Nebraska Commercial Lease Requirements and Key Clauses

Commercial leases in Nebraska are sophisticated legal instruments that require careful drafting. Unlike residential leases governed by the URLTA, commercial leases are custom contracts where virtually every term is negotiable.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a qualified Nebraska attorney for advice specific to your situation. Information last verified: March 2026.

Writing Requirements

Statute of Frauds

Under Nebraska's Statute of Frauds (Neb. Rev. Stat. § 36-105), any lease for a term of more than one year must be in writing and signed by the party to be charged. An oral commercial lease for more than one year is unenforceable.

Even for shorter leases, a written agreement is essential for clarity and dispute prevention.

Essential Commercial Lease Clauses

Premises Description

A precise description of the leased premises, including square footage, floor plan, and any shared or common areas.

Use Clause

Specifies the permitted business activities. Restrictive use clauses (e.g., "retail sales of electronics only") protect the landlord's ability to curate a tenant mix in multi-tenant properties.

Rent and Escalation

Clearly defines base rent, the payment schedule, and the escalation mechanism (fixed percentage, CPI, or FMV).

Assignment and Subletting

Most commercial leases require the landlord's prior written consent for any assignment or subletting. The lease should specify whether consent can be unreasonably withheld and whether the landlord is entitled to a share of any sublease profit.

Insurance Requirements

The tenant is typically required to carry:

• Commercial general liability insurance.
• Property insurance for tenant improvements.
• Business interruption insurance.
• Workers' compensation insurance.

Indemnification

Cross-indemnification clauses allocate liability between landlord and tenant for injuries or damages occurring on the premises.

Default and Remedies

The lease should clearly define:

• What constitutes a default.
• Notice and cure periods.
• Landlord's remedies (termination, acceleration of rent, re-entry, damages).
• Tenant's remedies.

Holdover Provisions

Specifies the rent (often 150-200% of the existing rent) and terms applicable if the tenant remains after lease expiry without a new agreement.

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Back to Nebraska Commercial Landlord-Tenant Laws Overview.