REALWorld Law

Commercial leases

Length of leases

What is the usual length of each type of commercial lease?

United States

United States

The duration of commercial leases vary on a case by case basis and can be any length of time, but typically range from three to ten years. Longer term leases tend only to be encountered in the context of ‘ground leases’ and ‘net leases’. In ‘net leases’ the tenant is responsible for the cost of operating, insuring and paying taxes on the real property. A ‘ground lease’ is a sub-specie of net lease where the tenant is given rights to develop a parcel of land leased to it.