Fill - Free fillable COMMERCIAL LEASE AGREEMENT PDF form

Page 1 of 9

COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement made on ______________ (mm/dd/yyyy) by and

between __________________________________, the “Landlord” and

__________________________________, the “Tenant”. The Landlord and Tenant are

collectively referred to in this Lease Agreement as the “Parties”.

Landlord is the owner of land and improvements commonly known and numbered as

________________________ (Building Name) situated in ________________________

___________________________ (Building Address), and legally described as follows

(the "Building"): __________________________________________________________

_____________________________________________, (Legal Description of Building).

THEREFORE, in consideration of the mutual promises herein, contained and other good

and valuable consideration, it is agreed:

1. LEASE TERM. Landlord hereby leases the Leased Premises to Tenant, and Tenant

hereby leases the same from Landlord, for an "Initial Term" beginning

______________ (mm/dd/yyyy), and ending on ______________ (mm/dd/yyyy).

Landlord shall use its best efforts to give Tenant possession as nearly as possible at

the beginning of the Lease term. If Landlord is unable to timely provide the Leased

Premises, rent shall abate for the period of delay. Tenant shall make no other claim

against Landlord for any such delay.

2. RENT. Tenant shall pay to Landlord during the Initial Term rental of $_____________

per year, payable in installments of $_____________ per month. Each installment

payment shall be due in advance on the first day of each calendar month during the

lease term to Landlord at or at such other place

designated by written notice from Landlord or Tenant. The rental payment amount for

any partial calendar months included in the lease term shall be prorated on a daily

basis.

3. SECURITY DEPOSIT. In addition to the above, a deposit in the amount of

$_____________ shall be due and payable in advance or at the signing of this Lease

Page 2 of 9

Agreement, hereinafter referred to as the “Security Deposit”, and shall be held in

escrow by the Lessor in a separate, interest-bearing savings account as security for

the faithful performance of the terms and conditions of the Lease. The Security

Deposit may not be used to pay the last month’s rent unless written permission is

granted by the Lessor.

4. USE. Notwithstanding the forgoing, Tenant shall not use the Leased Premises for the

purposes of storing, manufacturing or selling any explosives, flammables or other

inherently dangerous substance, chemical, thing or device.

5. EXPENSES. Check whether this lease will be Triple Net (NNN), Modified Gross, or

Gross.

☐ - Triple Net (NNN). Landlord and Tenant acknowledge and agree that this

Lease is intended to operate, function, and be interpreted as a triple

net lease. Accordingly, except as expressly provided in this Lease, (i)

Tenant shall be responsible for all costs and expenses associated with the

Building and Premises, and (ii) Landlord shall have no responsibility for

making any expenditure or for incurring any obligation, cost, expense, or

liability of any kind whatsoever in connection with this Lease or the

ownership, alteration, maintenance, operation, repair, or replacement of the

Building and Premises.

☐ - Modified Gross. This Lease is hereby considered a Modified Gross Lease; the

Lessor shall pay the following expenses for the duration of the lease:

__________________________________________________________________

_________________________________________________________________.

The Lessee shall pay the following monthly expenses in addition to the Base

Rent:

__________________________________________________________________

_________________________________________________________________.

☐ - Gross Lease. This shall be a gross Lease; however, it is intended that

Page 3 of 9

Base Rent shall be paid to Landlord absolutely net of all costs and expenses

other than Operating Expenses each year equal to Tenants Proportionate

Share of Base Year Operating Expenses, except as otherwise specifically

provided to the contrary in this Lease. The provisions for payment of

increases in Operating Expenses and the Operating Expense Adjustment

are intended to pass on to Tenant and reimburse Landlord for all costs and

expenses incurred in connection with the ownership, management, maintenance,

repair, preservation, replacement and operation of the Building and its supporting

facilities and such additional facilities in excess of the Base Year Operating

Expenses, now and in subsequent years as may be determined by Landlord to be

necessary or desirable to the Building, provided that Landlord shall use its

reasonable efforts to minimize Operating Expenses in a manner consistent with

good business practices.

6. NOTICE. Any notice required or permitted under this Lease shall be deemed

sufficiently given or served if sent by United States certified mail, return receipt

requested, addressed as follows:

Landlord Notice Address: .

Tenant Notice Address: .

Landlord and Tenant shall each have the right from time to time to change the place

notice is to be given under this paragraph by written notice thereof to the other party.

7. BROKERS. Check One (1):

☐ - Tenant represents that Tenant was not shown the Premises by any real estate

broker or agent and that Tenant has not otherwise engaged in, any activity which

could form the basis for a claim for real estate commission, brokerage fee, finder's

fee or other similar charge, in connection with this Lease.

☐ - Tenant was shown the property by _________________________ who is a

licensed real estate agent in the State of _____________ from

_________________________ Agency. Landlord and Tenant agree to abide by the

signing party’s listing agreement and to pay the commission amount specified.

Page 4 of 9

8. DAMAGE AND DESTRUCTION. If the Leased Premises or any part thereof or any

appurtenance thereto is so damaged by fire, casualty or structural defects that the

same cannot be used for Tenant's purposes, then Tenant shall have the right within

_____ days following damage to elect by notice to Landlord to terminate this Lease

as of the date of such damage. In the event of minor damage to any part of the

Leased Premises, and if such damage does not render the Leased Premises

unusable for Tenant's purposes, Landlord shall promptly repair such damage at the

cost of the Landlord. In making the repairs called for in this paragraph, Landlord shall

not be liable for any delays resulting from strikes, governmental restrictions, inability

to obtain necessary materials or labor or other matters which are beyond the

reasonable control of Landlord. Tenant shall be relieved from paying rent and other

charges during any portion of the Lease term that the Leased Premises are

inoperable or unfit for occupancy, or use, in whole or in part, for Tenant's purposes.

Rentals and other charges paid in advance for any such periods shall be credited on

the next ensuing payments, if any, but if no further payments are to be made, any

such advance payments shall be refunded to Tenant. The provisions of this

paragraph extend not only to the matters aforesaid, but also to any occurrence which

is beyond Tenant's reasonable control and which renders the Leased Premises, or

any appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in

part, for Tenant's purposes.

9. DEFAULT. If default shall at any time be made by Tenant in the payment of rent

when due to Landlord as herein provided, and if said default shall continue for _____

days after written notice thereof shall have been given to Tenant by Landlord, or if

default shall be made in any of the other covenants or conditions to be kept,

observed and performed by Tenant, and such default shall continue for thirty (30)

days after notice thereof in writing to Tenant by Landlord without correction thereof

then having been commenced and thereafter diligently prosecuted, Landlord may

declare the term of this Lease ended and terminated by giving Tenant written notice

of such intention, and if possession of the Leased Premises is not surrendered,

Landlord may reenter said premises. Landlord shall have, in addition to the remedy

above provided, any other right or remedy available to Landlord on account of any

Tenant default, either in law or equity. Landlord shall use reasonable efforts to

mitigate its damages.

Page 5 of 9

10. SUBLEASE AND ASSIGNMENT. Tenant shall have the right without Landlord's

consent, to assign this Lease to a corporation with which Tenant may merge or

consolidate, to any subsidiary of Tenant, to any corporation under common control

with Tenant, or to a purchaser of substantially all of Tenant's asset s. Except as set

forth above, Tenant shall not sublease all or any part of the Leased Premises, or

assign this Lease Agreement in whole or in part without Landlord's consent, such

consent not to be unreasonably withheld or delayed.

11. ALTERATIONS AND IMPROVEMENTS. Tenant, at Tenant's expense, shall have the

right following Landlord's consent to remodel, redecorate, and make additions,

improvements and replacements of and to all or any part of the Leased Premises

from time to time as Tenant may deem desirable, provided the same are made in a

workmanlike manner and utilizing good quality materials. Tenant shall have the right

to place and install personal property, trade fixtures, equipment and other temporary

installations in and upon the Leased Premises, and fasten the same to the premises.

All personal property, equipment, machinery, trade fixtures and temporary

installations, whether acquired by Tenant at the commencement of the Lease term or

placed or installed on the Leased Premises by Tenant thereafter, shall remain

Tenant's property free and clear of any claim by Landlord. Tenant shall have the right

to remove the same at any time during the term of this Lease provided that all

damage to the Leased Premises caused by such removal shall be repaired by Tenant

at Tenant's expense.

12. SIGNS. Following Landlord's consent, Tenant shall have the right to place on the

Leased Premises, at locations selected by Tenant, any signs which are permitted by

applicable zoning ordinances and private restrictions. Landlord may refuse consent to

any proposed signage that is in Landlord's opinion too large, deceptive, unattractive

or otherwise inconsistent with or inappropriate to the Leased Premises or use of any

other tenant. Landlord shall assist and cooperate with Tenant in obtaining any

necessary permission from governmental authorities or adjoining owners and

occupants for Tenant to place or construct the foregoing signs. Tenant shall repair all

damage to the Leased Premises resulting from the removal of signs installed by

Tenant.

Page 6 of 9

13. ENTRY. Landlord shall have the right to enter upon the Leased Premises at

reasonable hours to inspect the same, provided Landlord shall not thereby

unreasonably interfere with Tenant's business on the Leased Premises.

14. PARKING. During the term of this Lease Agreement, Tenant shall have the non -

exclusive use in common with Landlord, other tenants of the Building, their guests

and invitees, of the non-reserved common automobile parking areas, driveways, and

footways, subject to rules and regulations for the use thereof as prescribed from time

to time by Landlord. Landlord reserves the right to designate parking areas within the

Building or in reasonable proximity thereto, for Tenant and Tenant's agents and

employees.

15. BUILDING RULES. Tenant will comply with the rules of the Building adopted and

altered by Landlord from time to time and will cause all of its agents, employees,

invitees and visitors to do so; all changes to such rules will be sent by Landlord to

Tenant in writing. The initial rules for the Building are attached hereto as Exhibit "A"

and incorporated herein for all purposes.

16. QUIET POSSESSION. Landlord covenants and warrants that upon performance by

Tenant of its obligations hereunder, Landlord will keep and maintain Tenant in

exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the

Leased Premises during the term of this Lease.

17. CONDEMNATION. If any legally, constituted authority condemns the Building or such

part thereof which shall make the Leased Premises unsuitable for leasing, this Lease

shall cease when the public authority takes possession, and Landlord and Tenant

shall account for rental as of that date. Such termination shall be without prejudice to

the rights of either party to recover compensation from the condemning authority for

any loss or damage caused by the condemnation. Neither party shall have any rights

in or to any award made to the other by the condemning authority.

18. SUBORDINATION. Tenant accepts this Lease subject and subordinate to any

mortgage, deed of trust or other lien presently existing or hereafter arising upon the

Leased Premises, or upon the Building and to any renewals, refinancing and

Page 7 of 9

extensions thereof, but Tenant agrees that any such mortgagee shall have the right

at any time to subordinate such mortgage, deed of trust or other lien to this Lease on

such terms and subject to such conditions as such mortgagee may deem appropriate

in its discretion. Landlord is hereby irrevocably vested with full power and authority to

subordinate this Lease to any mortgage, deed of trust or other lien now existing or

hereafter placed upon the Leased Premises of the Building, and Tenant agrees upon

demand to execute such further instruments subordinating this Lease or attorning to

the holder of any such liens as Landlord may request. In the event that Tenant should

fail to execute any instrument of subordination herein require d to be executed by

Tenant promptly as requested, Tenant hereby irrevocably constitutes Landlord as its

attorney -in -fact to execute such instrument in Tenant's name, place and stead, it

being agreed that such power is one coupled with an interest. Tenant agrees that it

will from time to time upon request by Landlord execute and deliver to such persons

as Landlord shall request a statement in recordable form certifying that this Lease is

unmodified and in full force and effect (or if there have been modifications, that the

same is in full force and effect as so modified), stating the dates to which rent and

other charges payable under this Lease have been paid, stating that Landlord is not

in default hereunder (or if Tenant alleges a default stating the nature of such alleged

default) and further stating such other matters as Landlord shall reasonably require.

19. WAIVER. No waiver of any default of Landlord or Tenant hereunder shall be implied

from any omission to take any action on account of such default if such default

persists or is repeated, and no express waiver shall affect any default other than the

default specified in the express waiver and that only for the time and to the extent

therein stated. One or more waivers by Landlord or Tenant shall not be construed as

a waiver of a subsequent breach of the same covenant, term or condition.

20. MEMORANDOM OF LEASE. The parties hereto contemplate that this Lease should

not and shall not be filed for record, but in lieu thereof, at the request of either party,

Landlord and Tenant shall execute a Memorandum of Lease to be recorded for the

purpose of giving record notice of the appropriate provisions of this Lease.

21. HEADINGS. The headings used in this Lease are for convenience of the parties only

and shall not be considered in interpreting the meaning of any provision of this Lease.

Page 8 of 9

22. SUCCESSORS. The provisions of this Lease shall extend to and be binding upon

Landlord and Tenant and their respective legal representatives, successors and

assigns.

23. CONSENT. Landlord shall not unreasonably withhold or delay its consent with

respect to any matter for which Landlord's consent is required or desirable under this

Lease.

24. COMPLIANCE WITH LAW. Tenant shall comply with all laws, orders, ordinances

and other public requirements now or hereafter pertaining to Tenant's use of the

Leased Premises. Landlord shall comply with all laws, orders, ordinances and other

public requirements now or hereafter affecting the Leased Premises.

25. FINAL AGREEMENT. This Agreement terminates and supersedes all prior

understandings or agreements on the subject matter hereof. This Agreement may be

modified only by a further writing that is duly executed by both parties.

26. GOVERNING LAW. This Agreement shall be governed by the laws of the state of

_____________________.

27. REQUIRED DISCLOSURES / PROVISIONS

____________________________________________________________________

___________________________________________________________________.

Page 9 of 9

IN WITNESS WHEREOF, the parties hereto set their hands and seal this _____ day of

__________________ (month), 20____.

Landlord Signature: Date: _____________ (mm/dd/yyyy)