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.

Laws vary from state to state, but a commercial landlord’s ability to shut off a tenant’s utilities is usually determined by the terms of the lease agreement and the state’s contract law—to determine, for example, if any breach of the lease agreement by the tenant was a material breach that might justify an extreme measure such as shutting off the utilities.

Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a commercial landlord who shuts off a tenant’s utilities because the tenant is a few days late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing.

In Washington State, commercial tenants are indeed considered more sophisticated than residential tenants and are thus afforded fewer legal protections under the law. Commercial tenants are expected to be diligent in reading, understanding, and negotiating the terms of their lease agreements. The specifics of a commercial lease, including the landlord's ability to shut off utilities, are primarily governed by the lease itself and Washington's contract law. While the lease agreement outlines the rights and obligations of each party, state contract law also enforces an implied duty of good faith and fair dealing in the execution of the lease. This means that a commercial landlord's decision to shut off a tenant's utilities for minor infractions, such as being a few days late on rent, could potentially be seen as a breach of this duty. However, the actual outcome would depend on the specific circumstances and the terms of the lease agreement. Commercial tenants are encouraged to seek the advice of an attorney to ensure their interests are adequately protected in the lease.