A business that leases real estate and improvements (buildings, etc.) in the form of space for offices, a warehouse, a restaurant, a nail or hair salon, a clothing store, a coffee shop, or other commercial (nonresidential) space will usually be required to sign a written contract known as a commercial lease agreement.

The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.

Because the law does not provide a commercial tenant with many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.

As with most other questions, a commercial tenant's ability to break or terminate a lease before the end of the lease term depends primarily on the terms of the written lease agreement.

In California, a business that leases commercial space—such as offices, warehouses, or retail locations—must typically enter into a written commercial lease agreement. Unlike residential tenants, commercial tenants are presumed to have greater knowledge and sophistication in business matters, and therefore, they receive fewer legal protections under the law. It is crucial for a commercial tenant to thoroughly review, understand, and negotiate the terms of a commercial lease agreement before signing. The lease agreement's provisions can significantly affect the tenant's business operations and financial health. The ability to terminate a commercial lease early is largely determined by the specific clauses within the lease agreement itself. Therefore, it is often advisable for a commercial tenant to consult with an attorney to ensure that their interests are adequately protected and that they fully comprehend the implications of the lease terms.