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Alabama Commercial Lease Agreement (2026)

Lease retail, office or industrial space: gross, modified gross or triple-net with pro-rata pass-throughs, rent escalation, renewal options, TI allowance, insurance, default and holdover terms, plus your state's deposit rule, statutory disclosures, landlord's lien, cure periods, rent taxes and signing formalities.

Updated September 11, 2026≈ 14 minReviewed against Ala. Code § 35-9-6 · Ala. Code § 35-9-60 · Ala. Code § 35-4-6
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Sample first page of the Commercial Lease Agreement: title block and opening sections with blanks to fillView larger
What you'll get

Sample first page of the Commercial Lease Agreement. Your answers fill in the blanks; the clauses required in Alabama are added automatically.

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Sample first page of the Commercial Lease Agreement: title block and opening sections with blanks to fill

Sample first page of the Commercial Lease Agreement. Your answers fill in the blanks; the clauses required in Alabama are added automatically.

This preview updates as you type. Blank fields show as ____ .

What this document covers

  • Landlord, tenant and optional personal guarantor
  • Retail, office or industrial premises with rentable area and pro-rata share
  • Term, rent commencement and renewal options
  • Base rent with fixed or CPI escalation
  • Gross, modified gross or triple-net (NNN) pass-throughs
  • Security deposit under the state rule
  • Permitted and exclusive use, hours, ADA compliance
  • Tenant improvements and maintenance split
  • Assignment, subletting, insurance and indemnity
  • Default, remedies, landlord's lien and holdover
  • SNDA, estoppel, relocation and broker disclosure
  • State disclosures, exhibits and guaranty

Alabama rules that this document follows

Commercial security depositVaries — No statute — amount and return terms as the lease providesSource: No statute governs security deposits for non-residential leases; Ala. Code § 35-9A-201 applies to residential tenancies only
Default notice before evictionVaries — 10 days' notice for nonpayment; 10 days to cure other breaches (lease may vary)Source: Ala. Code § 35-9-6
Landlord's lien on tenant propertyVaries — Statutory landlord's lien on the tenant's property on the premises; may be waived in the leaseSource: Ala. Code § 35-9-60
Tax on commercial rentVaries — None
Notary / recording for long leasesVaries — No notary for validity; record leases over 20 years (memorandum permitted)Source: Ala. Code § 35-4-6
Required lease disclosuresNone specific to commercial leasesSource: Ala. Code tit. 35, ch. 9

Rules current as of 2026-09-14. Statutes change; verify before relying on them.

How to use this Commercial Lease Agreement in Alabama

Start with the exact legal names of both entities and decide on a personal guaranty. Enter the rentable area of the premises and the building — that ratio becomes the tenant's share of taxes, insurance and CAM in a modified gross or NNN lease — then set the term, rent commencement, renewal options and escalation. Choose the maintenance split and insurance limits deliberately: they are the clauses that cost money later.

Answer the state-disclosure questions, review the cure periods (pre-filled with Alabama's statutory figures where they exist) and decide whether to waive the landlord's lien for the tenant's equipment lender. Record a memorandum of lease for terms over 20 years (Ala. Code § 35-4-6). Both parties sign with name and title; attach the floor plan, work letter, guaranty and rules.

Frequently asked questions

Is a commercial security deposit regulated in Alabama?

No — Alabama has no statute on commercial security deposits (residential rules do not apply), so the amount, use and return are whatever the lease says; this lease sets a 30-day return with an itemized statement.

How much notice must I give a commercial tenant before eviction in Alabama?

Alabama requires 10 days' written notice before an eviction action for nonpayment and 10 days for other breaches (Ala. Code § 35-9-6); the lease may set a different contractual cure period, and this lease pre-fills it with the statutory figure.

Is there a tax on commercial rent in Alabama?

No — commercial rent is not subject to sales or occupancy tax in Alabama.

Does a commercial lease need a notary or witnesses in Alabama?

No notary is needed for validity; a lease over 20 years should be recorded (usually as a memorandum of lease, which needs acknowledgment) to bind future buyers and lenders (Ala. Code § 35-4-6).

What is the difference between a gross and a triple-net (NNN) lease?

In a gross lease the base rent covers taxes, insurance and common-area maintenance, so the landlord bears cost increases. In a triple-net lease the tenant pays its pro-rata share of those three items on top of base rent, reconciled annually against actual costs. Modified gross sits between: the tenant pays only increases over a base year. This lease drafts all three, and in Alabama the landlord also keeps a statutory lien on the tenant's goods (Ala. Code § 35-9-60) unless waived.

Other names

  • commercial lease
  • business lease agreement
  • retail lease
  • office lease
  • industrial lease
  • warehouse lease
  • triple net lease
  • NNN lease
  • gross lease
  • storefront lease

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FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.