Alabama Commercial Lease Agreement

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The Alabama commercial lease agreement is a form used by a property owner seeking to rent their retail, office, or industrial space to someone else. Before authorizing an agreement, the landlord may be advised to verify the tenant’s credentials through the rental application.

State Definition | 7-2A-103(k)

(k) “Lease agreement” means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this article. Unless the context clearly indicates otherwise, the term includes a sublease agreement.

3 Types

The agreement may be written into three (3) main types of lease contracts;

  • Gross – Type of agreement where the tenant pays landlord a fixed amount every month month which does not cover any expenses including real estate taxes, common area maintenance (CAM’s), or insurance. Ideal for lessee’s.
  • Modified Gross – Type of contact where the tenant pays a portion of the expenses on the property.
  • Triple Net (NNN) – Type of agreement where the tenant pays for all the expenses on the property including real estate taxes, insurance, and common area maintenance (CAM’s). Although the landlord remains responsible for the structure of the building including the roof.

If the landlord or tenant have any questions about the laws in Alabama, they should refer to the Alabama Commercial Code Title 7 Article 2A.

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