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 Alabama, a business that intends to lease commercial space for various purposes such as offices, warehouses, or retail stores will enter into a commercial lease agreement. Unlike residential tenants, commercial tenants are considered more knowledgeable and are expected to be proactive in understanding and negotiating the terms of their lease agreements. Alabama law does not provide the same level of protection to commercial tenants as it does to residential tenants, which means it is crucial for the business (lessee) to carefully review and negotiate the lease terms to safeguard their interests. The regulation of commercial leases in Alabama is primarily governed by the state's contract law, and while there may be specific statutes that apply to commercial tenancies, these are less protective than those for residential tenancies. Therefore, it is often advisable for a business to seek the advice of an attorney to ensure that the lease agreement aligns with their operational needs and financial considerations.