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 North Dakota, commercial lease agreements are governed primarily by contract law principles, as commercial tenancies are considered a form of contract between the landlord and the tenant. Unlike residential tenants, commercial tenants are not afforded the same level of statutory protections. This means that the terms of the commercial lease are largely determined by the negotiations between the landlord and the tenant. It is crucial for the tenant to thoroughly review and understand the lease agreement, as it can significantly affect their business operations and financial health. Tenants are expected to be knowledgeable and are encouraged to seek the advice of an attorney to negotiate favorable terms or clarify any complex provisions within the lease. While there may be some state statutes that apply to both residential and commercial tenancies, commercial tenants should not rely on these for protection but rather ensure that their lease agreements explicitly address their rights and obligations.