The Commercial Real Estate Lease Agreement is a fundamental document used in German commercial property transactions to establish a legally binding relationship between a landlord and tenant for the use of commercial space. This agreement is essential when any business entity seeks to lease commercial property in Germany, whether for office, retail, industrial, or other commercial purposes. The document must comply with German Civil Code (BGB) requirements and incorporate specific provisions required under German commercial tenancy law. It includes detailed terms regarding rent, operating costs, maintenance obligations, and use restrictions, while addressing specific German legal requirements such as energy efficiency standards and VAT elections. The agreement serves as the primary reference point for managing the ongoing landlord-tenant relationship and resolving any disputes that may arise during the lease term.

1. Parties: Identification and details of the landlord and tenant, including full legal names, registration details for companies, and addresses

2. Background: Context of the lease agreement and brief description of the property and intended use

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the leased premises, including address, size, and designated use

5. Term and Commencement: Duration of the lease, commencement date, and any renewal options

6. Rent and Payment Terms: Base rent amount, payment schedule, method of payment, and rent review provisions

7. Operating Costs and Utilities: Allocation of operating costs (Betriebskosten) and utilities between parties

8. Security Deposit: Amount, form, and conditions of the security deposit

9. Use of Premises: Permitted use of the property and any restrictions

10. Maintenance and Repairs: Responsibilities of each party regarding maintenance, repairs, and renovations

11. Insurance: Required insurance coverage for both parties

12. Alterations and Improvements: Rules and procedures for making changes to the premises

13. Landlord's Rights and Obligations: Specific rights and duties of the landlord

14. Tenant's Rights and Obligations: Specific rights and duties of the tenant

15. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises

16. Default and Remedies: Events of default and corresponding remedies

17. Termination: Grounds for termination and notice requirements

18. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

19. Notices: Process and addresses for formal communications between parties