What is the distinction between a “commercial” and a “residential” lease? How do the differences in use of the leased property impact the terms of the lease? In a commercial lease agreement, should the law seek to protect the interests of the commercial tenant more than the interests of the commercial landlord? Why or why not?
Sample Solution
The distinction between a commercial and residential lease is that a commercial lease usually covers the rental of space used for business purposes while a residential lease covers the rental of space intended for use as housing. Commercial leases tend to be more complex than residential leases due to their longer terms and higher financial obligations, such as taxes, insurance, utilities, and maintenance costs. Furthermore, they often contain additional provisions regarding ownership of intellectual property or equipment housed within the leased premises.