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Commercial Real Estate Lease Agreement for Malaysia

Commercial Real Estate Lease Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes the terms and conditions for leasing commercial real estate property between a landlord and tenant. This agreement incorporates provisions compliant with the National Land Code 1965 and relevant Malaysian commercial property legislation, detailing rental terms, duration, maintenance responsibilities, and other critical aspects of the commercial tenancy relationship. The document includes specific provisions for Malaysian business practices and local commercial property regulations, ensuring alignment with both federal and state-level requirements.

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What is a Commercial Real Estate Lease Agreement?

The Commercial Real Estate Lease Agreement is a crucial document used in Malaysian business transactions for establishing legally binding terms between property owners and commercial tenants. This agreement is essential when any business entity seeks to lease commercial space in Malaysia, whether for retail, office, industrial, or other commercial purposes. The document must comply with Malaysian property law, particularly the National Land Code 1965 and relevant state-level legislation. It covers all essential aspects of the lease relationship, including financial terms, maintenance obligations, permitted use, and dispute resolution mechanisms. The agreement should be customized based on the specific type of commercial property, tenant requirements, and local authority regulations in the relevant Malaysian state or territory.

What sections should be included in a Commercial Real Estate Lease Agreement?

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

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

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

4. Demised Premises: Detailed description of the leased property, including boundaries and included facilities

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

6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and review mechanisms

7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit

8. Utilities and Service Charges: Responsibilities for utility payments and service charges

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

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

11. Insurance: Insurance requirements for both parties

12. Landlord's Covenants: Obligations and promises of the landlord

13. Tenant's Covenants: Obligations and promises of the tenant

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

15. Termination: Conditions and procedures for early termination

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

17. Execution: Signature blocks and execution details

What sections are optional to include in a Commercial Real Estate Lease Agreement?

1. Option to Renew: Terms for lease renewal - include when the parties want to pre-agree renewal terms

2. Assignment and Subletting: Rules regarding transfer of lease rights - include when subletting might be permitted

3. Alterations and Improvements: Terms for making changes to the premises - include for premises likely to need modification

4. Break Clause: Conditions for early termination - include when parties want flexibility to end early

5. Green Lease Provisions: Environmental and sustainability requirements - include for green buildings or when parties have sustainability goals

6. Shared Facilities: Rules for common areas - include when premises are part of larger building/complex

7. Signage Rights: Terms for external and internal signage - include for retail or branded premises

8. Covid-19/Force Majeure Provisions: Special provisions for pandemics or other force majeure events - include based on risk assessment

What schedules should be included in a Commercial Real Estate Lease Agreement?

1. Schedule 1 - Floor Plans: Detailed plans showing the demised premises and common areas

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charges: Breakdown of service charges and calculation method

4. Schedule 4 - Repair and Maintenance Responsibilities: Detailed allocation of repair and maintenance duties

5. Schedule 5 - Building Rules and Regulations: Specific rules governing the use of the building

6. Schedule 6 - Rent Review Provisions: Detailed mechanism for rent reviews

7. Schedule 7 - Permitted Alterations: Pre-approved alterations and improvement works

8. Appendix A - Form of Rent Guarantee: Standard form for any required guarantees

9. Appendix B - Handover Condition Report: Detailed report of premises condition at commencement

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions



















































Clauses








































Relevant Industries

Retail

Office Space

Industrial

Hospitality

Healthcare

Banking and Financial Services

Technology

Entertainment

Logistics and Warehousing

Food and Beverage

Professional Services

Education

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Risk and Compliance

Property Management

Business Development

Administrative

Corporate Secretarial

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Finance Director

Asset Manager

Lease Administrator

Risk Manager

Compliance Officer

Company Secretary

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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