COMMERCIAL LEASE AGREEMENT

by | Apr 11, 2023 | Agreements

COMMERCIAL LEASE AGREEMENT

This Lease Agreement (hereinafter “Lease”) is entered into and made effective as of the date set forth at the end of this document by and between the Lessor, __________________ (hereinafter referred to as “Landlord”) and the Lessee, ____________________- (hereinafter referred to as “Tenant”). The Parties agree to the following:

  1. PREMISES. Landlord, in consideration of the lease payments described by this Lease, leases to Tenant the property (hereinafter referred to as the “Premises”) which is described as follows: ________________________. The Premises is located at the following address: _________________
  2. SPACE RENTED. The space described equals __________ square feet.
  3. TERM. The lease will commence on _______________________ and remain effective for a period of 12 months.
  4. LEASE PAYMENTS. The Tenant will monthly payments of $ __________ which are paid before the _______of the every month. Any late payments will result in a late fee payment of $_____________. No holidays, weekends, or special events shall excuse Tenant’s obligation to pay timely rent as necessitated by this Lease Agreement.
  5. SECURITY DEPOSIT. At the time of the signing of this Lease, Tenant shall pay to Landlord, in trust, a security deposit of $________________ to be held for the reasonable cleaning or repair of damages to the Premises upon the expiration or termination of this Lease or in case of default by Tenant, as provided by law.

Tenant hereby agrees to be liable to Landlord at the expiration or termination of this Lease for all damages to the Property, except ordinary wear and tear. Landlord may hold the security deposit in a non-interest-bearing account. In such case, no interest is due to Tenant and Tenant may not use the security deposit to cover rent.

Deduction from the security deposit may be made for the following reasons (this list constitutes examples only and is not intended to be exhaustive):unpaid rent or utilities, late fees, cleaning, key replacement, and/or removing abandoned property.

  • POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to Landlord on the last day of the term of this Lease, unless both parties agree in writing to otherwise. At the end of the Lease Term, Tenant shall remove all goods and effects and peaceably return the Premises in as good a condition as when first delivered to Tenant, excepted ordinary wear and tear that occurred during Tenant’s possession of the property.
  • PARKING. Tenant shall be entitled to use _________ parking spaces for the parking to the Tenant’s patron’s motor vehicles.
  • STORAGE. Tenant shall be permitted to store items of personal property at the Premises during the term of this Lease. Landlord shall not be held liable for any loss of or damage to these stored items.
  • LIABILITY INSURANCE. Tenant shall maintain liability insurance on the Premises in an amount not less than $ ____________. Tenant shall deliver evidence to Landlord as proof that sufficient insurance is in force and issued by companies reasonably satisfactory to Landlord.
  • PROPERTY INSURANCE. Landlord and Tenant shall maintain appropriate insurance for their respective interests in the Premises and property located on the Premises. Tenant shall also maintain any other insurance which Landlord reasonably requires for the protection of Landlord’s interest in the Premises.
  • MAINTENANCE. Tenant shall be responsible for maintain the Premises in good repair at all times during the term of this Lease.
  • UTILITIES. Tenant shall be responsible for paying for all utilities including but not limited to water and electricity bills.
  • TAXES. Taxes related to the Premises or its use shall be allocated in the following way:

Real Estate Taxes- Landlord shall pay all real estate taxes and assessments for the Premises.

Business Taxes- Tenant shall pay all personal taxes and any other charges which may be levied against the Premises and which are attributable to Tenant’s use of the Premises, along with all and/or use taxes (if any) that may be due in connection with lease payments.

  1. TERMINATION. Notwithstanding any other provisions in this Lease, the Landlord may terminate this lease upon 60 days written notice to tenant. The Tenant does have the option to terminate the Lease prior to the natural end of the Lease Term. The Tenant shall substantiate the termination with a ____________day notice to the Landlord stating intent to terminate the agreement.
  2. DESTRUCTION OR CONDEMNATION OF PREMISES. If the Premises are partially destroyed by fire or other casualty to the extent that resulting damage prevents the Tenant’s continued use of the Premises in a normal manner as intended, and if the damage is reasonably repairable within 60 days after the occurrence of the incident which cause the damage, and if the cost of repair is less than 50% of the value of the property itself, Landlord shall repair the Premises and a reasonable and just proportion of the lease payments shall abate during the period of the repair the Premises and a reasonable and just proportion of the lease payments shall abate during the period of the repair according to the extent to which the Premises have remained unusable. However, if the damage is not reparable within 60 days or if the cost of repairs is greater than 50% of the value of the property, or if Landlord is prevented from repairing the damage by forces beyond Landlord’s control given their reasonable level of effort, or if Landlord is prevented from repairing the damage by forces beyond Landlord’s control given their reasonable level of effort, or if the property is condemned, this Lease shall terminate upon 20 days’ notice of such event or condition by either party and any unearned rent paid in advance by the Tenant shall be apportioned and refunded to it. Tenant shall give Landlord timely notice of any damage to the Premises.
  3. QUIET ENJOYMENT. During the term of the Lease agreement, the Tenant has the right of quiet enjoyment of the premises.
  4. SUBLETTING AND ASSIGNMENTS. Tenant may not assign or sublease any interest in the Premises, nor effect a change in the majority ownership of the Tenant( from the ownership existing at the inception of this lease), nor assign, mortgage, or pledge this Lease, without the prior express written consent of the Landlord, which shall not be unreasonably withheld.
  5. LANDLORD ACCESS TO PREMISES. Subject to the Tenant’s consent (which may not be unreasonably denied), Landlord shall have the right to enter the Premises 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 Premises without Tenant’s prior consent.
  6. REMODELLING AND STRUCTURAL ALTERATION. Tenant shall have the obligation to conduct any construction or remodeling (at Tenant’s expense) that may be required to use the Premises as specified above. Tenant may also construct such fixtures on the Premises (at Tenant’s expense) that appropriately facilitate its use for such purposes. Such construction shall be undertaken and such fixtures may be erected only with the prior written consent of the Landlord which shall not be denied unreasonably.
  7. INDEMNITY REGARDING USE OF PREMISES. To the extent allowed by law, Tenant agrees to indemnity, hold harmless, and defend Landlord from and against any and all losses, claims, liabilities, and expenses, including reasonable attorney’s fees, if any, for which Landlord may suffer or incur in connection with Tenant’s possession, use or misuse of the Premises, except Landlord’s own act or negligence.
  8.  DANGEROUS AND HAZARDOUS MATERIALS. Tenant shall not keep or have on the Premises any article or thing of a dangerous, flammable or explosive nature that might substantially and unreasonably increase the danger of fire or explosion on the Premises, or that might be considered hazardous by a responsible insurance company, unless the prior written consent of Landlord is obtained and proof of adequate insurance protection is provided by Tenant or Landlord.
  9. NOTICES. Notices under this lease shall not be deemed valid unless given or served in writing and forwarded by mail, prepaid postage, addressed as the following:

LANDLORD: ______________

TENANT: ______________

Such addresses may be changed by either party at any time by providing written notice to the other party as set forth above. Notices mailed in accordance with the above provisions shall be deemed received on the third day of posting.

  • COMPLIANCE WITH REGULATIONS. Tenant shall promptly and dutifully comply with all laws, ordinances, requirements, and regulations of the federal, state, county, municipal, and other authorities and the fire insurance underwriters. However, Tenant shall not by this provision be required to make alterations to the exterior or structure of the building.
  • GOVERNING LAW. This Lease shall be construed in accordance with the laws of the State of California.
  • ENTIRE AGREEMENT. This Lease Agreement contains the entirety of the agreement between the parties and there are no other promises, conditions, understandings, or other agreements, written or oral, relating to the subject matter of this Lease. This Lease may be modified or amended in writing if the writing is signed by the party obligated under the Amendment.
  • BINDING. The Provisions of this Lease shall be binding upon and inure to the benefit of both parties and their respective legal representatives, successors and assigns.

IN WITNESS WHEREOF, the parties affix the signature

TENANT

Signature: ___________________

Name: _______________________

Date: ________________________

LANDLORD

Signature: ___________________

Name: _______________________

Date: ________________________

WITNESS

Signature: ___________________

Name: _______________________

Date: ________________________

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