Commercial Lease Agreement Template

COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement (the "Lease") is made on by and between , with a mailing address of (the "Lessor"), and , with a mailing address of (the "Lessee"). The Lessor and Lessee are together the "Parties."

The Lessor owns certain real property and the Lessee wishes to lease that property on the terms below. In consideration of the mutual promises in this Lease, the Parties agree as follows:

1. LEASED PREMISES

The Lessor leases to the Lessee the property commonly known as (the "Premises").

2. USE OF PREMISES

The Lessee will use the Premises only for the purpose of operating . Any change in use requires the Lessor's prior written consent.

3. TERM

The term of this Lease is years and months, beginning on and ending at midnight on (the "Term").

4. BASE RENT

The Lessee will pay base rent of $ per month, in advance, on or before the day of each month during the Term, beginning on . Rent is payable to the Lessor by wire transfer, money order, check, or another method the Lessor accepts, at the address the Lessor designates.

A late fee of % of the monthly rent applies to any rent paid more than days after its due date. A fee of $ applies to any check returned for insufficient funds.

5. OPTION TO RENEW

Provided the Lessee is not in default, the Lessee may renew this Lease for one renewal term of years and months (the "Renewal Term") by giving the Lessor written notice at least sixty (60) days before the Term expires. Base rent during the Renewal Term will be $ per month. If the Lessee chooses not to renew, the Lessee will give the Lessor at least ninety (90) days' written notice and will continue to operate its business in good faith during that period.

6. TRIPLE NET EXPENSES

This is a "Triple Net Lease." In addition to base rent, the Lessee is responsible for the following:

(a) Operating Expenses. The Lessee will pay one hundred percent (100%) of all costs of operating and maintaining the Premises, including without limitation utilities, HVAC, water, waste and sewage, repairs and repaving, cleaning, landscaping, snow removal, security, service agreements, and related parking areas. Exceptions: .

(b) Taxes. The Lessee will pay the real estate taxes and any special assessments attributable to the Premises during the Term. At the Lessor's option, the Lessee will pay estimated taxes monthly in an amount equal to one-twelfth (1/12) of the estimated annual amount, prorated for any partial year.

(c) Insurance. The Lessee will maintain, throughout the Term, comprehensive general liability insurance with a licensed insurer acceptable to the Lessor, with coverage of not less than $ for injury and $ for property damage, naming the Lessor (and the Lessor's mortgagees, if any) as additional insured, and will provide the Lessor with certificates of insurance.

7. SECURITY DEPOSIT

On signing this Lease, the Lessee will pay a security deposit of $ (the "Security Deposit") as security for the Lessee's performance of this Lease. The Lessor will hold the Security Deposit in a separate account. The Security Deposit may not be applied to the last month's rent without the Lessor's written permission.

8. LEASEHOLD IMPROVEMENTS AND LIENS

The Lessee will make no improvements, alterations, or changes to the Premises without the Lessor's prior written consent, which will not be unreasonably withheld. Any improvements that become affixed to the Premises remain the Lessor's property at the end of the Lease, and the Lessee is responsible for the cost of any improvements it makes. The Lessee will keep the Premises free of any mechanic's lien or other encumbrance arising from its actions and will promptly discharge or bond against any such lien; if the Lessee fails to do so, the Lessor may remove it at the Lessee's expense.

9. FURNISHINGS

The Lessor will provide the following furnishings: . The Lessee will return them at the end of the Term in as good a condition as at the start, allowing for normal wear and tear.

10. COMMON AREAS

The Lessee may use the shared facilities of the building (the "Common Facilities"), such as conference rooms, lounge areas, and outdoor spaces, in accordance with the Lessor's rules. The Lessee will pay, as additional rent, the cost of repairing any damage to the Common Facilities caused by the Lessee or its guests.

11. PARKING

The Lessee is entitled to use parking space(s) for itself, its guests, and employees, located at . The Lessee will pay $ for parking, if applicable.

12. STORAGE

The Lessee may use the following storage facilities: , for which the Lessee will pay $ , if applicable.

13. LICENSES AND PERMITS

The Lessee will keep copies of all local, state, and federal permits required for its use of the Premises on-site and available for inspection by the Lessor or any government official on request.

14. MAINTENANCE AND OBLIGATIONS OF LESSEE

The Lessee will keep the entrance and interior of the Premises neat, safe, and clean, and will perform minor repairs and routine maintenance (such as replacing light bulbs and cleaning windows and fixtures). The Lessee will promptly remove all rubbish and dispose of any hazardous waste in accordance with applicable law. The Lessee will not keep hazardous materials on the Premises. If the structure is damaged through the Lessee's neglect, the Lessee is responsible for the claims and repairs, and any damage not covered by insurance is the Lessee's liability.

15. LESSEE INSURANCE

If the Lessee fails to obtain or maintain the required insurance, the Lessor may obtain it and charge the cost to the Lessee as additional rent. The Lessee will not keep anything on the Premises that is prohibited by a standard fire insurance policy, and will pay any increase in insurance premiums caused by the Lessee's use of the Premises.

16. SUBLET AND ASSIGNMENT

The Lessee may not assign this Lease or sublet the Premises, in whole or in part, without the Lessor's prior written consent.

17. DAMAGE TO PREMISES

If the Premises are damaged or destroyed by fire or other casualty not caused by the Lessee, and the Lessee's use is affected, rent will be abated in proportion to the loss of use until the Lessor restores the Premises. The Lessor's obligation to restore will not exceed the insurance proceeds available for reconstruction.

18. DEFAULT AND REMEDIES

If the Lessee fails to pay rent or expenses when due, breaches any other term for more than fifteen (15) days after notice, or abandons the Premises, the Lessee is in default. On default, the Lessor may, at its option: (a) terminate this Lease and recover all resulting damages, including lost future rent; (b) repossess and re-enter the Premises, with or without terminating the Lease, and re-let it on terms the Lessor considers reasonable, with the Lessee liable for any deficiency; (c) declare the entire remaining rent immediately due and payable; and (d) pursue any other remedy available at law or in equity. The Lessor's remedies are cumulative. All costs of re-letting, repairs, and the Lessor's reasonable attorney's fees are the Lessee's responsibility.

19. REINSTATEMENT

If this Lease is terminated for any reason and the Lessee then pays all rent, attorney's fees, and other charges due and remains in possession with the Lessor's consent, the Lease will be considered reinstated and continue as though it had not been terminated.

20. INDEMNIFICATION

The Lessee will indemnify, defend, and hold the Lessor harmless from any claims or liabilities arising from the Lessee's use, occupancy, or control of the Premises, and from any losses the Lessor may suffer in connection with the same.

21. BANKRUPTCY OR INSOLVENCY

If the Lessee's assets are placed with a receiver or trustee for more than 30 days, the Lessee makes an assignment for the benefit of creditors, or the Lessee becomes bankrupt or insolvent, this Lease will not become an asset in those proceedings, and the Lessor may declare the Term ended and re-enter the Premises, in addition to any other remedy.

22. SUBORDINATION AND ATTORNMENT

At the Lessor's request, the Lessee will subordinate this Lease to any mortgage or ground lease now or later placed on the property, provided the Lessee's rights are not disturbed so long as it is not in default. In the event of a sale, foreclosure, or transfer of the Lessor's interest, the Lessee will attorn to and recognize the purchaser as the Lessor under this Lease.

23. ESTOPPEL CERTIFICATE

Within ten (10) days of the Lessor's written request, the Lessee will deliver a signed statement certifying that this Lease is in full force and effect (or noting any modifications), stating the dates through which rent has been paid, and stating whether the Lessor is in default.

24. HOLDOVER

If the Lessee remains in the Premises after the Term expires, whether or not with the Lessor's consent, the tenancy will be a tenancy at sufferance and not a month-to-month or year-to-year tenancy.

25. EMINENT DOMAIN AND CONDEMNATION

If all or a material part of the Premises is taken by eminent domain or condemnation, this Lease will end as of the date the authority takes possession, with rent prorated to that date. If only a non-material part is taken and the Lessee can reasonably continue to use the remainder, the Lease will continue with a just and proportionate rent abatement. The Lessor is entitled to the entire condemnation award, though the Lessee may separately claim moving expenses or the taking of its personal property from the condemning authority.

26. MISCELLANEOUS

(a) Compliance. The Lessee will comply with all laws and regulations applicable to its use of the Premises and will not do anything that violates the building's insurance policies or disturbs other tenants.

(b) Signs. The Lessee will not place any exterior sign or advertising without the Lessor's prior written consent, and will remove all signs and repair any damage on vacating.

(c) Condition of Premises. The Lessee has inspected the Premises and accepts them in their current "as is" condition. The Lessor makes no warranty as to the Premises' fitness for any particular use.

(d) Right of Entry. The Lessor and its agents may enter the Premises at reasonable times to inspect, show, or repair them.

(e) Quiet Enjoyment. So long as the Lessee pays rent and performs its obligations, it may peacefully and quietly enjoy the Premises for the Term.

(f) Binding Effect. This Lease binds and benefits the Parties and their respective successors, heirs, and permitted assigns.

27. ELECTRONIC SIGNATURES AND COUNTERPARTS

This Lease may be signed in counterparts, each of which is considered an original and which together form one agreement. Electronic signatures, and copies of signatures delivered by email or through an electronic signing service, have the same legal effect as handwritten signatures on an original document.

28. GENERAL PROVISIONS

(a) Governing Law. This Lease is governed by the laws of the State of , without regard to its conflict-of-law principles, and any litigation will be brought exclusively in the courts of County in that State, to whose jurisdiction and venue the Parties consent.

(b) Entire Agreement. This Agreement is the complete agreement between the parties and replaces any prior discussions, understandings, or agreements on this subject.

(c) Amendments. Any change to this Agreement must be in writing and signed by both parties.

(d) Severability. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full effect.

(e) Waiver. If a party does not enforce a provision, it does not give up its right to enforce that or any other provision later.

(f) Assignment. Neither party may assign or transfer this Agreement without the other party's prior written consent.

(g) Notices. Any notice under this Agreement must be given in writing (email is acceptable) to the other party.

IN WITNESS WHEREOF, the Parties have signed this Lease as of the date first written above.