Renting commercial space is a huge responsibility. Before you approach the landlord to rent a commercial space. It is important that you must ensure that you have a clear understanding of the basic terms of the commercial lease agreement.
A commercial lease template is available for the landlords to describe their property as per their convenience. To get a better understanding of the agreement template, keep reading.
What does this template include?
- Name of lessor, lessee and details about premises, like their sizes or address.
- The time period of a lease.
- Costs of payment and rentals.
- Tenants’ obligations to repair and maintain.
- Key terms of lease.
What Is a Commercial Lease Agreement?
A commercial lease agreement is a document stating a contract between a landlord and a business owner. It places out the terms of a rental property. It is essential when a business firm chooses to rent out a property, instead of buying it. This is because it requires less capital investment.
Types of Commercial Lease Agreement
Several types of commercial leases lie beyond a simple monthly flat or annual rent agreement. Here is a list of the same:
Net Lease: Under this type of lease, the tenant has to pay all or part of taxes, maintenance cost, insurance, etc. All these would be incurred by the tenant in addition to the stated rent.
Double Net Lease: Under this type of lease the tenant is required to pay taxes, rent, and insurance.
Triple Net Lease: Under this lease, the tenant is required to pay maintenance, insurance, taxes, and rent.
Percentage Lease: Under this lease, the rent is based on a specified percentage of the sales of profit of the tenant.
Fully-Serviced Lease: Under this lease, the rent paid by the tenant includes utility and other services. All those services that the tenant would generally pay for separately. This lease is commonly applicable to office buildings used by multiple tenants.
What Are The Different Types of Commercial Properties?
The commercial property is commonly divided into five categories.
Office Buildings: This category of the commercial lease includes single-tenant properties and downtown skyscrapers. It also includes small professional office buildings and everything in between.
Retail/Restaurant: This category of the commercial lease includes paid sites on the singleton. It also includes retail buildings, highway frontages, small neighborhood shopping centers, and power centers with large anchors. Other than these large centers with grocery stores, anchor tenants, other regional and outlet malls also come under this category.
Multifamily: This category of the commercial lease includes high rise apartment buildings or apartment complexes.
Land: This category of the commercial lease includes investment properties on raw, undeveloped, or rural land. Properties which are on the verge for future development. It also provides infill and with an urban area, pad sites, and more.
Miscellaneous: This category of the commercial lease includes any other non-residential properties. Some of them being hospitality, self-storage development, hotels, medical, and many others.
When Is a Commercial Lease Agreement Needed?
If you are the owner of a building and you want to rent out your units in your building, then a commercial lease agreement is required. It is essential to memorialize everyone's obligation and clarify their expectations. When negotiating this type of commercial lease agreement, both the landlord and the tenant should clarify any concerns they have about the space.
Moreover, the state laws for the commercial rental agreement does not impose a minimum or maximum requirement on landlords. There are specific requirements and procedures in your state that applied to commercial landlords for tenants.
However, in some circumstances, a commercial lease agreement might continue to trump the default laws. It's essential for landlords and tenants to carefully negotiate the terms of the agreement to ensure the protection of the rights of both parties.
Now, you have known the types of commercial lease agreements, types of commercial properties, and the terms of the agreement, you can get a free commercial lease agreement template online from CocoSign.
CocoSign is one such company offering different types of agreements. You can choose any type of rental or commercial agreement from us if you needed.
Commercial Lease Agreement FAQ
What Details Are Required In the Commercial Lease Agreement?
Every lease should identify who the tenant and landlord are. It should establish how long the lease will be in effect. Also, what terms the tenant must follow to occupy the space legally. The agreement may include many more provisions, such as provisions regarding property alterations, possible situations, amenities, other fees, or termination of the lease.
Can the Commercial Lease Agreement Be Negotiated?
Yes, a lease can be negotiated. You need to identify what you would like to add or negotiate with the landlord for this provision. There is nothing wrong with creating an arrangement to support yourself. Most of the landlords will agree to reasonable negotiations. A healthy relationship between both parties would allow them to work together to get what they need.
Must the Commercial Lease Agreement Be Signed at the Time of Receiving It?
No, it is not necessary to sign the lease at the time of receiving. Instead, you should take the lease and review it. It would be beneficial for you if you let an attorney review the lease as well.
What Are The Basic Elements of a Commercial Lease?
The clauses included in the commercial lease agreement varies depending on the type of business. However, here are some of the important elements to be in almost every commercial lease agreement:
- Starting and termination date of the lease
- Name of the landlord, tenant, company and property details
- The interval of rent payment
- Rent amount, deposit sum and maintenance charges
Can the Commercial Lease Agreement Be Changed After It is Signed?
Just like any contract, the lease is unchangeable once signed. However, the terms of the agreement are changeable or alterable. All the altered changes must appear in the lease. The changes can be anything related to any possible circumstances. Some of them being financial trouble for either party, damages or destruction caused due to natural causes, etc.
This Commercial Lease Agreement (this “Agreement”) is made this ___ day of ___________, 20___, by and between:
Landlord: __________, an ☐ individual ☐ entity located at __________ [Address] (“Landlord”) and
Tenant: __________, an ☐ individual ☐ entity located at __________ [Address] (“Tenant”).
In consideration of the mutual covenants herein contained, the parties agree as follows:
1. Demised Premises. The premises leased shall consist of: (Check one)
☐ A building
☐ An office space in the building complex
☐ A retail store in the building complex
☐ A restaurant in the building complex
☐ An industrial space in the building complex
☐ A warehouse in the building complex
☐ Other: __________
(☐ known as "__________" [Name of building complex]) (the “Real Property”) located at __________ (the “Demised Premises”).
A) Size of Premises. The Demised Premises consists of approximately __________ square feet and comprises approximately __________% of the total leasable area in the building or complex. The square footage of the Demised Premises shall be determined by measuring from the outside of all exterior walls to the centerline of any demising walls. Landlord’s architect or building contractor may measure the Demised Premises to make a final determination of the size.
B) Reserved Uses. Landlord reserves to itself the use of the roof, exterior walls, and the area above and below the Demised Premises, together with the right to install, maintain, use, repair, and replace pipes, ducts, conduits, wires and structural elements leading through the Demised Premises and which serve either the Demised Premises or other parts of the building or complex.
C) Common Area. (Check one)
Landlord grants to Tenant the non-exclusive right to use, in common with all other tenants or occupants of the Real Property, the Common Area of the Real Property. The term “Common Area” shall mean all areas and improvements in the Real Property, which are not leased or held for lease to tenants. The Common Area shall at all times be subject to the exclusive control and management of Landlord, and Landlord shall have the right from time-to-time to change the sizes, locations, shapes, and arrangements of the Common Area; restrict parking by Tenant and other tenants to designated areas; and do and perform such other acts in and to the Common Area and adopt, modify, and enforce such rules and requirements as Landlord in its sole discretion deems advisable. Landlord shall maintain the Common Area in good repair and reasonably clear of debris.
☐ This Agreement and the Demised Premises does NOT include the use by Tenant of any Common Areas of the Real Property. The term “Common Area” shall mean all areas and improvements in the Real Property, which are not leased or held for lease to tenants.
D) Parking Spaces. (Check one)
☐ Tenant, including its guests, employees, agents, and customers does NOT have the right to use any parking space(s) on the Real Property.
☐ Tenant, including its guests, employees, agents, and customers has the right to use: (Check one)
☐ Any parking space(s)
☐ Only __________ [Number] of the parking space(s)
☐ Other: __________
located in the (Check one) ☐ building garage ☐ building parking lot ☐ adjacent surface parking lot ☐ public parking lot ☐ other: __________ (☐ on a reasonable non-exclusive first-come, first serve basis).
Sublet (Check one)
☐ Tenant may assign or sublet their parking space(s). Tenant accepts and understands that parking privileges granted are not personal to the Tenant and such parking privileges may be assigned or sublet.
☐ Tenant may NOT assign or sublet their parking space(s). Tenant accepts and understands that parking privileges granted are personal to the Tenant and such parking privileges may not be assigned or sublet.
Fee (Check one)
☐ Tenant will pay Landlord a fee of $__________ on a: (Check one)
☐ Daily basis for the use of such parking privileges.
☐ Weekly basis for the use of such parking privileges.
☐ Monthly basis for the use of such parking privileges.
☐ Other: __________ basis for the use of such parking privileges.
☐ Tenant will NOT pay Landlord a fee for the use of such parking privileges.
E) Storage Facilities. (Check one)
☐ This Agreement and the Demised Premises does NOT include the use of any storage facilities on the Real Property.
☐ Landlord agrees that during the term of this agreement, Tenant has the right to store personal property in the __________ [Description of storage facilities] at their own risk. Landlord will not be responsible for any loss, theft, or damage of items stored by the Tenant.
Fee (Check one)
☐ Tenant will pay Landlord a fee of $__________ on a: (Check one)
☐ Daily basis for the use of such facilities.
☐ Weekly basis for the use of such facilities.
☐ Monthly basis for the use of such facilities.
☐ Other: __________ basis for the use of such facilities.
☐ Tenant will NOT pay Landlord for the use of such facilities.
2. Agreement to Lease. Landlord agrees to lease to Tenant and Tenant agrees to lease from Landlord, the Demised Premises according to the terms and conditions of this Agreement.
3. Term of Lease. The term of this Agreement shall commence on ___________, 20___ (“Commencement Date”) and ending at midnight on ___________, 20___ (“Termination Date”).
Renewal (Check one)
☐ This Lease may NOT be renewed.
☐ This Lease may be renewed.
A) Renewal. Provided Tenant is not in default in the performance of this Agreement, Tenant shall have the option to renew this Agreement for an additional __________ year term(s) commencing on the Termination Date by providing notice as described in subsection B herein.
Rent Increase (Check one)
☐ Rent will NOT be increased. All of the terms and conditions of this Agreement shall apply during each renewal term.
☐ Rent will be increased. All of the terms and conditions of this Agreement shall apply during each renewal term, except that the Base Rent shall be increased by: (Check one)
☐ __________% each renewal term.
☐ $___________ each renewal term.
B) Notice of Renewal. The option to renew this lease pursuant to subsection A above shall be exercised by providing written notice given to Landlord not less than __________ days prior to the Termination Date. If written notice is not given in the manner provided herein within the time specified, this option shall lapse and expire.
4. Rental Terms. With respect to the terms of the rental:
A) Base Rent. Tenant shall pay to Landlord, from the Commencement Date and throughout the term of this Agreement, $__________, payable on a: (Check one)
Additional Late Charge (Check one)
☐ If any amount due under this Agreement remains unpaid for more than __________ days after it is due, then in addition to the Late Charge, such unpaid amounts shall bear interest at the rate of __________% per month, not to exceed the maximum amount allowed by law.
☐ Landlord will NOT require an additional late charge.
Returned Payment Fee (Check one)
☐ In the event Landlord receives a payment from Tenant which is returned for insufficient funds, Landlord may, without limiting Landlord’s other remedies, charge Tenant a fee in the amount of __________ to cover Landlord’s overhead and administrative expenses and/or require that all payments thereafter be bank certified or cashier’s checks.
☐ Landlord will NOT charge a fee for returned payments.
G) Security Deposit. Tenant shall, at the time of executing this Agreement, deposit with Landlord as a security deposit the sum of $__________, which amount shall serve as security for the full performance of the obligations and covenants of Tenant under this Agreement.
Interest (Check one)
☐ Such deposit shall accrue interest for Tenant, shall not be considered a rental payment, final or otherwise, and shall not be considered to limit or relieve Tenant from any obligation or liability to Landlord.
☐ Such deposit shall NOT accrue interest for Tenant, shall not be considered a Rental payment, final or otherwise, and shall not be considered to limit or relieve Tenant from any obligation or liability to Landlord.
In the event of a default by Tenant under the terms of this Agreement, Landlord may apply such deposit toward the cure of such default without notice to Tenant. Upon complete performance by Tenant of all its obligations under or with respect to this Agreement, any remaining portion of such deposit to which Tenant is entitled shall be refunded to Tenant. Landlord may transfer the security deposit to any purchaser of Landlord’s interest in the Demised Premises, in which event Landlord shall be discharged from any further liability with respect to such deposit and Tenant will look solely to the purchaser of Landlord’s interest for any return of said deposit.
H) Holding Over. If Tenant remains in possession of the Demised Premises after the expiration of the initial Lease Term or any renewal Term without the execution of a new lease, it shall be deemed to be a tenant from month-to-month, subject to all conditions, provisions and obligations of this Agreement insofar as the same are applicable to a month-to-month tenancy except that the Base Rent shall be __________ [Number] times the Base Rent applicable immediately prior to the expiration of the Term.
5. Use, Occupancy and Condition of Premises. With respect to use and occupancy:
A) Use and Occupancy. Tenant shall use and occupy the Demised Premises for the commercial purpose of ____________________________________________________________ [Description of commercial purpose] and related activities. The Demised Premises shall be used for no other purpose without the advance written consent of Landlord.
Tenant shall operate the Demised Premises in a clean and dignified manner and in compliance with all applicable laws, regulations, rules, and ordinances.
Janitorial Services (Check one)
☐ Tenant shall provide its own janitorial services.
☐ As agreed by both parties, Landlord shall provide janitorial services and shared costs will be included in the Operating Cost.
Tenant shall use the Demised Premises for no unlawful purpose or act; shall commit or permit no waste or damage to the Demised Premises; shall, at Tenant’s expense, comply with and obey all applicable laws, regulations, or orders of any governmental authority or agency; shall not do or permit anything to be done in or about the Demised Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Real Property; and shall comply with all the rules and requirements promulgated by Landlord with respect to the Real Property, as the same may be amended from time to time. Tenant agrees as follows: (Check all that apply)
☐ I. All loading and unloading, delivery and shipping of goods shall be conducted in such areas and through the entrances designated by Landlord.
☐ II. No window coverings, such as curtains, blinds or shades, shall be placed on the windows of Demised Premises unless approved by Landlord.
☐ III. No smoking in the Demised Premises or within __________ feet or any doorway.
☐ IV. All garbage and refuse shall be kept in the size and kind of container, and in a location approved by Landlord. Tenant shall not burn any trash or garbage in or about the Real Property.
☐ V. No aerial, loudspeaker, satellite dish, sound amplifier, equipment, displays, or advertising shall be erected on the roof or exterior walls of the Demised Premises, or on other areas of the Real Property without the prior written consent of Landlord.
☐ VI. No loudspeaker, television, phonograph, juke-box, radio, or other device shall be used in a manner so as to be heard other than by persons who are within the Demised Premises without the prior written consent of Landlord.
☐ VII. No activity will take place on the Demised Premises or common areas which shall cause any odor which can be smelled other than by persons who are within the Demised Premises.
☐ VIII. Tenant shall keep the Demised Premises at a temperature sufficiently high to prevent freezing of water in pipes and fixtures.
☐ IX. Tenant shall not permit or place any obstructions or merchandise in any common areas, including but not limited to, corridors, all sidewalks in front of, on the side of, or in the back of the Demised Premises.
☐ X. The plumbing facilities in the Demised Premises shall not be used for any purpose other than that for which they are constructed, and no foreign substance of any kind shall be thrown therein, and the expense of any breakage, stoppage, or damage resulting from a violation of this provision shall be borne by Tenant. Tenant shall be responsible for the proper and lawful disposal of all cooking grease used within the Demised Premises.
☐ XI. Tenant shall keep all windows, window sills, window frames and exterior signs of the Demised Premises clean.
☐ XII. No merchandise shall be stored in the Demised Premises except that which Tenant is selling in the normal course of business in, at, or from the Demised Premises.
☐ XIII. No auctions or tent sales shall be held within the Demised Premises or on or within any portion of the Real Property, except with the prior written consent of Landlord.
☐ XIV. Landlord shall have the right to prohibit the continued use by Tenant of any unethical or unfair method of business operation, advertising or interior display if, in Landlord’s opinion, the continued use thereof would impair the reputation of the Real Property as a first class facility or is otherwise out of harmony with the general character thereof, and upon notice from Landlord shall forthwith refrain from or discontinue such activities.
☐ XV. Tenant shall keep the Demised Premises (including without limitation, exterior and interior portions of all windows, doors and all other glass) in a neat, clean and sanitary condition, free of all insects, rodents, vermin and pests of every type and kind.
☐ XVI. Tenant shall not use the Demised Premises for any purpose or business which is noxious or unreasonably offensive because of the emission of noise, smoke, dust or odors.
☐ XVII. Tenant shall keep the entry ways and sidewalk/walkway in front of the Demised Premise clear of all debris, trash and litter, and shall keep the same swept, maintained and snow and ice removed therefrom.
B) Environmental Restrictions
. Tenant shall not use the Demised Premises for any activities involving, directly or indirectly, the use, generation, treatment, storage or disposal of any hazardous or toxic chemical, material, substance or waste (“Hazardous Material”), and that the Demised Premises will be used only in compliance with any and all environmental laws, rules and regulations applicable thereto. Landlord shall have the right, but not the duty, to inspect the Demised Premises and conduct tests thereon should Landlord have a reasonable belief there is Hazardous Material on the Demised Premises. In the event tests indicate the presence of such Hazardous Material, and Tenant has not removed the Hazardous Material on demand, Landlord shall have the right to immediately enter the Demised Premises to remedy any contamination found thereon. In exercising its rights herein, Landlord shall use reasonable efforts to minimize interference with Tenant’s business, but such entry shall not constitute an eviction of Tenant, in whole or in part, and Landlord shall not be liable for any interference, loss, or damage to Tenant’s property or business caused thereby, provided such contamination is not caused by or the result of Landlord’s actions, or the actions. If any lender or governmental agency shall ever require testing to ascertain whether there has been a release of Hazardous Material, then the reasonable costs thereof shall be reimbursed by Tenant to Landlord upon demand as additional Rent if such requirement arose because of Tenant’s storage or use of Hazardous Material on the Demised Premises. Tenant shall execute affidavits, representations and the like from time to time, at Landlord’s reasonable request, concerning Tenant’s best actual knowledge and belief regarding the presence of any Hazardous Material on the Demised Premises or Tenant’s intent to store or use Hazardous Material on the Demised Premises.
C) Condition and Acceptance of Premises. Tenant accepts the Demised Premises in their current condition and acknowledges that the Demised Premises is in good order and repair, unless otherwise indicated herein. By occupying the Demised Premises, Tenant shall be conclusively deemed to have accepted the Demised Premises as being in the condition required by this Agreement. If requested by Landlord, Tenant will sign a statement confirming the Commencement Date and ratifying acceptance of the Demised Premises. In addition, Tenant shall have a __________ [Number] day waiting period to discover any defects and shall notify Landlord immediately of the same.
6. Property in Demised Premises. With respect to the property:
A) Right to Leasehold Improvements. (Check one)
☐ Tenant is NOT allowed to make improvements on the Demised Premises.
☐ All leasehold improvements (other than Tenant’s trade fixtures), such as light fixtures and heating and air conditioning equipment, shall, when installed, attached to the freehold and become and remain the property of Landlord. All Tenant’s trade fixtures shall remain the property of Tenant, subject at all times to any of Landlord’s liens for Rental and other sums which may become due to Landlord under this Lease or otherwise. Tenant (Check one) ☐ shall not ☐ shall be allowed to remove all such trade fixtures upon termination of this Lease, provided that Tenant is not in default in any of the terms and provisions of this Lease.
B) Risk and Loss of Tenant’s Personal Property. All of Tenant’s personal property which may at any time be in the Demised Premises shall be at Tenant’s sole risk, or at the risk of those claiming under Tenant. Landlord shall not be liable for any damage to said property or loss of business suffered by Tenant which may be caused by water from any source whatsoever including the bursting, overflowing, or leaking of sewer or steam pipes or from the heating or plumbing fixtures or from electric wires or from gas or odor or leaking of the fire suppression system.
C) Fixtures and Furnishings Provided by Landlord. (Check one)
☐ Landlord shall provide the following fixtures and furnishings: (Check all that apply)
☐ Landlord shall NOT provide fixtures or furnishings.
D) Personal Property Taxes of Tenant. (Check one)
☐ Landlord shall pay before delinquency all taxes assessed against Landlord’s fixtures, furnishings, equipment and stock-in-trade placed in or on the Demised Premises.
☐ Tenant shall pay before delinquency all taxes assessed against Landlord’s fixtures, furnishings, equipment and stock-in-trade placed in or on the Demised Premises. Any such taxes paid by Landlord shall become due and payable by Tenant within __________ days after written notice from Landlord.
7. Repairs and Maintenance. With respect to repair and maintenance obligations:
A) Landlord’s Obligation to Repair and Maintain. Landlord shall be responsible for repairing and maintaining the Demised Premises in good condition and for making such modification or replacements thereof as may be necessary or required by law or ordinance, specifically for the following: (Check all that apply)
☐ Foundation and structural components of the building
☐ Exterior walls but excluding (windows, doors, window and door frames, plate glass)
☐ Roof, gutters and downspouts
☐ Parking lot
☐ Other: __________
(Check or cross out) ☐ However, Tenant shall reimburse Landlord for any such maintenance, repairs, or replacements made necessary by any acts of Tenant.
Landlord reserves and at all times shall have the right to enter the Demised Premises in any emergency and also during regular business hours upon advance written notice to inspect the same, and to repair the Demised Premises and any portion of the Real Property or Common Area, without abatement of Rent.
B) Tenant’s Obligation to Repair and Maintain. All maintenance, repairs, or replacements relating to the Demised Premises which are not the obligation of Landlord shall be the obligation of Tenant and shall be made by Tenant at Tenant’s sole cost and expense. Tenant shall keep and maintain the Demised Premises in good repair and order at all times. Tenant shall be responsible for the maintenance, repair and replacement of the following: (Check all that apply)
☐ Heating, ventilation and air conditioning systems
☐ Electrical systems
☐ The replacement of all broken glass and cracked glass relating to the interior or exterior of the demised premises
☐ Other: __________
C) Remodeling. Tenant shall not do the following: (Check all that apply)
☐ Paint, decorate, or in any way change the exterior (or the appearance) of the Demised Premises without prior written consent of Landlord.
☐ Remodel, make additions, alterations or structural changes to the interior of the Demised Premises without prior written consent of Landlord, which consent will not be unreasonably withheld; however, the Tenant is permitted to paint and decorate the interior of the Demised Premises without prior consent of Landlord.
☐ Enter upon the roof or install or place any equipment, lines, wires, displays, advertising or anything else whatsoever thereon without the prior written consent of Landlord, which consent may be denied, conditioned or withheld at Landlord’s sole discretion.
D) No Liens Permitted. No person shall ever be entitled to any lien, directly or indirectly, derived through or under Tenant, or through or under any act or omission of Tenant, upon the Demised Premises, or any improvements now or hereafter situated thereon, or upon any insurance policies taken out upon the Demised Premises, or the proceeds thereof, for or on account of any labor or materials furnished to the Demised Premises, or for or on account of any matter or thing whatsoever; and nothing in this Agreement contained shall be construed to constitute a consent by Landlord to the creation of any lien. In the event that any such lien shall be filed, Tenant shall cause such lien to be released within __________ days after actual notice of the filing thereof, or shall within such time certify to Landlord that Tenant has a valid defense to such claim and such lien and furnish to Landlord a bond, satisfactory to Landlord, indemnifying Landlord against the foreclosure of such lien. In addition to any other remedy herein granted, upon failure of Tenant to discharge such lien or to post a bond indemnifying Landlord against foreclosure of any such lien as above provided, Landlord, after notice to Tenant, may discharge such lien, and all expenditures and costs incurred thereby, with interest thereon, shall be payable as further Rent hereunder at the next Rent payment date.
8. Insurance and Indemnification. With respect to insurance and indemnification:
A) Tenant’s Public Liability and Property Damage Insurance. Tenant shall purchase and maintain public liability and property damage insurance insuring against loss, cost and expense by reason of injury to or the death of persons or damage to or the destruction of property arising out of or in connection with the occupancy or use by Tenant, its employees, agents and assigns, of the Demised Premises and/or the Common Area, such insurance (☐ to include Landlord as an additional Insured, to be carried with an insurer and) to have: (Check one)
☐ A minimum aggregate policy in the amount of no less than $__________
☐ Limits of liability of not less than $__________per occurrence on a combined single limit basis
and a deductible no greater than $__________.
B) Certificate of Insurance.
Tenant shall furnish to Landlord a certificate of insurance evidencing such coverage which provides that such policies may not be canceled on less than __________ days prior written notice to Landlord. Should Tenant fail to carry the insurance required herein and furnish Landlord with the policies or certificates of insurance after a request to do so, Landlord shall have the right to obtain such insurance and collect the cost thereof from Tenant as additional Rent.
C) Landlord’s Insurance. Landlord shall keep the Real Property (but not the contents thereof or any personal property or trade or business fixtures of Tenant) insured against loss or damage by fire and other perils normally covered by standard all-risk insurance. Landlord may also maintain public liability, property damage, loss of rent, and such other coverage related to the Real Property as Landlord deems appropriate.
Insurance Included in Operating Costs (Check one)
☐ All premiums for such insurance maintained by Landlord shall be considered Operating Costs.
☐ All premiums for such insurance maintained by Landlord shall NOT be considered Operating Costs.
D) Mutual Waiver of Subrogation. If either party suffers loss or damage which is caused by the other party, but which is covered by the injured party’s insurance, the injured party waives any claim it might have against the other party to the extent that it is compensated by the insurance required under this Agreement; and each party agrees to obtain from its insurer a provision and acknowledgement of this waiver and an agreement that the insurance carrier will not be subrogated to the rights of the injured party to the extent that these rights have been waived above.
E) Mutual Hold Harmless. It is agreed that Tenant shall defend, hold harmless and indemnify Landlord, its officers, agents and employees from any and all claims for injuries to persons or damage to the Demised Premises which result from the negligent acts or omissions of Tenant, its officers, agents or employees, in the performance of this Agreement. It is further agreed that Landlord shall defend, hold harmless and indemnify Tenant, its officers, agents and/or employees from any and all claims for injuries to persons and/or damage to the Demised Premises which result from the negligent acts or omissions of Landlord, its officers, agents and/or employees, in the performance of this Agreement. In the event of the concurrent negligence of Tenant and Landlord, then the liability for any and all claims for injuries or damages which arise out of the performance of the terms and conditions of this Agreement shall be apportioned in accordance with the law of the state in which the Real Property is located.
9. Signs. With respect to signs:
A) Exterior Sign. Tenant can install a sign acceptable to Landlord on the front of the Demised Premises, hereinafter referred to as “Exterior Sign” prior to opening for business.
Landlord Approval (Check one)
☐ Any Exterior Sign must be approved by Landlord and shall comply with the requirements of Landlord. Landlord reserves the right to reject any Exterior Sign design it feels is inappropriate for any reason in its sole discretion.
☐ Any Exterior Sign does NOT require Landlord’s approval.
(Check one) ☐ Landlord ☐ Tenant shall be solely responsible for the cost of fabrication, installation,
Any property not so removed at the expiration of the Term hereof shall be deemed to have been abandoned by Tenant and may be retained or disposed by Landlord. Tenant shall not remove any leasehold improvements or non-trade fixtures and shall surrender the Demised Premises upon termination of the tenancy created by this Agreement in the same condition as the Demised Premises were required to have been in on the Commencement Date, ordinary wear and tear and damage by fire or other insured casualty excepted.
Fixtures and Equipment Installed by Tenant (Check one)
☐ Any and all trade fixtures and equipment installed by Tenant may be removed by Tenant at the termination of this Agreement, provided that Tenant shall not be in default in the performance of any of Tenant’s obligations hereunder and provided that Tenant shall repair any and all damage caused to the Demised Premises by the removal of any such trade fixtures and equipment.
☐ Any and all trade fixtures and equipment installed by Tenant may NOT be removed by Tenant at the termination of this Agreement.
D) Assignment and Subletting. (Check one)
☐ Subleasing NOT allowed. Tenant will not assign this Agreement as to any portion or all of the Demised Premises or make or permit any total or partial sublease or other transfer of any portion or all of the Demised Premises.
☐ Subleasing allowed with Landlord’s approval. Tenant shall not assign, mortgage, encumber or transfer any interest in this Agreement, or sublet the Demised Premises in whole or in part, nor grant a license or concession in connection therewith without Landlord’s prior written consent, which consent shall be at Landlord’s sole discretion.
12. Damage to Premises. With respect to damage to the Premises:
A) Substantial Damage. In the event the Demised Premises or the Real Property of which the Demised Premises constitute a part shall be damaged or destroyed by fire or other casualty to the extent that the cost of repairing or replacing the same will equal or exceed (Check one)
☐ __________% ☐ $__________ of the then replacement value thereof, then the parties may, at their option, within __________ days after the occurrence of such casualty, terminate this Agreement upon written notice.
B) Partial Damage. In the event the Demised Premises or the Real Property of which the Demised Premises constitute a part shall be partially damaged or destroyed by fire or other casualty to the extent that the cost of repairing or replacing the same will be less than (Check one) ☐ __________% ☐ $__________ of the then replacement value thereof, or in the event Landlord does not elect to terminate this Agreement as a result of substantial damage, then Landlord shall repair the damage with reasonable dispatch after notice of such casualty; provided, however, the Landlord's obligation to repair or restore (Check one) ) ☐ shall not ☐ shall be limited to restoring the structural portions of the Demised Premises and (Check one) ) ☐ shall not ☐ shall
include repairs or the restoration of any of Tenant's fixtures, improvements or other alterations made by Tenant in or upon the Demised Premises. Notwithstanding anything provided herein to the contrary, the Landlord's obligation to repair or rebuild shall be limited to the amount of the fire insurance proceeds received by Landlord (less any costs incurred by Landlord in collecting the same) as a result of any such casualty. In the event the fire insurance proceeds received by Landlord (less any costs incurred by Landlord in collecting the same) are insufficient to rebuild the Demised Premises and/or the Real Property, then Landlord shall have the option to terminate the Lease upon notice to Tenant within __________ days after Landlord’s receipt of the entire net insurance proceeds payable with respect to such fire or casualty.
C) Rents Upon Damage or Destruction. In the event this Agreement is terminated in the manner set forth above, the Rents shall be apportioned to the time of such casualty. In the event this Agreement is not terminated and Landlord elects to restore or repair the Demised Premises, then the Rent payable by Tenant shall be equitably abated based on the square footage in the Demised Premises which are useable, until such time as the damage to the Demised Premises has been repaired; provided, however, in no event shall there be any abatement of the payment of any Operating Costs.
13. Eminent Domain. With respect to eminent domain:
A) Condemnation of Demised Premises. If the whole or any substantial part of the Demised Premises shall be taken or acquired by any public or quasi-public authority under the power or threat of eminent domain, for other than a temporary period, the Lease Term shall cease as of the day possession shall be taken by such public or quasi-public authority, and Tenant shall pay Rent up to that date with an appropriate refund by Landlord of any rent which may have been paid in advance for any period subsequent to the date possession is taken. In the event that during the term of this Agreement the Demised Premises, or any part thereof, or more than __________% of the Real Property or of the Common Area is taken by condemnation or right of eminent domain, or by private purchase in lieu thereof, this Agreement and the term hereby granted shall be terminable at Landlord’s sole option and if Landlord so terminates then this Agreement shall expire on the date when possession shall be taken by the condemnor and the Base Rent herein reserved shall be apportioned and paid in full to that date and all prepaid Base Rent shall forthwith be repaid by Landlord to Tenant. In the event Landlord does not elect to cancel or terminate this Agreement as provided above, then Landlord shall rebuild and restore the Demised Premises as nearly as possible to their condition immediately prior to any such taking and this Agreement shall continue in full force and effect except that, during such restoration, the Base Rent payable pursuant to the terms of this Agreement shall be equitably apportioned in the proportion that the square footage of the part of the Demised Premises so taken bears to the total square footage of the Demised Premises immediately prior to such taking; provided, however, in no event shall there be any abatement of the payment of any Operating Costs, provided further, however, the Landlord’s obligations to restore or rebuild shall be limited to an amount which does not exceed the proceeds obtained from such taking (less expenses incurred in collecting the same). Notwithstanding the foregoing, in the event the net condemnation award received by Landlord is insufficient to restore or rebuild the structural portions of the Demised Premises the Landlord shall have the option within __________ days after Landlord’s receipt of the net condemnation, to cancel and terminate this Agreement, and Tenant shall be limited to consequential damages only.
B) Condemnation Award. All compensation awarded or paid upon any total or partial taking of the Demised Premises shall belong to and be the property of the Landlord. Nothing herein shall prevent Tenant from pursuing a separate award from the condemning authority for its moving expenses or for the taking of its personal property, as long as Tenant’s award does not reduce Landlord’s award from the condemning authority.
14. Insolvency and Bankruptcy. The appointment of a receiver to take possession of all or substantially all of the assets of Tenant or any of the persons constituting Tenant, or an assignment by Tenant or any of the persons constituting Tenant for benefit of creditors or any action taken or suffered by Tenant or any of the persons constituting Tenant under any insolvency, bankruptcy, or reorganization act, shall constitute a breach of this Agreement by Tenant. In no event shall this Agreement be assigned or assignable by operation of law or by voluntary or involuntary bankruptcy proceedings or otherwise and in no event shall this Agreement or any rights or privileges hereunder be an asset of Tenant or any of the persons constituting Tenant under any bankruptcy, insolvency, or reorganization proceedings.
15. Default. With respect to default:
A) Rights in Event of Default of Tenant. If Tenant shall abandon or vacate the Leased Premises or fail to pay Rent at the time prescribed in this Agreement, or if after __________ days written notice from Landlord, Tenant shall fail to cure any other default in the performance of its obligations under this Agreement (unless Tenant is then proceeding in good faith to cure such default and continues to do so until the default is cured), then, in addition to any other rights or remedies Landlord may have by law or otherwise, Landlord shall have the right to re-enter and take possession of the Demised Premises without legal process and remove all persons and property therefrom. Should Landlord elect to re-enter as herein provided, or should Landlord take possession pursuant to legal proceedings or pursuant to any notice provided for by law, Landlord may terminate Tenant’s rights under this Agreement, re-let the Demised Premises or any part thereof for such term and at such rent and upon such other terms and conditions as Landlord in the exercise of Landlord’s sole discretion may deem advisable, with the right to make alterations and repairs to the Demised Premises. Upon each such re-letting, Tenant immediately shall be liable for payment to Landlord of any indebtedness of Tenant (other than Rent due hereunder), the cost and expense of such re-letting, and of such alterations and repairs incurred by Landlord, and the amount, if any, by which the Rent reserved in this Agreement, which are Tenant’s responsibility under the provisions of this Agreement for the period of such re-letting, exceeds the amount agreed to be paid as rent by the new tenant for the Demised Premises for such period of such re-letting.
B) Costs and Payment of Rents. Should Tenant at any time be in default under this Agreement, Tenant shall be liable for all costs Landlord may incur on account of such default, including the cost of recovering the Demised Premises, any and all attorney fees and court costs relating thereto. In addition, should Landlord at any time terminate this Agreement and Tenant’s rights under this Agreement for any default, in addition to any other remedy Landlord may have, Landlord may recover from Tenant all damages Landlord may incur by reason of such default, and including the Rent reserved and charged in this Agreement for the remainder of the Term discounted to present value, less the present rental value of the Demised Premises for the rest of the Term (discounted in the same manner), all of which amounts shall be immediately due and payable with attorney fees from Tenant to Landlord and without relief from valuation, and Landlord shall have no obligation to re-let. Tenant’s liability for the default damages and/or re-letting costs shall survive any termination of this Agreement.
C) Right of Removal of Tenant’s Property.
Landlord shall have the right to remove all or any part of Tenant’s property from the Demised Premises. Any property removed may be either: (a) Stored in any public warehouse or elsewhere at the cost of, and for the account of, Tenant and Landlord shall not be responsible for the care or safekeeping thereof; or (b) sold at a private or public sale and the proceeds of such sale, after sale expenses, shall be used to offset any Rent due to Landlord. Tenant hereby waives any and all loss, destruction and/or damage or injury which may be occasioned by any of the aforesaid acts.
D) Default of Landlord. Landlord shall in no event be charged with default in the performance of its obligation under this Agreement unless and until Landlord shall have received written notice from Tenant specifying wherein Landlord has failed to perform any obligation hereunder, and Landlord shall have failed to perform such obligation, or remedy such default, within __________ days of such notice from Tenant (or shall then have failed in good faith to start and be diligently pursuing the cure of any such default which reasonably takes longer than __________ days to cure).
16. Quiet Enjoyment. Landlord agrees that if Tenant pays the Rent and other charges herein provided and shall perform all of the covenants and agreements herein stipulated to be performed on Tenant’s part, then Tenant shall, at all times during said Term, have the peaceable and quiet enjoyment and possession of the Demised Premises without any manner of hindrance from Landlord or any persons lawfully claiming through Landlord, except as to such portion of the Demised Premises or Real Property as shall be taken under the power of eminent domain or which may be claimed by any mortgagee of the Demised Premises of the Real Property.
A) Waivers. No waiver of any condition or covenant in this Agreement by either party shall be deemed to imply or constitute a further waiver of the same or any other condition or covenant of this Agreement.
B) Subordination. Tenant agrees, at the request of Landlord, to subordinate this Agreement to any mortgage placed upon the Demised Premises or the Real Property or any one or more of them by Landlord provided that the holder of such mortgage enters into an agreement with Tenant, binding upon the successors and assigns of the parties thereto, by the terms of which such holder agrees not to disturb the possession, peaceable and quiet enjoyment and other rights of Tenant under this Agreement. In addition, so long as Tenant continues to perform its obligations hereunder, in the event of acquisition of title by said holder through foreclosure proceedings or otherwise holder agrees to accept Tenant as tenant of the Demised Premises under the terms and conditions of this Agreement and to perform the Landlord’s obligations hereunder (but only while owner of the Demised Premises), and Tenant agrees to recognize such holder or any other person acquiring title to the Demised Premises as Landlord. The parties agree to execute and deliver any appropriate instruments necessary to carry out the agreements contained herein.
C) Notices and Certificates.
All notices given under this Agreement must be in writing. A notice is effective upon receipt and shall be delivered in person, by overnight courier service, via certified or registered mail, or by first class U.S. mail, postage prepaid, to Landlord and Tenant at the address as specified above, or to such other addresses which a party may designate in writing delivered to the other party for such purpose. Date of service of a notice served by mail shall be one business day following the date on which such notice is deposited in a post office box of the United States Postal Service.
D) Relationship of Parties. Nothing contained herein shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent, or of partnership, or of joint venture, between the parties hereto.
E) Governing Law. The terms of this Agreement shall be governed by and construed in accordance with the laws of the State of __________, not including its conflicts of law provisions.
F) Dispute Resolution. Any dispute arising from this Agreement shall be resolved through:
☐ Court litigation. Disputes shall be resolved in the courts of the State of ______________.
☐ If either Party brings legal action to enforce its rights under this Agreement, the prevailing party will be entitled to recover from the other Party its expenses (including reasonable attorneys’ fees and costs) incurred in connection with the action and any appeal.
☐ Binding arbitration. Binding arbitration shall be conducted in accordance with the rules of the American Arbitration Association.
☐ Mediation, then binding arbitration. If the dispute cannot be resolved through mediation, then the dispute will be resolved through binding arbitration conducted in accordance with the rules of the American Arbitration Association.
G) Force Majeure. In the event that either party shall be delayed or hindered in or prevented from doing or performing any act or thing required in this Agreement by reason of strikes, lock-outs, casualties, acts of God, labor troubles, inability to procure materials, failure of power, governmental laws or regulations, riot, insurrection, war, pandemics or other causes beyond the reasonable control of such party, then such party shall not be liable or responsible for any such delays and the doing or performing of such act or thing shall be excused for the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.
H) Complete Agreement. This Agreement contains a complete expression of the agreement between the parties and there are no promises, representations or inducements except such as are herein provided.
I) Successors in Interest. The covenants, agreements, terms, conditions and warranties of this Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, executors, administrators, successors and assigns, but shall create no rights in any other person except as may be specifically provided for herein.