South Dakota Commercial Lease Agreement

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The South Dakota Commercial Lease Agreement is a type of lease used to lend out property to a commercial entity. This lease is unique to commercial entities; A non-profit or charitable organization could not use this kind of lease.

Typically a Commercial Lease will specify what the property can be used for (typically business or industry) and will often have requirements for both landlord and tenant about the surrounding units on the property. A Commercial Lease in a mall may have a clause about limiting or prohibiting similar businesses in the same mall, for example.

In a Commercial Lease, the tenant will often be responsible for costs other than the rent. The most common type of Commercial Lease is a Triple Net Lease (NNN) where the tenant is responsible for the utilities, repair and property taxes inherent to a property, in addition to the rent. In exchange, the rent will be significantly lower than in a Gross Lease, where the tenant is only responsible for the rent.

Most of the laws that cover residential leases in South Dakota cover Commercial Leases as well. South Dakota Lease Laws can be in South Dakota Codified Laws, Title 43-32-1 to 43-32-32