COMMERCIAL LEASE AGREEMENT

TABLE OF CONTENTS

1. Parties and Premises
2. Term
3. Rent and Additional Charges
4. Security Deposit
5. Use of Premises
6. Maintenance and Repairs
7. Alterations and Improvements
8. Insurance
9. Indemnification
10. Assignment and Subletting
11. Default and Remedies
12. Termination and Surrender
13. General Provisions
14. Signatures

1. PARTIES AND PREMISES

This Commercial Lease Agreement ("Lease") is made as of [__/__/____] between:

LANDLORD:
Name/Entity: [________________________________]
Address: [________________________________]
State of Organization: [________________]
Contact: [________________________________]

TENANT:
Name/Entity: [________________________________]
Address: [________________________________]
State of Organization: [________________]
Contact: [________________________________]

PREMISES:
Address: [________________________________]
Suite/Unit: [________________]
Rentable Square Feet: [________________]
Usable Square Feet: [________________]
Building Name: [________________________________]
Common Area Factor / Load Factor: [____]%

Permitted Use: [________________________________]
Zoning Classification: [________________]

2. TERM

2.1 Lease Term: [____] years, commencing [__/__/____] and expiring [__/__/____].

2.2 Early Occupancy / Build-Out Period: ☐ Tenant may access premises beginning [__/__/____] for build-out purposes. No rent is due during build-out period.

2.3 Renewal Options:
☐ Tenant has [____] option(s) to renew for additional [____]-year term(s) each, upon [____] days' written notice prior to expiration.
☐ Renewal rent: ☐ Fair market value ☐ [____]% increase over then-current rent ☐ CPI adjustment

2.4 Right of First Refusal: ☐ Tenant has a right of first refusal for adjacent space: [________________________________]

3. RENT AND ADDITIONAL CHARGES

3.1 Lease Type:
☐ Gross Lease — Landlord pays all operating expenses
☐ Modified Gross Lease — expenses shared as specified below
☐ Triple Net (NNN) Lease — Tenant pays base rent plus property taxes, insurance, and CAM
☐ Percentage Lease — Base rent plus percentage of gross sales

3.2 Base Rent:

3.3 Rent Escalation: ☐ Fixed: [____]% annually ☐ CPI-based ☐ Fair market value adjustment in Year [____]

3.4 Additional Rent (NNN / Operating Expenses):

3.5 CAM Reconciliation. Within [____] days after the end of each calendar year, Landlord shall provide Tenant with a statement of actual operating expenses. Any overpayment shall be credited to Tenant; any underpayment shall be due within [____] days.

3.6 CAM Audit Rights. Tenant may audit Landlord's operating expense records once per year upon [____] days' written notice. If audit reveals overcharges exceeding [____]%, Landlord shall reimburse Tenant's audit costs.

3.7 Late Fee: $[________] or [____]% of overdue amount per month.

3.8 Percentage Rent (if applicable): [____]% of gross sales exceeding $[________________] ("Breakpoint").

4. SECURITY DEPOSIT

Amount: $[________________]
Letter of Credit Alternative: ☐ Tenant may substitute an irrevocable standby letter of credit.
Return: Within [____] days after lease termination, less permitted deductions.

5. USE OF PREMISES

5.1 Permitted Use. Tenant shall use the premises exclusively for [________________________________].

5.2 Exclusive Use. ☐ Landlord grants Tenant exclusive right to operate [________________________________] within the building/center.

5.3 Compliance. Tenant shall comply with all applicable laws, ordinances, zoning regulations, and the ADA (42 U.S.C. § 12183).

5.4 Hazardous Materials. Tenant shall not store, use, or dispose of hazardous materials except: [________________________________]. Tenant shall comply with all environmental laws.

5.5 Signage. ☐ Tenant may install signage subject to Landlord approval and local ordinance: [________________________________].

6. MAINTENANCE AND REPAIRS

6.1 Landlord Responsibilities:
☐ Structural elements (roof, foundation, exterior walls)
☐ Building systems (HVAC base system, plumbing mains, electrical mains)
☐ Common areas (lobbies, hallways, parking, landscaping)
☐ ADA compliance for common areas

6.2 Tenant Responsibilities:
☐ Interior maintenance and repairs
☐ HVAC maintenance within demised premises (or HVAC serving exclusively the premises)
☐ Plumbing and electrical within premises
☐ Interior painting, flooring, and fixtures
☐ Storefront maintenance (retail)
☐ Pest control within premises

7. ALTERATIONS AND IMPROVEMENTS

7.1 Tenant Improvements. Landlord shall provide a tenant improvement allowance of $[________] per square foot ($[________________] total). Work shall be performed pursuant to plans approved by Landlord.

7.2 Subsequent Alterations. Tenant shall not make alterations exceeding $[________________] without Landlord's prior written consent, which shall not be unreasonably withheld.

7.3 Removal. Upon lease expiration, Tenant shall ☐ remove all alterations and restore premises ☐ leave alterations in place as Landlord's property ☐ per Landlord's election at time of approval.

8. INSURANCE

8.1 Tenant's Insurance:
☐ Commercial general liability: $[________________] per occurrence / $[________________] aggregate
☐ Property insurance covering tenant's improvements and personal property
☐ Workers' compensation as required by law
☐ Business interruption insurance (recommended)
☐ Landlord named as additional insured

8.2 Landlord's Insurance:
☐ Property insurance on the building structure
☐ Commercial general liability for common areas

8.3 Waiver of Subrogation. Each party waives any right of subrogation against the other party for losses covered by the waiving party's insurance.

9. INDEMNIFICATION

Tenant shall indemnify, defend, and hold Landlord harmless from all claims, damages, and expenses arising from Tenant's use or occupancy of the premises, except to the extent caused by Landlord's negligence or willful misconduct.

Landlord shall indemnify, defend, and hold Tenant harmless from all claims arising from Landlord's negligence or willful misconduct in maintaining common areas and building structure.

10. ASSIGNMENT AND SUBLETTING

10.1 Tenant shall not assign this Lease or sublet the premises without Landlord's prior written consent, which shall not be unreasonably withheld.

10.2 Landlord may withhold consent if: [________________________________].

10.3 Recapture Right. ☐ Landlord has the right to recapture the space upon Tenant's request to sublet.

10.4 Profit Sharing. If Tenant sublets at a rate exceeding Tenant's rent, [____]% of the excess shall be paid to Landlord.

11. DEFAULT AND REMEDIES

11.1 Tenant Default:
☐ Failure to pay rent within [____] days after written notice
☐ Failure to perform any non-monetary obligation within [____] days after written notice
☐ Bankruptcy or insolvency
☐ Abandonment

11.2 Landlord Remedies:
☐ Terminate the Lease and recover damages
☐ Accelerate rent for the remaining term (where permitted)
☐ Re-enter and relet premises; Tenant liable for deficiency
☐ Pursue specific performance

11.3 Landlord Default. If Landlord fails to perform any obligation within [____] days after written notice (or longer if reasonably necessary), Tenant may: ☐ pursue damages ☐ exercise self-help and offset against rent (with limitations) ☐ terminate lease for material breach.

12. TERMINATION AND SURRENDER

12.1 Upon expiration or termination, Tenant shall surrender premises in good condition, ordinary wear and tear excepted.

12.2 Holdover. If Tenant remains after expiration without consent, Tenant shall pay holdover rent of [____]% of the then-current monthly rent ([____]% is typical) for each month of holdover.

12.3 Tenant's Property. Tenant shall remove all trade fixtures and personal property. Property not removed within [____] days shall be deemed abandoned.

13. GENERAL PROVISIONS

13.1 Governing Law. State of [________________].
13.2 Jury Waiver. ☐ Both parties waive the right to a jury trial in any dispute arising under this Lease.
13.3 Dispute Resolution. ☐ Arbitration ☐ Mediation first, then litigation ☐ Litigation only.
13.4 Force Majeure. Neither party shall be liable for delays caused by acts of God, war, pandemic, government action, or other events beyond reasonable control.
13.5 Subordination / Attornment. This Lease is subordinate to any mortgage, provided the mortgagee agrees to a non-disturbance agreement for Tenant.
13.6 Estoppel Certificates. Each party shall execute estoppel certificates within [____] days of request.
13.7 Notices. All notices shall be in writing and sent to the addresses above via certified mail or recognized overnight carrier.
13.8 Entire Agreement. This Lease constitutes the entire agreement between the parties.
13.9 Severability. Invalid provisions shall not affect remaining provisions.
13.10 Attorney's Fees. Prevailing party in any enforcement action entitled to reasonable attorney's fees.

14. SIGNATURES

LANDLORD:

_______________________________
By: [________________________________]
Title: [________________________________]
Date: [__/__/____]

TENANT:

_______________________________
By: [________________________________]
Title: [________________________________]
Date: [__/__/____]

PERSONAL GUARANTEE (if required):

The undersigned personally guarantees all obligations of Tenant under this Lease.

_______________________________
[GUARANTOR NAME]
Date: [__/__/____]

This template is for informational purposes only. Commercial leases are complex and heavily negotiated. Consult a qualified real estate attorney before execution.