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Commercial Property Management Agreement Template
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Commercial Property Management Agreement Template
This Commercial Property Management Agreement (the “Agreement”) is entered into as of [Effective Date] by and between:
Owner: [Owner Full Legal Name], address: [Address] (“Owner”).
Manager: [Manager/Company Legal Name], address: [Address] (“Manager”).
Owner and Manager may be referred to individually as a “Party” and collectively as the “Parties.”
1. Property
1.1 Property Name (Optional): [Building/Center Name].
1.2 Property Address: [Full Address].
1.3 Property Type: ☐ Office ☐ Retail ☐ Industrial ☐ Mixed-use ☐ Other: [Type].
1.4 Leasable Area (Optional): [Sq ft].
1.5 Tenant List (Optional): Attached as Exhibit A.
2. Appointment and Term
2.1 Appointment. Owner appoints Manager as the property manager for the Property.
2.2 Start Date: [Start Date].
2.3 Term (Select One): ☐ Month-to-month ☐ Fixed term until [End Date].
2.4 Renewal (Optional): ☐ Auto-renew ☐ Renewal by written agreement.
3. Manager Duties
3.1 Leasing and Marketing (As Authorized by Owner):
☐ Market vacancies ☐ Conduct tours ☐ Collect and review applications ☐ Negotiate LOIs ☐ Prepare leases for Owner approval ☐ Execute leases on Owner’s behalf (if authorized)
3.2 Rent Collection and Billing:
☐ Collect base rent ☐ Bill and collect CAM/operating expenses (if applicable) ☐ Track delinquencies ☐ Send payment reminders and notices as permitted
3.3 Operations and Maintenance:
☐ Manage vendors ☐ Routine maintenance ☐ Preventive maintenance ☐ Emergency response ☐ Maintain service contracts
3.4 Budgeting and Reporting:
☐ Prepare annual budget ☐ Monthly/quarterly reports ☐ Maintain income/expense records ☐ Coordinate year-end reconciliations
3.5 Compliance (Operational). Coordinate routine compliance tasks such as inspections or postings, as agreed (without providing legal advice).
4. Owner Responsibilities
4.1 Owner will fund operating expenses and reserves as needed.
4.2 Owner will maintain required property insurance and pay mortgage and taxes unless otherwise stated.
4.3 Owner will make final decisions on major capital projects unless delegated.
5. Leasing Authority and Approvals
5.1 Owner Approval Required For:
New leases and renewals unless pre-approved parameters apply
Tenant improvement allowances above $[Amount]
Rent concessions above $[Amount] or [__] months
Lease term longer than [__] years
Material lease amendments
5.2 Leasing Parameters (Optional): Minimum rent $[]/sq ft, minimum term [] years, deposit requirements: [Details].
6. CAM / Operating Expenses (Optional)
6.1 If the leases allow, Manager will bill tenants for CAM/operating expenses and perform reconciliations according to lease terms.
6.2 Manager will keep reasonable records for CAM charges and provide reports to Owner.
7. Money Handling and Accounts
7.1 Rents and other receipts will be deposited into: ☐ Owner account ☐ Manager trust/operating account ☐ Other: [Details].
7.2 Manager may pay authorized expenses from operating funds.
7.3 Reserve: Owner will maintain a reserve of $[Amount] for routine expenses.
8. Fees and Compensation
8.1 Management Fee: ☐ []% of gross collected revenue ☐ $[Flat fee]/month.
8.2 Leasing Commission (Optional): []% of base rent or $[], payable: [When].
8.3 Renewal Fee (Optional): $[Amount] per renewal.
8.4 Project Management Fee (Optional): $[Amount] or []% for capital projects/tenant improvements.
8.5 Other Fees (Optional): [List].
9. Repairs, Spending Limits, and Capital Projects
9.1 Repair Approval Limit: Manager may approve repairs up to $[Amount] without Owner approval.
9.2 Emergency Repairs: Manager may authorize emergency repairs necessary to protect persons or property.
9.3 Capital Projects: Capital improvements require Owner approval, unless otherwise stated.
10. Insurance and Liability
10.1 Owner will maintain property insurance.
10.2 Manager will maintain: ☐ general liability ☐ E&O ☐ other: [Types].
10.3 Manager is not responsible for tenant defaults beyond reasonable collection efforts.
11. Termination
11.1 Either Party may terminate with [] days’ written notice.
11.2 Upon termination, Manager will deliver keys, records, and remaining funds within [] days after final accounting.
12. Notices
12.1 Notices must be in writing and delivered to the addresses above.
13. Governing Law
13.1 This Agreement is governed by the laws of [State/Country].
14. Entire Agreement
14.1 This Agreement is the entire agreement regarding commercial property management.
Signatures
By signing below, the Parties agree to this Commercial Property Management Agreement as of the Effective Date.
Owner: [Owner Full Legal Name]
Date: [Date]
Signature: ___________________________
Manager: [Manager/Company Legal Name]
Name/Title: [Signer Name, Title]
Date: [Date]
Signature: ___________________________
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Easy-to-understand jargon
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Details
Learn more about
Commercial Property Management Agreement Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
COMMERCIAL PROPERTY MANAGEMENT AGREEMENT TEMPLATE FAQ
What is a commercial property management agreement?
A Commercial Property Management Agreement is a contract between a commercial property owner and a property manager. It defines responsibilities such as marketing and negotiating commercial leases, collecting rent and CAM charges (if applicable), coordinating repairs, managing vendors, and providing financial reporting.
How is commercial management different from residential management?
Commercial properties often involve longer lease terms, tenant improvements, CAM reconciliations, insurance requirements, vendor oversight, and more detailed reporting. This template includes sections for CAM/operating expenses, lease approvals, and spending authority.
What should be included?
Key terms include: property description, manager duties, leasing authority, tenant relations, maintenance responsibilities, budgeting and reporting, fee structure, expense/repair approval limits, handling of tenant improvements, insurance, and termination.
How are fees typically structured?
Common fees include a monthly management fee (percentage of collected revenue or flat fee), leasing commissions, renewal fees, construction/tenant improvement coordination fees, and project management fees. This template includes each common fee type with customizable fields.
What are CAM charges and reconciliations?
CAM (Common Area Maintenance) charges are amounts tenants pay for shared property expenses. Reconciliations compare estimated charges to actual costs for a period. This template includes an optional CAM section, but accounting practices should follow the lease terms.
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