Commercial Lease Agreement - Template, Sample Form Pro · US-law
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COMMERCIAL LEASE AGREEMENT
State of ________
This Commercial Lease Agreement (hereinafter "Lease") is entered into and made effective as of the date set forth at the end of this document (the "Effective Date"), by and between the Lessor, ________, a ________ with a principal place of business at ________ (hereinafter referred to as "Landlord"), and the Lessee, ________, a ________ with a principal place of business at ________ (hereinafter referred to as "Tenant"). Landlord and Tenant are sometimes referred to herein individually as a "Party" and collectively as the "Parties." In consideration of the mutual covenants set forth herein, the Parties agree as follows:
§ I. PREMISES.
1. Landlord, in consideration of the lease payments described in this Lease, leases to Tenant, and Tenant leases from Landlord, the property (hereinafter referred to as the "Premises") described as follows:
________
2. The Premises is located at the following address:
________
3. The Premises shall be used and occupied by Tenant solely for the following purpose, and for no other purpose without the prior written consent of Landlord:
________
§ II. SPACE RENTED.
4. The space described above comprises approximately ________ rentable square feet.
§ III. TERM.
5. The term of this Lease (the "Term") shall commence on ________ at 12:01 A.M. and shall continue until its natural termination on ________ at 11:59 P.M., unless sooner terminated or extended in accordance with the provisions of this Lease. Tenant shall notify Landlord in advance of any anticipated extended absence from the Premises.
§ IV. LEASE PAYMENTS.
6. Tenant shall pay to Landlord, in lawful money of the United States, ________ installments of $________ (the "Rent"), which equates to $________ per square foot ($/SF), without prior demand and without any deduction, set-off, or counterclaim except as expressly provided herein.
7. Rent shall increase by ________% (________ percent) on an annual basis, effective on each anniversary of the commencement date of the Term.
8. Rent shall be payable in advance on the ________ day of each calendar month.
9. Lease payments shall be made to Landlord at the following address (or such other address as Landlord may designate in writing):
________
10. The payment address may be changed at the discretion of Landlord, and Tenant shall be informed of any such change by written notice.
11. The first full Rent payment under this Lease shall be due on ________. No holidays, special events, or weekends shall excuse Tenant's obligation to pay Rent timely as described in this Lease. If the Term commences or ends on a day other than the first or last day of a calendar month, Rent for such partial month shall be prorated on a per diem basis.
§ V. LATE PAYMENTS.
12. For any Rent payment that is not received by Landlord within ________ day(s) of its due date, Tenant shall pay a late fee equal to ________% of the outstanding Rent payment. Any amount not paid when due shall further bear interest at the lesser of ________% per annum or the maximum rate permitted by applicable law, from the due date until paid. Such late fees and interest shall be deemed additional rent.
§ VI. SECURITY DEPOSIT.
13. Upon the signing of this Lease, Tenant shall pay to Landlord, in trust, a security deposit of $________ (the "Security Deposit") to be held for the reasonable cleaning or repair of damages to the Premises upon the expiration or termination of this Lease, or in case of default by Tenant, as provided by law.
14. Tenant agrees to be liable to Landlord at the expiration or termination of this Lease for all damages to the Premises, except ordinary wear and tear. Landlord may hold the Security Deposit in a non-interest-bearing account, in which case no interest is due to Tenant. Landlord may otherwise elect to hold the Security Deposit in an interest-bearing account and allow Tenant to receive certain interest funds, if and to the extent required by applicable law. In all events, Tenant shall not be permitted to apply the Security Deposit toward any Rent obligation.
15. In the event of a sale or assignment of the Premises or this Lease by Landlord, the Security Deposit shall be transferred to the new owner or assignee, and Landlord shall be released from liability to Tenant for the return of the Security Deposit upon such transfer.
16. Deductions from the Security Deposit may be made for the following reasons (this list is illustrative only and not exhaustive): unpaid rent or utilities, late fees, cleaning, key replacement, repair of damage beyond ordinary wear and tear, and/or removing abandoned property. Landlord shall return the Security Deposit, less any lawful deductions, together with an itemized written statement of such deductions, within the time period required by applicable law following the termination of this Lease and Tenant's surrender of the Premises.
§ VII. POSSESSION.
17. Tenant shall be entitled to possession on the first day of the Term and shall yield possession to Landlord on the last day of the Term, unless the Parties agree in writing otherwise. At the end of the Term, Tenant shall remove all goods and effects and peaceably surrender the Premises in as good a condition as when first delivered to Tenant, except for ordinary wear and tear occurring during Tenant's possession.
§ VIII. EXCLUSIVITY.
18. Landlord shall not, directly or indirectly, through any agent, employee, or other representative, lease any space within the property (other than the Premises described in this Lease), or permit the use or occupancy of any such space whose primary business activity is in, or may result in, competition with Tenant's primary business activity, without an express written agreement signed by both Parties. Landlord hereby grants Tenant the exclusive right to conduct its primary business activity on the property.
§ IX. STORAGE.
19. Tenant shall be permitted to store items of personal property in a designated storage area at the Premises during the Term. Landlord shall not be held liable for any loss of or damage to such stored items, except to the extent caused by Landlord's negligence or willful misconduct.
§ X. PROPERTY INSURANCE.
20. Landlord and Tenant shall each maintain appropriate insurance for their respective interests in the Premises and the property located thereon, in amounts to be agreed upon by the Parties. Landlord shall be named as an additional insured party on any and all such policies maintained by Tenant. Tenant shall deliver to Landlord certificates evidencing adequate insurance in force, issued by companies reasonably satisfactory to Landlord. Such policies shall provide that Landlord receive advance written notice from the insurer prior to any cancellation or termination. Tenant shall also maintain any other insurance Landlord reasonably requires for the protection of Landlord's interest in the Premises, and Tenant shall be responsible for maintaining property insurance on its own property.
§ XI. LIABILITY INSURANCE.
21. Tenant shall maintain commercial general liability insurance covering the Premises in an amount of not less than $________ per occurrence. Tenant shall deliver to Landlord certificates evidencing that sufficient insurance is in force, issued by companies reasonably satisfactory to Landlord. Such policies shall provide that Landlord receive advance written notice from the insurer prior to any cancellation or termination.
22. To the extent permitted by their respective insurance policies, Landlord and Tenant each waive any right of recovery against the other for any loss or damage to the extent such loss or damage is covered by insurance, and each Party shall cause its insurer to consent to such waiver of subrogation.
§ XII. RENEWAL TERMS.
23. This Lease shall automatically renew for an additional period of ________, unless either Party gives written notice of termination no later than 90 days prior to the end of the initial Term or any renewal term. The terms during any such renewal term shall be the same as those contained in this Lease, except as to Rent, which shall be subject to the annual increase set forth in § IV.
§ XIII. MAINTENANCE.
24. Landlord shall be responsible for maintaining the structure, roof, exterior walls, and common areas of the Premises in good repair at all times during the Term. Tenant shall maintain the interior of the Premises in a clean, safe, and sanitary condition.
§ XIV. UTILITIES.
25. Landlord shall be responsible for arranging and paying for the provision of all utilities serving the Premises, except as otherwise allocated in § XV below.
§ XV. TAXES.
26. Taxes attributable to the Premises or the use of the Premises shall be allocated as follows:
(a) Real Estate Taxes. Landlord shall pay all real estate taxes and assessments levied against the Premises during the Term.
(b) Personal Taxes. Tenant shall pay all personal property taxes and any other charges levied against the Premises that are attributable to Tenant's use of the Premises, together with all sales and/or use taxes (if any) that may be due in connection with the lease payments.
§ XVI. TERMINATION UPON SALE OF PREMISES.
27. Notwithstanding any other provision of this Lease, Landlord may terminate this Lease upon thirty (30) days' prior written notice to Tenant in the event the Premises are sold, in which case any unearned Rent paid in advance shall be refunded to Tenant.
§ XVII. DESTRUCTION OR CONDEMNATION OF PREMISES.
§ XVIII. DEFAULTS.
§ XIX. QUIET ENJOYMENT.
30. So long as Tenant is not in default beyond any applicable cure period, Tenant shall have the right of quiet enjoyment of the Premises during the Term, subject to the terms and conditions of this Lease.
§ XX. EMINENT DOMAIN.
31. This Lease shall automatically become void if the entire Premises are taken by eminent domain. During any such proceeding, Tenant shall have the right to assert a claim, to the extent permitted by applicable law, for:
(a) the value of the leasehold interest under this Lease;
(b) loss of business revenue; and
(c) moving and relocation expenses.
§ XXI. HOLDOVER.
32. If Tenant maintains possession of the Premises for any period after the termination of this Lease (the "Holdover Period"), Tenant shall pay to Landlord lease payment(s) during the Holdover Period at a rate equal to 150% (one hundred and fifty percent) of the Rent in effect during the last rent period under this Lease, prorated based on the actual number of holdover days. Such holdover tenancy shall be a tenancy at sufferance and shall not constitute a renewal or extension of the Term.
§ XXII. CUMULATIVE RIGHTS.
33. The rights of the Parties under this Lease are cumulative and shall not be construed as exclusive unless otherwise required by applicable law.
§ XXIII. LANDLORD ACCESS TO PREMISES.
34. Subject to Tenant's consent (which shall not be unreasonably withheld) and reasonable prior notice, Landlord shall have the right to enter the Premises to make inspections, provide necessary services, or show the Premises to prospective buyers, lenders, lessees, or workers. Landlord assumes no liability for the care or supervision of the Premises. In the case of an emergency, Landlord may enter the Premises without Tenant's prior consent as permitted by law. During the last three (3) months of the Term, or any extended period, Landlord shall be allowed access to display "For Lease" signs and show the Premises to prospective tenants.
§ XXIV. INDEMNITY REGARDING USE OF PREMISES.
35. To the extent allowed by law, Tenant agrees to indemnify, hold harmless, and defend Landlord from and against any and all losses, claims, liabilities, and expenses, including reasonable attorneys' fees, that Landlord may suffer or incur in connection with Tenant's possession, use, or misuse of the Premises, except to the extent caused by Landlord's own act or negligence.
§ XXV. DANGEROUS AND HAZARDOUS MATERIALS.
36. Tenant shall not keep or have on the Premises any article or thing of a dangerous, flammable, or explosive nature that might substantially and unreasonably increase the danger of fire or explosion, or that might be considered hazardous by a responsible insurance company, unless the prior written consent of Landlord is obtained and proof of adequate insurance protection is provided by Tenant to Landlord. Tenant shall comply with all applicable federal, state, and local environmental laws and regulations with respect to its use of the Premises.
§ XXVI. COMPLIANCE WITH REGULATIONS.
37. Tenant shall promptly comply with all applicable laws, ordinances, requirements, and regulations of federal, state, county, municipal, and other authorities, and the fire insurance underwriters. However, Tenant shall not by this provision be required to make alterations to the exterior or structure of the building.
§ XXVII. REMODELING AND STRUCTURAL ALTERATIONS.
38. Tenant shall have the obligation to conduct any construction or remodeling (at Tenant's expense) that may be required to use the Premises as specified above. Tenant may also construct such fixtures on the Premises (at Tenant's expense) as appropriately facilitate its use for such purposes. Such construction shall be undertaken, and such fixtures may be erected, only with the prior written consent of Landlord, which shall not be unreasonably withheld. Tenant shall not install awnings or advertisements on any part of the Premises without Landlord's prior written consent. At the end of the Term, Tenant shall be entitled to remove (or, at Landlord's request, shall remove) such fixtures and shall restore the Premises to substantially the same condition as at the commencement of this Lease, ordinary wear and tear excepted.
§ XXVIII. AMERICANS WITH DISABILITIES ACT COMPLIANCE.
39. As required by the Americans with Disabilities Act (ADA), 42 U.S.C. § 12101 et seq., places of public accommodation and commercial facilities must be accessible to individuals with disabilities. In the event the Premises must be altered for ADA compliance, the cost of improvements, alterations, and/or modifications necessary for such compliance shall be the responsibility of both Landlord and Tenant, with the cost to be divided equally between the Parties unless otherwise required by law.
§ XXIX. SUBORDINATION OF LEASE.
40. This Lease is and shall be subordinate to any mortgage or deed of trust that now exists, or may hereafter be given by Landlord, with respect to the Premises, provided that the holder thereof agrees not to disturb Tenant's possession so long as Tenant is not in default. Tenant agrees to execute any reasonable subordination, non-disturbance, and attornment agreement requested by Landlord or any lender.
§ XXX. SUBLETTING AND ASSIGNMENTS.
41. Tenant may not assign or sublease any interest in the Premises, nor effect a change in the majority ownership of Tenant (from the ownership existing at the inception of this Lease), nor assign, mortgage, or pledge this Lease, without the prior express written consent of Landlord, which shall not be unreasonably withheld.
§ XXXI. DISPUTE RESOLUTION.
42. If a disagreement arises during the Term, the following procedures shall apply:
(a) The Parties agree to attempt to resolve any dispute through the use of a mutually agreed-upon mediator.
(b) The costs of the mediator shall be shared equally, and each Party shall cooperate in a good-faith attempt to reach a resolution.
(c) The Parties shall allow the mediator thirty (30) days from the first meeting to facilitate a resolution before resorting to litigation or arbitration.
(d) If the Parties are unable to reach an agreement with the assistance of the mediator within thirty (30) days, each Party reserves the right to bring legal action in a court of competent jurisdiction or before an arbitrator.
(e) The decision of a court or arbitrator shall be legally binding upon all Parties.
§ XXXII. EARLY TERMINATION.
43. Tenant shall have the option to terminate this Lease prior to the natural end of the Term by providing Landlord with not less than ________ days' prior written notice and paying an early termination fee of $________.
§ XXXIII. NOTICES.
44. Notices under this Lease shall not be deemed valid unless given in writing and forwarded by certified mail, return receipt requested, postage prepaid, or by a nationally recognized overnight courier, addressed as follows:
LANDLORD:
________
TENANT:
________
Such addresses may be changed by either Party at any time by providing written notice to the other Party as set forth above. Notices mailed in accordance with these provisions shall be deemed received on the third (3rd) day after posting.
§ XXXIV. GOVERNING LAW AND VENUE.
45. This Lease shall be governed by and construed in accordance with the laws of the State of ________, without regard to its conflict-of-laws principles. The Parties consent to the exclusive jurisdiction and venue of the state and federal courts located in ________ County, State of ________ for the resolution of any dispute not otherwise resolved under § XXXI.
§ XXXV. ENTIRE AGREEMENT.
46. This Lease contains the entire agreement between the Parties, and there are no other promises, conditions, understandings, or agreements, written or oral, relating to the subject matter of this Lease. This Lease may be modified or amended only in writing signed by both Parties.
§ XXXVI. SEVERABILITY.
47. If any part or sub-part of this Lease is deemed invalid by court order, judgment, or other operation of law, the remaining parts and sub-parts shall remain valid and enforceable to the fullest extent permitted by law.
§ XXXVII. HEIRS AND ASSIGNS.
48. Tenant may not transfer or assign this Lease or any portion thereof to a third party except as expressly permitted herein. Notwithstanding the foregoing, all covenants of this Lease shall succeed to and be binding upon the heirs, executors, administrators, successors, and permitted assigns of the Parties.
§ XXXVIII. NO WAIVER.
49. The failure of Landlord to enforce strict performance of any part or sub-part of this Lease shall not be construed as a waiver of Landlord's right to enforce the same part or sub-part later in time or to enforce any other part or sub-part.
§ XXXIX. ADDITIONAL PROVISIONS.
50. Any additional terms or provisions agreed upon by the Parties shall be set forth in writing and attached to this Lease as an addendum, and shall be incorporated herein by reference. In the event of any conflict between such additional provisions and the terms of this Lease, the additional provisions shall control to the extent of such conflict.
________
§ XL. BINDING EFFECT; COUNTERPARTS.
51. The provisions of this Lease shall be binding upon and inure to the benefit of both Parties and their respective legal representatives, successors, and permitted assigns. This Lease may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted electronically or by facsimile shall be deemed original signatures for all purposes.
IN WITNESS WHEREOF, the Parties have executed this Lease as of the Effective Date set forth below.
SIGNATURE OF LANDLORD:
________
By: _______________________________________
Name: ________
Title: ________
Date: ________
SIGNATURE OF TENANT:
________
By: _______________________________________
Name: ________
Title: ________
Date: ________
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