New Jersey Commercial Lease Review
New Jersey is unusual in that its security deposit statute is not written only for homes. The Act covers money deposited on a lease for the use or rental of real property, which may bring commercial deposits within its trust and interest rules, although that reach is not clearly settled. The state’s forcible entry statute also restricts self-help. A New Jersey review should check how the lease handles the deposit and what it says about re-entry.
Does New Jersey regulate my commercial security deposit?
N.J.S.A. 46:8-19 applies to money deposited or advanced on a lease or license for the use or rental of real property, without limiting itself to residential space. The deposit stays your property, must be held in trust, must not be mingled with the landlord’s own funds, and must be placed in an insured interest-bearing account. Interest belongs to the tenant and is paid in cash or credited to rent. If the holder fails to comply, the Act lets the tenant apply the deposit, plus interest at 7% a year, toward rent. The Act excludes owner-occupied buildings with two or fewer rental units unless the tenant opts in by notice, and its reach to commercial space is not clearly settled, so confirm whether yours is covered. If it is, ask in writing at signing where the deposit is held and at what rate, and ask again if the building is sold so you know who now holds your money. Keep the receipt for the original payment with your lease, since it is the simplest proof of what was deposited.
Can a New Jersey landlord simply take the space back?
N.J.S.A. 2A:39-1 prohibits entering and holding real property except where entry is given by law, and then only peaceably. For premises occupied solely as a residence, a lockout without legal process is an offense; for commercial space, the test is whether the entry is lawful and peaceable. A lease clause granting a broad right of re-entry should be narrowed to require court process, or at least written notice and an expired cure period first.
New Jersey sources checked 2026-10-09: N.J.S.A. 46:8-19 · N.J.S.A. 46:8-26 · N.J.S.A. 2A:39-1. Laws change; confirm the current rule before relying on it.
Frequently asked questions
Is my New Jersey landlord required to pay interest on my commercial deposit?
If the Security Deposit Act covers your property, yes. Under N.J.S.A. 46:8-19, interest earned belongs to the person who made the deposit and must be paid in cash or credited toward rent. Ask the landlord which bank holds the deposit and what rate it earns, and get that written into the lease.
Should I accept a re-entry clause in a New Jersey commercial lease?
Narrow it. New Jersey’s forcible entry statute allows entry only where the law permits it and only in a peaceable manner. A clause that lets the landlord change the locks on any default invites a dispute. Ask that re-entry require a court order, or at least written notice and an expired cure period.
Signing a commercial lease in New Jersey?
Upload the lease and any guaranty. Every page is read, rent and escalations are totalled over the term, and each risky clause is explained in plain English with what to ask the landlord for.
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General information, not legal advice, and not reviewed by an attorney. Confirm with a New Jersey attorney before relying on it.