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 Idaho, commercial lease agreements are governed primarily by contract law principles, as commercial tenancies are considered a form of contract between the landlord (lessor) and the tenant (lessee). Unlike residential tenants, commercial tenants are not afforded the same level of statutory protections. Idaho does not have a comprehensive set of laws specifically tailored to commercial leases, so the terms of the lease agreement largely dictate the rights and obligations of the parties involved. It is crucial for a business entering into a commercial lease to thoroughly review and negotiate the terms of the lease, as these terms can significantly affect the business's operations and financial health. An attorney can be instrumental in helping to understand, negotiate, and draft a lease agreement that aligns with the business's interests and needs. Since commercial tenants are expected to be more sophisticated, they bear a greater responsibility to ensure that the lease terms are favorable and to seek legal advice when necessary.