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 Washington State, businesses entering into commercial lease agreements for various types of spaces, such as offices, warehouses, or retail stores, are expected to engage in these contracts with a higher degree of sophistication compared to residential tenants. Washington's laws governing commercial leases are primarily based on general contract law principles, as commercial tenants are not afforded the same level of statutory protections as residential tenants. It is crucial for a business, as a lessee, to thoroughly review, understand, and negotiate the terms of a commercial lease agreement before signing. This is because each clause can significantly affect the business's operations and financial health. While there may be some state-specific statutes that address commercial tenancies, the onus is on the commercial tenant to ensure that their interests are adequately protected in the lease agreement. An attorney can provide valuable assistance in reviewing and negotiating commercial leases to safeguard a business's interests.