  • Commercial Property Application
  • Business Lease Application
  • Retail Lease Application

Types of Commercial Lease Structures

Before finalizing a commercial lease application, it’s important to understand the structure of the lease agreement. Lease types determine how rent and additional expenses are allocated between the tenant and landlord. Common types include:

  • Gross Lease (Full-Service Lease): The tenant pays a fixed rent amount, while the landlord covers most or all operational expenses (e.g., taxes, insurance, maintenance).
  • Net Lease: The tenant pays a lower base rent plus additional costs. Variations include:
    • Single Net Lease (N): Tenant pays property taxes.
    • Double Net Lease (NN): Tenant pays property taxes and insurance.
    • Triple Net Lease (NNN): Tenant pays property taxes, insurance, and maintenance.
  • Modified Gross Lease: A hybrid where certain costs are split between landlord and tenant, often negotiated.
  • Percentage Lease: Common in retail spaces, where tenants pay base rent plus a percentage of their monthly revenue.

Understanding the lease type can help businesses more accurately forecast operating expenses and avoid unexpected financial burdens​.

Who Needs a Commercial Lease Application?

Any person or business that is looking to acquire some space to perform business will often be required to fill out a commercial lease application in order to be considered to be a renter for the property. No matter how long you have been in business, almost all prospective tenants will be required to go through a screening process by the owner or property manager of the building. In the lease application you will most often have to complete:

  • An application
  • A formal offer to lease letter
  • An interview process with the landlord

Common Mistakes to Avoid When Applying

Applicants should avoid these frequent mistakes when completing a commercial lease application:

  • Providing incomplete financial information: Landlords often require tax returns, profit and loss statements, and bank records. Failing to submit them can delay or disqualify the application.
  • Ignoring zoning laws: Ensure the business activity is permitted in the selected property’s zone before applying.
  • Not clarifying permitted use: Clearly state how you plan to use the space. Vague descriptions can raise concerns or result in lease limitations later.
  • Overlooking co-tenancy and exclusivity clauses: Some businesses rely on anchor tenants or want to prevent competitors from leasing in the same plaza. Ensure such provisions are considered.
  • Failing to review lease length and termination terms: Committing to a multi-year lease without flexibility for early exit can create financial strain if the business needs change.

Being thorough and asking questions before signing can help avoid costly surprises down the road​.

What Information Can a Landlord Request on a Commercial Lease Application?

A landlord will be required to stay objective when determining the worthiness of occupants and must make sure their screening process does not discriminate against applicants. To avoid the risk of being accused of discrimination, many landlords will use the same form for each applicant. Information typically requested on a commercial lease agreement includes:

  • The business name
  • The company structure
  • The intended use of the space
  • Previous rental information, including the previous landlord
  • Business owner information
  • Business banking information
  • Credit references
  • Authorization to perform a credit check

Key Clauses to Understand Before Signing a Lease

Even if the application is approved, tenants must carefully examine the lease agreement itself before signing. Pay close attention to clauses such as:

  • Rent escalation: Outlines how and when rent will increase over time (e.g., annual percentage or CPI adjustment).
  • Renewal options: Clarifies if and how the tenant can renew the lease and under what terms.
  • Sublease and assignment: Determines whether you can transfer or sublease the space to another party.
  • Use clause: Defines what business activities are allowed on the premises.
  • Exclusivity clause: May prevent landlords from leasing adjacent spaces to direct competitors.
  • Maintenance responsibilities: Details who is responsible for repairs and upkeep, especially for HVAC, plumbing, or exterior areas.
  • Insurance requirements: Specifies required coverage types and liability limits.

Having an attorney review these clauses can help protect your interests. You can find experienced commercial lease attorneys on UpCounsel.

Additional Documents Tenants May Need to Provide

Along with the application itself, landlords may request supporting documentation to assess the financial and operational stability of a business, including:

  • Business tax returns (past 1–3 years)
  • Profit and loss statements
  • Balance sheets
  • Business licenses and permits
  • Articles of incorporation or other formation documents
  • Personal guarantees or personal financial statements from business owners
  • Letters of recommendation or references from previous landlords

These documents help landlords assess risk and establish the credibility of a potential tenant​​.

Frequently Asked Questions

  1. What documents are typically required for a commercial lease application?
    Applicants may need to submit financial statements, tax returns, business licenses, and personal guarantees, depending on the landlord’s requirements.
  2. What is a triple net lease (NNN)?
    A triple net lease requires the tenant to pay rent plus property taxes, insurance, and maintenance expenses.
  3. How long does it take to process a commercial lease application?
    The process can take a few days to several weeks, depending on the landlord’s screening process and the completeness of the application.
  4. Can I negotiate the terms of a commercial lease after applying?
    Yes, once approved, tenants often negotiate lease terms before signing. Legal guidance is recommended during this stage.
  5. Does my credit score affect my application?
    Yes. Both personal and business credit can be reviewed, especially for small businesses or startups without an established financial history.

If you need help with a commercial lease application, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.