Connecticut Commercial Lease Agreement

Yes. Connecticut imposes its 6.35% sales and use tax on most commercial space rentals. Landlords are required to register as retailers, collect the tax from tenants, and remit it to the Department of Revenue Services. This is an important cost consideration that should be addressed explicitly in the lease.

Commercial leases for 2 years or more should be recorded in the land records of the town where the property is located. Recording protects the tenant against a subsequent purchaser or mortgagee who might not otherwise have notice of the lease. Short-term leases typically do not need to be recorded.

Common Area Maintenance charges in Connecticut commercial leases should clearly define: what expenses are included (and excluded), the base year or stop amount, audit rights, and the cap on annual CAM increases. Connecticut courts strictly enforce the lease language, so imprecise CAM provisions frequently lead to disputes.

Both landlords and tenants may have obligations under the Americans with Disabilities Act to make commercial premises accessible. The lease should specify which party is responsible for ADA compliance and upgrades. Common areas are typically the landlord's responsibility; interior improvements are often the tenant's.