COMMERCIAL LEASE AGREEMENT

(Louisiana – Court-Ready Template)

[// GUIDANCE: This template is drafted under Louisiana law for a multi-tenant or single-tenant commercial property. All bracketed fields must be completed or revised before execution. Delete all guidance comments prior to finalization.]

TABLE OF CONTENTS

1. Definitions
2. Lease of Premises; Term
3. Rent; Additional Charges
4. Security Deposit
5. Use of Premises; Compliance with Laws
6. Maintenance and Repairs
7. Alterations and Improvements
8. Assignment and Subletting
9. Insurance
10. Indemnification; Limitation of Liability
11. Utilities and Services
12. Taxes and Assessments
13. Damage or Destruction
14. Condemnation
15. Default; Remedies
16. Dispute Resolution
17. Quiet Enjoyment
18. Notices
19. Estoppel Certificates
20. Subordination; Non-Disturbance; Attornment
21. Holding Over
22. Environmental Matters
23. Miscellaneous
24. Execution

I. DOCUMENT HEADER

COMMERCIAL LEASE AGREEMENT (this “Agreement”) made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

[LANDLORD LEGAL NAME], a [STATE] [ENTITY TYPE], with its principal place of business at [ADDRESS] (“Landlord”), and

[TENANT LEGAL NAME], a [STATE] [ENTITY TYPE], with its principal place of business at [ADDRESS] (“Tenant”).

Landlord and Tenant are sometimes referred to individually as a “Party” and collectively as the “Parties.”

RECITALS

A. Landlord is the fee simple owner of certain real property located at [STREET ADDRESS, CITY, PARISH, LA ZIP], together with the improvements thereon (the “Building”).
B. Tenant desires to lease from Landlord, and Landlord desires to lease to Tenant, approximately [SQUARE FEET] of rentable area identified as Suite [__] (the “Premises”), on the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

II. DEFINITIONS

For ease of reference, certain capitalized terms used herein shall have the meanings set forth below. Terms defined in the singular include the plural and vice-versa.

“Additional Rent” – Any and all amounts other than Base Rent that Tenant is required to pay under this Agreement.
“Base Rent” – The fixed rental amount set forth in Section 3.1.
“Building Systems” – The mechanical, electrical, plumbing, HVAC, fire/life safety, utility, and other building service systems.
“Business Days” – All days excluding Saturdays, Sundays, and Louisiana state-recognized legal holidays.
“Commencement Date” – The earlier of (a) [DATE] or (b) the date Tenant first occupies all or any portion of the Premises for the conduct of business, as certified in the Commencement Date Certificate (Exhibit C).
“Event of Default” – Any event described in Section 15.1.
“Force Majeure” – Any event beyond a Party’s reasonable control, including acts of God, war, terrorism, civil unrest, epidemic, governmental orders, or shortages of materials or labor.
“Hazardous Materials” – Any substance regulated by applicable Environmental Laws, including petroleum products, asbestos, polychlorinated biphenyls, and lead-based paint.
“Lease Year” – Each consecutive twelve (12) month period beginning on the Commencement Date.
“Operating Expenses” – As defined in Section 3.2(b).
“Permitted Use” – The use specified in Section 5.1.

[// GUIDANCE: Add, modify, or delete defined terms as necessary to match deal specifics.]

III. OPERATIVE PROVISIONS

1. Lease of Premises; Term

1.1 Lease Grant. Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord, subject to the terms of this Agreement and all recorded covenants, restrictions, easements, and zoning regulations (collectively, “Legal Requirements”).
1.2 Term. The term (the “Term”) shall commence on the Commencement Date and continue for [NUMBER] (__) years unless sooner terminated pursuant to this Agreement.
1.3 Option(s) to Renew. Tenant shall have [__] option(s) to renew for [__] years each, exercisable per Exhibit B.

2. Rent; Additional Charges

2.1 Base Rent. Beginning on the Commencement Date, Tenant shall pay Base Rent in the following amounts:

Base Rent shall be due in advance on or before the first (1st) day of each calendar month.
2.2 Additional Rent. Tenant shall pay:
(a) Tenant’s Proportionate Share (defined in Exhibit A) of Operating Expenses;
(b) all utilities per Section 11;
(c) all Taxes per Section 12; and
(d) any other sums due under this Agreement.
2.3 Late Charges; Interest. If any payment is not received within five (5) Business Days after written notice, Tenant shall pay a late charge equal to [__]% of the overdue amount plus interest at the lesser of eighteen percent (18%) per annum or the maximum rate permitted by La. Civil Code art. 2000.

3. Security Deposit

3.1 Amount. Upon execution, Tenant shall deliver a security deposit of $[__] (the “Security Deposit”).
3.2 Application. Landlord may, without prejudice to other remedies, apply the Security Deposit to cure any Event of Default. Tenant shall replenish the Security Deposit within ten (10) days after written demand.
3.3 Return. Within thirty (30) days following the later of (a) expiration of the Term or earlier termination, and (b) Tenant’s surrender of possession, Landlord shall return any unapplied balance, without interest.

4. Use of Premises; Compliance with Laws

4.1 Permitted Use. Tenant shall use the Premises solely for [DESCRIBE BUSINESS USE] and for no other purpose without Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed.
4.2 Compliance. Tenant shall, at its expense, comply with (a) all federal, state, and local laws (including La. R.S. 30:2001 et seq. (Louisiana Environmental Quality Act)) and (b) all Rules and Regulations (Exhibit D).
4.3 Prohibited Uses. Tenant shall not (a) create a nuisance, (b) engage in any hazardous activity, or (c) use, store, or dispose of Hazardous Materials except as incidental to the Permitted Use and in strict accordance with Environmental Laws.

5. Maintenance and Repairs

5.1 Tenant’s Obligations. Tenant, at its expense, shall keep the Premises (excluding structural elements and Building Systems serving more than the Premises) in good order and condition.
5.2 Landlord’s Obligations. Landlord shall maintain the roof, exterior walls, foundations, and Building Systems. Costs may be included in Operating Expenses except as limited by Section 3.2(b).
5.3 Service Contracts. Tenant shall maintain customary service contracts for HVAC and fire-life safety systems exclusively serving the Premises.

6. Alterations and Improvements

6.1 Consent Required. Tenant shall not make any Alterations without Landlord’s prior written consent, not to be unreasonably withheld.
6.2 Removal; Restoration. Landlord may require Tenant to remove, at Tenant’s expense, any Alterations upon expiration or termination and restore the Premises to its original condition, reasonable wear excepted.

7. Assignment and Subletting

7.1 Landlord Consent. Except as provided in Section 7.3, Tenant shall not assign, sublet, mortgage, or encumber its leasehold without Landlord’s prior written consent, which consent shall not be unreasonably withheld, consistent with La. Civil Code art. 2713.
7.2 Landlord’s Recapture Right. Landlord may, within thirty (30) days after receipt of a Transfer Notice, elect to recapture the space proposed to be transferred.
7.3 Permitted Transfers. No consent shall be required for (a) a transfer to an Affiliate, or (b) a merger, consolidation, or sale of substantially all assets, provided that the successor entity has a net worth equal to or greater than Tenant’s as of the Effective Date and assumes this Agreement in writing.
7.4 No Release. Any assignment or sublease shall not release Tenant from liability.

8. Insurance

8.1 Tenant Insurance. Tenant shall maintain the following:
(a) Commercial General Liability: $[] per occurrence / $[] aggregate;
(b) Property/Business Interruption Insurance covering Tenant’s property and improvements;
(c) Workers’ Compensation per statutory limits; and
(d) Pollution Legal Liability if Tenant handles Hazardous Materials beyond incidental quantities.
8.2 Landlord Insurance. Landlord shall maintain “all risk” property insurance on the Building and commercial general liability insurance.
8.3 Certificates. Certificates evidencing required coverages shall be delivered prior to occupancy and upon renewals.

9. Indemnification; Limitation of Liability

9.1 Tenant Indemnity. Tenant shall indemnify, defend, and hold harmless Landlord, its affiliates, and their respective agents (“Landlord Indemnitees”) from and against any and all claims, liabilities, damages, and expenses arising from (a) Tenant’s use or occupancy of the Premises, (b) the conduct of Tenant’s business, (c) any breach by Tenant, or (d) the negligent or wrongful acts or omissions of Tenant or its invitees, except to the extent caused by the gross negligence or willful misconduct of Landlord.
9.2 Landlord Indemnity. Landlord shall indemnify Tenant from claims arising out of Landlord’s gross negligence or willful misconduct.
9.3 Limitation of Liability. EXCEPT FOR (a) WILLFUL MISCONDUCT, (b) GROSS NEGLIGENCE, OR (c) MATTERS SUBJECT TO INDEMNIFICATION, NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES. Landlord’s aggregate liability shall not exceed [CAP AMOUNT OR “__ TIMES ANNUAL BASE RENT”].

10. Utilities and Services

Tenant shall pay, before delinquency, all charges for utilities serving the Premises and shall obtain separate meters where feasible. Interruption of utilities due to causes beyond Landlord’s control shall not constitute constructive eviction or grounds for rent abatement, except as provided in Section 13.

11. Taxes and Assessments

11.1 Real Estate Taxes. Tenant shall pay its Proportionate Share of Real Estate Taxes as Additional Rent.
11.2 Personal Property Taxes. Tenant shall pay all taxes on its personal property and trade fixtures.

12. Damage or Destruction

If the Premises are damaged by casualty, the Parties shall proceed in accordance with Exhibit E. Generally, Landlord shall repair within a commercially reasonable time; Tenant’s rent shall proportionally abate during the period of material untenantability, except where the casualty is caused by Tenant’s fault.

13. Condemnation

In the event of a taking of all or substantially all of the Premises, this Agreement shall terminate as of the date possession is taken. Awards shall belong to Landlord, except Tenant may claim relocation costs and the unamortized value of Tenant-paid improvements.

14. Default; Remedies

14.1 Events of Default. The occurrence of any of the following shall constitute an Event of Default:
(a) Failure to pay any Rent within five (5) Business Days after written notice;
(b) Failure to perform any non-monetary obligation within thirty (30) days after written notice (or such longer period as reasonably required if cure is commenced promptly and diligently pursued);
(c) Abandonment of the Premises;
(d) Insolvency or bankruptcy filings not dismissed within sixty (60) days;
(e) Assignment for the benefit of creditors.
14.2 Remedies. Upon an Event of Default, Landlord may, subject to La. Code Civ. Proc. arts. 4701-4735:
(a) Demand and accelerate all Rent;
(b) Terminate this Agreement and repossess the Premises through summary eviction (“Rule to Evict”);
(c) Relet the Premises at Tenant’s cost;
(d) Pursue injunctive relief, specific performance, and any other remedy at law or in equity; and
(e) Recover reasonable attorneys’ fees and costs.
14.3 Waiver of Notice to Vacate. To the fullest extent permitted by law, Tenant waives the notice to vacate requirements under La. Code Civ. Proc. art. 4701; provided, however, that Landlord shall give Tenant at least five (5) calendar days’ written notice of default before filing eviction proceedings.

[// GUIDANCE: Louisiana courts strictly construe waiver clauses. Delete or modify Section 14.3 if client risk tolerance is low.]

15. Dispute Resolution

15.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Louisiana, without regard to its conflict of laws principles.
15.2 Forum Selection. The Parties irrevocably submit to the exclusive jurisdiction of the state courts located in [PARISH] Parish, Louisiana for any suit, action, or proceeding arising out of or relating to this Agreement, except as provided in Section 15.3.
15.3 Optional Arbitration. [CHECK ONE] ☐ Included ☐ Omitted
If “Included” is checked, any dispute (other than actions for eviction or injunctive relief) shall be finally resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. The seat of arbitration shall be [CITY, LA]. Judgment on the award may be entered in any court of competent jurisdiction.
15.4 Jury Waiver. [CHECK ONE] ☐ Waived ☐ Not Waived
If “Waived” is checked, each Party waives trial by jury to the fullest extent permitted by law.
15.5 Equitable Relief. Nothing in this Section limits either Party’s right to seek temporary, preliminary, or permanent injunctive relief, including eviction-related injunctions.

16. Quiet Enjoyment

Provided Tenant performs its obligations, Tenant shall quietly enjoy the Premises without interference from Landlord or any person claiming by, through, or under Landlord.

17. Notices

All notices shall be in writing and deemed given (a) upon delivery by hand, (b) one (1) Business Day after deposit with a nationally recognized overnight courier, or (c) three (3) days after mailing by certified mail, return receipt requested, postage prepaid, to the addresses set forth below (or as changed by notice). Email alone is insufficient for notices that trigger cure periods.

18. Estoppel Certificates

Within ten (10) Business Days after request, Tenant shall execute and deliver an estoppel certificate certifying (a) whether the Agreement is in full force, (b) the Commencement Date and expiration date, (c) the amount of Rent paid and due, and (d) any known defaults.

19. Subordination; Non-Disturbance; Attornment

This Agreement is subordinate to any mortgage now or hereafter placed upon the Building, provided that Landlord shall obtain a non-disturbance agreement from any future mortgagee in favor of Tenant on such mortgagee’s standard form.

20. Holding Over

If Tenant remains in possession after expiration without Landlord’s written consent, such tenancy shall be month-to-month, and Rent shall equal one hundred fifty percent (150%) of the Base Rent payable during the last month of the Term, plus Additional Rent. All other provisions shall remain in effect.

21. Environmental Matters

21.1 Tenant Compliance. Tenant shall, at its expense, strictly comply with all Environmental Laws and shall not release any Hazardous Materials on or about the Premises.
21.2 Indemnity. Tenant shall indemnify Landlord from any liabilities arising from Tenant’s Environmental Activities.
21.3 Environmental Inspections. Landlord may conduct environmental audits upon reasonable advance notice.
21.4 Survival. The obligations under this Section survive expiration or termination.

22. Miscellaneous

22.1 Amendment; Waiver. No amendment or waiver shall be effective unless in writing signed by both Parties.
22.2 Entire Agreement. This Agreement, including Exhibits, constitutes the entire agreement and supersedes all prior negotiations.
22.3 Severability. If any provision is invalid, the remainder shall be enforced to the maximum extent possible.
22.4 Successors and Assigns. This Agreement binds and benefits the Parties and their permitted successors and assigns.
22.5 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is an original, and via electronic signature in compliance with La. R.S. 9:2601 et seq. (Louisiana Uniform Electronic Transactions Act).
22.6 Force Majeure. Neither Party shall be liable for failure to perform due to Force Majeure, provided the impacted Party gives prompt notice and resumes performance as soon as practicable.
22.7 Time Is of the Essence. Time is of the essence in the performance of all obligations.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

LANDLORD:
[LANDLORD LEGAL NAME]
By: _____
Name: ____
Title: ____
Date: ____

TENANT:
[TENANT LEGAL NAME]
By: _____
Name: ____
Title: ____
Date: ____

[SEAL, if applicable]

NOTARY ACKNOWLEDGMENT
State of Louisiana
Parish of ____

On this _ day of _, 20_, before me, the undersigned Notary Public, personally appeared ________, duly authorized to execute this instrument, and acknowledged execution on behalf of the respective Party.

Notary Public
My commission expires: _______

EXHIBITS (to be attached)

A. Premises Description and Tenant’s Proportionate Share
B. Renewal Options
C. Commencement Date Certificate
D. Rules and Regulations
E. Casualty and Restoration Provisions

[// GUIDANCE:
1. Verify all monetary amounts, dates, and business terms with client.
2. Confirm compliance with any municipal zoning or use restrictions.
3. Consider recording a Short-Form Lease per La. Civil Code art. 3338 to protect leasehold (> 9 years).
4. Remove optional clauses if not selected (arbitration, jury waiver).
5. For multitenant properties, adjust Operating Expense calculations accordingly.
6. Confer with local counsel regarding any parish-specific ordinances.]