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 as 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.

The law governing commercial leases varies from state to state but generally consists of a state's contract law (as applied to the lease agreement)—and in some states, includes the statutes enacted by the state's legislature that specifically apply to commercial tenancies, or that generally apply to both residential and commercial tenancies.

In Arkansas, a business that intends to lease commercial space—such as offices, warehouses, or retail locations—will typically enter into a commercial lease agreement. Unlike residential tenants, commercial tenants are presumed to have greater expertise and bargaining power, and therefore, Arkansas law does not afford them the same level of statutory protections. Commercial lease agreements are governed primarily by Arkansas contract law, and the specific terms of the lease are negotiable between the landlord and the tenant. It is crucial for the tenant to thoroughly review and understand the lease terms, as they can significantly affect the business's operations and financial health. While there may be some statutes that address commercial tenancies, the protections are not as extensive as those for residential leases. Therefore, it is often advisable for a commercial tenant to seek the advice of an attorney to negotiate favorable lease terms and to ensure that their interests are adequately protected.