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 knowledge and bargaining power, and thus, they receive fewer legal protections under the law. Arkansas law primarily relies on general contract principles to govern commercial leases, and while there may be some statutes that apply to both residential and commercial tenancies, commercial tenants are largely responsible for negotiating the terms of their leases. It is crucial for a commercial tenant to thoroughly review, understand, and negotiate the lease agreement to secure terms that safeguard their business interests, as the lease can significantly affect their business operations and financial health. An attorney can provide valuable assistance in reviewing and negotiating a commercial lease to ensure that the tenant's rights and interests are adequately protected.