Commercial Tenancy Agreement Template for Philippines

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Key Requirements PROMPT example:

Commercial Tenancy Agreement

"I need a Commercial Tenancy Agreement for a retail space in a Manila shopping center, starting March 1, 2025, with specific provisions for operating hours, signage rights, and a percentage rent structure based on monthly sales."

Document background
The Commercial Tenancy Agreement is a vital legal instrument used in the Philippines when a property owner (lessor) agrees to lease commercial space to a business tenant (lessee). This document, governed by Philippine law including the Civil Code and Local Government Code, is essential for establishing clear terms in commercial property relationships. It covers crucial elements such as rental terms, property use restrictions, maintenance obligations, and compliance requirements with local regulations. The agreement is particularly important in the Philippine context where commercial property relationships must navigate both national and local government requirements. It serves as a comprehensive framework for managing commercial lease arrangements while ensuring compliance with Philippine business practices and property laws.
Suggested Sections

1. Parties: Identification of the Lessor and Lessee with complete legal names and addresses

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

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

4. Demise: The formal granting of the lease and specification of the premises

5. Term: Duration of the lease, commencement date, and expiry date

6. Rent and Other Payments: Rental amount, payment schedule, security deposit, advance rent, and other financial obligations

7. Use of Premises: Permitted use of the premises and any restrictions

8. Maintenance and Repairs: Responsibilities of both parties regarding maintenance, repairs, and improvements

9. Utilities and Services: Provisions regarding utility connections, payments, and building services

10. Insurance: Required insurance coverage for both parties

11. Assignment and Subletting: Terms governing the transfer of lease rights or subletting

12. Lessor's Covenants: Obligations and warranties of the property owner

13. Lessee's Covenants: Obligations and warranties of the tenant

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

15. Termination: Conditions and procedures for lease termination

16. Governing Law: Specification of Philippine law as governing law

17. Dispute Resolution: Procedures for resolving disputes

18. Notices: Method and addresses for formal communications

19. General Provisions: Miscellaneous legal provisions including severability, entire agreement, and amendments

Optional Sections

1. Fit-out Period: Terms for initial renovation period, used when premises require tenant improvements

2. Operating Hours: Specific provisions about business hours, needed for mall locations or multi-tenant buildings

3. Common Areas: Rules for shared facilities, needed in multi-tenant properties

4. Signage Rights: Terms for external and internal signage, important for retail premises

5. Environmental Compliance: Special environmental obligations, needed for industrial or manufacturing use

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

7. Option to Renew: Terms for lease renewal, included when agreed by parties

8. Right of First Refusal: Tenant's right to match purchase offers, included when negotiated

9. Exclusivity Clause: Restrictions on competing businesses, relevant for retail locations

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of premises including floor plans and measurements

2. Schedule 2 - Rent Schedule: Detailed breakdown of rent, escalation rates, and payment terms

3. Schedule 3 - Condition Report: Documentation of premises condition at commencement

4. Schedule 4 - House Rules: Building rules and regulations

5. Schedule 5 - Fit-out Guidelines: Technical specifications for tenant improvements

6. Schedule 6 - Service Charges: Breakdown of additional charges and building services

7. Schedule 7 - Handover Inventory: List of fixtures and fittings included in the lease

8. Appendix A - Required Permits: List of necessary government permits and licenses

9. Appendix B - Insurance Requirements: Detailed insurance specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Retail

Office Space

Industrial

Hospitality

Food and Beverage

Healthcare

Manufacturing

Logistics

Professional Services

Entertainment

Education

Technology

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Facilities Management

Asset Management

Risk Management

Property Management

Business Development

Administration

Relevant Roles

Property Manager

Real Estate Manager

Business Owner

Commercial Director

Facilities Manager

Legal Counsel

Chief Financial Officer

Operations Manager

Leasing Manager

Asset Manager

Compliance Officer

Real Estate Director

Business Development Manager

Store Manager

Regional Manager

Corporate Secretary

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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