Commercial Lease
Agreement
PREPARED FOR
[Tenant Name]
PREPARED BY
[Landlord Name]
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This Commercial Lease Agreement (hereinafter referred to as the “Agreement”) is entered into as of [Agreement Effective Date] (hereinafter referred to as the “Effective Date”),
By and Between
[Landlord Name] (hereinafter referred to as the “Landlord”), having its principal place of business at [Landlord Address], and;
[Tenant Name] (hereinafter referred to as the “Tenant”), having its location at [Tenant Address].
Hereinafter, the Landlord and the Tenant shall be collectively referred to as the “Parties” and individually as the “Party.”
Therefore, the Parties agree to the following terms and conditions:
TERMS AND CONDITIONS.
1. THE PROPERTY.
3. RENT.
The Tenant shall pay the Landlord monthly installments of [Monthly Rent], which equates to [Monthly Rent Per Sq.Ft] per Square Foot. The rent shall increase by [Rent Increase Percentage] on an annual basis. Each installment is due in advance on the first day of each calendar month during the Lease term to the Landlord at the following address:
[Landlord Address]
The payment shall be in USD through [Mode of Payment]. Any change in the address or mode of payment shall be informed to the other Party by written notice before or immediately after such change, at the earliest. No holidays, special events, or weekends shall excuse the Tenant's obligation to pay timely rent as described in this Lease Agreement. If an emergency is a reason for such a delay, the Landlord needs to be notified, and if the due permission is received from the Landlord, such a delay would be condoned. Otherwise, such a delay shall not be entertained under any circumstances.
4. SECURITY DEPOSIT.
Upon signing this Agreement, the Tenant shall pay the Landlord a refundable security deposit of [Refundable Security Deposit], which shall be returned upon the termination of the Agreement. Security deposit deductions shall be made for the following reasons: unpaid rent or utilities, late fees, cleanup, key replacement, and removal of the abandoned property.
The Tenant hereby agrees to be responsible for all damages to the Property, except ordinary wear and tear, at the expiration or termination of this Lease. In the case of the Landlord's sale or assignment of the Lease, the security deposit of the Tenant shall be transferred to the new owner or assignee, relieving the Landlord of any responsibility for returning the security deposit to the Tenant.
5. MOVE-IN PAYMENTS.
The base rent and additional rent (defined below) for the first month of the Term, together with the Security Deposit, are due and payable upon execution of this Lease. Those amounts are as follows:
7. PROHIBITED USES.
Despite the foregoing, the Tenant shall not use the Leased Property for the purpose of storing, manufacturing, or selling any explosives, flammable, or other inherently hazardous substances, chemicals, objects, or devices.
8. MAINTENANCE AND REPAIRS.
The Tenant shall make all the necessary repairs to the Leased Property at their own expense during the Lease Term. Such maintenance shall include routine repair of floors, walls, ceilings, and other parts of the Property damaged or worn out by normal occupancy, except for major mechanical systems or the roof, as per the obligations provided in this Lease.
9. INSURANCE.
Both the Landlord and the Tenant shall maintain adequate insurance coverage for the Property. Insurance for the Tenant shall not be less than [Tenant Minimum Liability Insurance Coverage (USD)], along with liability insurance. The Landlord shall be designated as an additional insured Party on any of those policies availed by the Tenant. The Tenant shall provide the Landlord with adequate proof of the insurance in force issued to the Landlord by the concerned authorities. The Landlord shall receive a written notice from the insurer [Insurance Policy Cancellation Notice Period (Months)] month(s) in advance before any termination of such policies. The Tenant shall also retain any other insurance that the Landlord legitimately needs in order to protect the Landlord's interest in the Property.
10. ALTERATIONS AND IMPROVEMENTS.
The Tenant shall have the right, at own expense, upon obtaining Landlord's consent, to remodel, redecorate, and make additions, improvements, and replacements of and to all or any part of the leased Property from time to time as Tenant shall deem desirable, provided the same are made in a workmanlike manner and utilizing good quality materials. The Tenant shall have the right to place and install personal property, trade fixtures, equipment, and other temporary installations in and upon the Leased Property, and fasten the same to the Property.
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 Property 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 Tenant shall repair, at Tenant's expense, all damage to the leased Property caused by such removal.
11. TAXES.
11. TAXES.
The Landlord shall pay all general property taxes, installments of special assessments due on the Leased Property during the Lease term, and all personal property taxes. The Tenant is responsible for paying all real property taxes with respect to the personal property of the Tenant at the Leased Property.
12. UTILITIES & SERVICES.
The Tenant shall pay all charges for water, sewer, gas, electricity, telephone, and other facilities and amenities used by the Tenant on the Leased Property for the duration of this Agreement unless the Landlord has expressly decided otherwise in writing. In the event that any utility or service provided to the Leased Property is not metered separately, the Landlord shall pay the amount due and separately invoice the Tenant for the proportional expenses of the Tenant.
All these maintenance charges shall be paid by the Tenant before the Due Date. The Tenant agrees that the Leased Property is built to provide electrical equipment and standard office lighting for standard office use.
13. PARKING.
During the term of this Lease, the Tenant shall have the non-exclusive use in common with the Landlord, other building tenants, their guests, and invitees of the non-reserved common car parking areas, driveways, and footways, subject to the rules and regulations for their use as prescribed by Landlord from time to time. The Landlord reserves the right to designate parking areas for the agents and employees of the Tenant. The Tenant shall provide a list of all license numbers for the cars owned by the Tenant, its agents, and employees to the Landlord.
14. DESTRUCTION OR CONDEMNATION OF PROPERTY.
If the Leased Property or any part of it is so damaged by any fire, casualty, or structural defects that are not the results of any negligence by the Tenant or any of the Tenant's agents, employees, or invited persons that the same cannot be used for the purposes of the Tenant, then the Tenant shall have the right to terminate this Lease by notification within [Termination Notice Period After Property Damage] day(s) of the damage, as of the date of such damage. In the event of any minor damage to any portion of the Leased Property due to such event, even if such damage does not make the Leased Property unusable for Tenant purposes, the Landlord shall immediately repair that damage at the Landlord's expense.
The Landlord shall not be liable for any delays resulting from strikes, governmental restrictions, inability to obtain necessary materials or labor, or other matters beyond the reasonable control of the Landlord. The tenant shall be relieved from paying rent and other charges during any portion of the Lease term in which the Leased Property is inoperable or unfit for occupancy or use, in whole or in part, for the Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be credited to the next ensuing payments, if any, but if no further payments are to be made, any such advance payments shall be refunded to the Tenant.
15. SUBLETTING AND ASSIGNMENTS.
The Tenant cannot assign or sublease any interest in the Property, nor effect a change in the Tenant's majority ownership (from the ownership existing at the beginning of this Lease), nor assign, mortgage, or undertake this Lease without the Landlord's prior express written consent, which is not unreasonably withheld.
16. ACCESS TO PROPERTY.
Subject to Tenant's consent, Landlord shall have the right to enter the Property to make inspections, provide necessary services, or show the unit to prospective buyers, lessors, or workers. However, Landlord does not assume any liability for the care or supervision of the Property. As provided by law, in case of an emergency, the Landlord can enter the Property without Tenant's prior consent.
During the last three months of this Lease, or any extended period of this lease, theLandlord shall be allowed access to the Property to display "To Let" signs and show the Property to prospective future tenants.
17. ARBITRATION.
In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by arbitration. There shall be [Number of Arbitrators] arbitrator(s) who shall be appointed by [Arbitration Appointing Party Name]. The venue of arbitration shall be [Location of Arbitration], and the Seat shall be [State of Seat]. The arbitrator(s)' decision shall be final and binding on both Parties.
18. TERMINATION.
Either Party may terminate this Agreement by providing written notice of at least [Termination Notice Period in Days] day(s) before the intended termination date. Upon expiry or termination of this Agreement, Tenant agrees to withdraw all of its personal property from the Leased Property and return the Leased Property to the Landlord in the same condition as at the time of possession (except for usual wear and tear) along with all keys, access cards, or any similar objects.
When Tenant leaves, vacates, or surrenders the Leased Property, or is removed by judicial procedure, or otherwise, any personal property belonging to the Tenant left in or around the Leased Property shall, at Landlord's discretion, be considered abandoned and could be disposed of by Landlord at Tenant's expense and risk.
19. GOVERNING LAW.
This Agreement shall be governed, construed, and interpreted by, through, and under the Laws of [Governing Law] .
20. SEVERABILITY.
If any part or sub-part of this Agreement is deemed invalid by court order, judgment, or other operation of law, the remaining parts and sub-parts of this Agreement shall remain valid and enforceable to the fullest extent.
21. NO WAIVER.
No waiver of any default of the Landlord or Tenant hereunder shall be implied from any act or omission because of such default. If such default persists or is repeated, 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 specified therein.
22. COMPLIANCE.
The Tenant and Landlord each shall comply with all laws, orders, ordinances, and other public requirements now or hereafter affecting the Leased Property.
23. BINDING.
The provisions of this Lease shall be binding upon and ensure the benefit of the parties and their respective legal representatives, successors, and assignees.
24. ENTIRE AGREEMENT.
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