Fillable Printable Sample Commercial Lease Agreement
Fillable Printable Sample Commercial Lease Agreement
Sample Commercial Lease Agreement
COMMERCIAL LEASE AGREEMENT
This lease is entered into on _______________, 20____ by and between
_______________________________, referred to in this lease as “Landlord” and
_______________________________, referred to in this lease as “Tenant.
ARTICLE 1
LEASE OF PREMISES AND TERM OF LEASE
Agreement to Lease Premises
Section 1.01. For and in consideration of the rents to be paid and covenants to be
performed by Tenant under this lease, Landlord hereby leases to Tenant, and Tenant
hereby leases from Landlord those certain premises (hereinafter “Premises”) located in
the City of _______________, County of _______________, State of California,
commonly known as ________________________________________________,
containing approximately ___________ square feet.
Net Rentable Area: The rentable area computed by measuring to the window glass of
outer building walls, to the Premises side of public corridors and/or other permanent
partitions and to the center of partitions which separate the adjoining rentable areas with
no deduction for columns and projections necessary to the building structure. On multi-
tenant floors, common corridors and toilets, air conditioning rooms, fan rooms, janitorial
closets, electrical and telephone closets and any other areas within and exclusively
serving that floor are considered common area and for purposes of this section shall be
allocated prorate to the Tenants on the floor.
Term of Lease
Section 1.02. The term of this lease shall be for a period of ________ years, beginning
on ________________, 20____ and ending on ________________, 20____, unless
terminated earlier as provided in this lease.
ARTICLE 2
RENT
Minimum Rent
Section 2.01. Tenant agrees to pay to Landlord, minimum monthly rent, monthly in
advance, (“Minimum Rent”) for each month during the term of this lease in the following
amounts:
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a. $_________ per month for the period commencing _______ and ending _______ and
b. $_________ per month for the period commencing _______ and ending _______ and
c. $_________ per month for the period commencing _______ and ending _______.
d. or see attached schedule (if applicable).
Security Deposit
Section 2.02.Concurrently with Tenant’s execution of this lease, Tenant shall deposit
with Landlord the sum of $_______________. Said sum shall be held by Landlord as a
Security Deposit for th e faithful performance by Tenant of all of the terms, covenants,
and conditions of this lease to be kept and performed by Tenant during the term hereof.
If Tenant defaults with respect to any provision of this lease, including but not limited to
the provisions relating to the payment of rent and any of the monetary sums due herewith,
Tenant may (but shall not be required to) use, apply or retain all or part of this Security
Deposit for the payment of any other amount which Landlord may spend by reason of
Tenant’s default. If any portion of said Deposit is so used or applied, Tenant shall, within
ten (10) days after written demand therefore, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to its original amount; Tenant’s failure to do so
shall be material breach of this lease. Landlord shall not be required to keep this Security
Deposit separate form its general funds, and Tenant shall not be entitled to interest on
such deposit. If Tenant shall fully and faithfully perform every provision of this lease to
be performed by it, the Security Deposit or any balance thereof shall be returned to
Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) at the
expiration of the lease term and after Tenant has vacated the premises. In the event of
termination of Landlord’s interes t in this lease, Landlord shall transfer said Deposit to
Landlord’s successor in interest whereupon Tenant agrees to release Landlord from
liability for the return of such Deposit or the accounting therefore.
Late Charges
Section 2.03. Tenant hereby acknowledges that late payment by Tenant to Landlord of
Minimum Rent will cause Landlord to incur costs not completed by this lease, the exact
amount of which will be extremely difficult to ascertain. Such costs include but are not
limited to, processing and accounting charges, personnel costs, and late charges which
may be imposed on Landlord by the terms of any mortgage or trust deed covering the
Premises. Accordingly, if any installment of Minimum Rent or any other sum due from
Tenant shall not be received by Landlord when due, Tenant shall pay to Landlord a late
charge equal to five percent (5%) of such overdue amount. The parties hereby agree that
such late charge repres ents a fair and reasonable estimate of the costs Landlord will incur
by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall
in no event constitute a waiver of Tenant’s default with respect to such overdue amount,
nor prevent Landlord from exercising any of the other rights and remedies granted
hereunder. In the event that a late charge is payable hereunder, whether or not collected,
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for two (2) installments of Minimum Rent in any twelve (12) month period, then the
Minimum Rent and/or all other charges hereunder shall, at Landlord’s election by written
notice to Tenant, become due and payable quarterly in advance, rather than monthly,
notwithstanding any other provision of this lease to the contrary.
No Partnership of Joint Venture
Section 2.04. Nothing in this lease shall be construed to render Landlord in any way or
for any purpose a partner, joint venturer, or associate in any relationship with Tenant
other than that of Landlord and Tenant, nor shall this lease be construed to authorize
either to act as agent for the other.
ARTICLE 3
USE OF PREMISES
Permitted Use
Section 3.01. Tenant agrees that the Premises shall be used, occupied, and conducted
exclusively for _____________________________________________ and for no other
purpose without Landlord’s prior written consent which may be withheld in Landlord’s
sole and absolute discretion. Under no conditions shall any residential use be made of the
Premises.
Compliance with Laws
Section 3.02. Tenant will use the Premises in a thoroughly orderly and respectable
manner, without let, hindrance, annoyance, disturbance, detriment, injury or offense to
Landlord; will not maintain, commit, nor suffer to be maintained or committed any
nuisance or waste in or about the Prem ises; will not do or permit anything to be done in
or about the Premises, nor bring or keep anything therein, which will in any way affect
fire, or other insurance of the Premises or any of its contents, or which shall in a any way
conflict with any law, ordinance, rule or regulation affecting the occupancy of the
Premises which are or may hereafter be enacted or promulgated by any public authority.
Signage
Section 3.03.
a. Tenant shall not place or permit to be placed in or upon the Premises, where visible
from outside the Premises, or outside the Premises or any part of the Building any signs,
notices, drapes, shutters, blinds or displays of any type without the prior written consent
of Landlord.
b. Landlord reserves the right in Landlord’s sole discretion to place and locate on the
roof, exterior of the Premises not leased to Tenant such signs, notices displays and similar
items as Landlord deems appropriate in the proper operation of the Landlord.
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Compliance with Government Regulations
Section 3.04. Tenant shall, at its sole cost and expense, comply with all of the
requirements of all municipal, state and federal authorities now in force, or which may
hereafter be in force, pertaining to the use of the Prem ises. The judgment of any court of
competent jurisdiction, or the admission of Tenant in any action or proceeding against
Tenant, whether Landlord be a party thereto or not, that Tenant has violated any such
ordinance or statute pertaining to the Premises, shall be conclusive of the fact as between
Landlord and Tenant.
ARTICLE 4
TAXES
Taxes
Section 4.01. Landlord shall pay current real property taxes, other than taxes covered by
Section 4.02, unless otherwise agreed (see attached schedule, if applicable).
New Taxes
Section 4.02. In addition to rent and other charges to be paid by Tenant hereunder,
Tenant shall reimburse to Landlord, within thirty (30) days of receipt of a demand
therefore, any and all new taxes payable by Landlord (other than net income taxes)
whether or not now customary or within the contemplation of the parties hereto;
a. upon, allocable to, or measured by the area of the Premises or on the rent payable
hereunder, including without limitation any gross income tax or excise tax levied by the
State, any political subdivision thereo f, city or federal government with respect to the
receipt of such rent; or
b. upon or with respect to the possession, leasing, operation, management, maintenance,
alteration, repair; use of occupancy by Tenant of the Premises or any portion thereof; or
c. upon or measured by the value of Tenant’s personal property, equipment or fixtures
located in the Premises; or
d. upon this transaction or any document to which Tenant is a party creating or
transferring an interest or an estate in th e Premises. Tenant agrees to pay, before
delinquency, any and all taxes levied or assessed and which become payable during the
term hereof upon Tenant’s equipment, furniture, fixtures and other personal property
located in the Premises. For the purpose of determining said amount, figures supplied by
the County Assessor as to the amount so assessed shall be conclusive. Tenant shall
comply with the provisions of any law, ordinance or rule of the taxing authorities which
require Tenant to file a report of Tenant’s prop erty located in the Premises.
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ARTICLE 5
SERVICE AND UTIL ITIES
Landlord’s Obligations
Section 5.01. Landlord agrees to furnish to the Premises, water, gas and electricity
suitable for the intended use of the Premises, heat and air conditioning required in
Landlord’s judgment for the comfortable use and occupancy of the Premises, scavenger,
and outside window washing service, and security customary in similar buildings in the
competing geographical areas. Landlord shall also maintain and keep lighted the
common stairs, common entries and common toilet rooms in the building. (This lease
shall not include janitorial or utilities).
Tenant’s Obligations
Section 5.02. Tenant shall pay for, prior to delinquency, all telephone and all other
materials and services, not expressly required to be paid by Landlord, which may be
furnished to or used in, on or about the Premises during the term of this lease. This lease
shall not inc lude utilities/janitorial services. Landlord shall not be responsible to pay for
the cost of Tenant’s janitorial and utility costs.
Tenant’s Additional Requirements
Section 5.03.
a. Tenant will not, without the written consent of Landlord, use any apparatus or device
in the Premises including but without limitation thereto, electronic data processing
machines, punch card machines and machines using current in excess of 110 volts, which
will in any way increase the amount of electricity or water usually furnished or supplied
for use of the Premises as _____________ space; nor connect with electric current,
except through existing e lectrical outlets in the Premises, or water pipes, any apparatus or
device, for the purposes of using electric current or water.
b. If Tenant shall require water or electric current in excess of that usually furnished or
supplied for use of the Premises as _____________ space, Tenant shall first procure the
consent of Landlord for the use thereof, which consent Landlord may refuse and
Landlord may cause a water meter or electric current meter to be installed in the
Premises, so as to measure the am ount of water and electric current consumed for any
such other use. The cost of such meters and of installation, maintenance and repair
thereof shall be paid for by Tenant and Tenant agrees to pay Landlord promptly upon
demand by Landlord for all such water and electric current consumed as shown by said
meters, at the rates charged for such services by the city in which the building is located
or the local public utility, as the c ase may be, furnishing the sam e, plus any additional
expense incurred in keeping account of the water and electric current so consumed.
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c. Wherever heat generating machines or equipment are used in the Premises which
affect the temperature otherwise maintained by he air conditioning system, Landlord
reserves th e right to install supplementary air conditioning units in the Premises and the
cost thereof, including the cost of installation, operation, and maintenance thereof, shall
be paid by Tenant to Landlord upon demand by Landlord.
Non-liability
Section 5.04. Landlord shall not be liable for, and Tenant shall not be entitled to, any
abatement or reduction of rent by reason of Landlord’s failure to furnish any of the
foregoing when such failure is caused by accidents, breakage, repairs, strikes, lockouts or
other labor disturbances or labor disputes of any character, or by any other cause similar
or dissimilar, beyond the reasonable control of Landlord. Landlord shall not be liable
under any circumstances for loss of or injury to property, however occurring, through or
in connection with or incidental to failure to furnish any of the foregoing.
ARTICLE 6
DAMAGE OR DESTRUCTION
Partial Damage – Insured
Section 6.01. In the event the Premises or the Building are damaged by any casualty
which is covered under fire and extended coverage insurance carried by Landlord, then
Landlord shall restore such damage provided insurance proceeds are available to pay
eighty percent (80%) ore more of the cost of restoration and provided such restoration
can be completed within sixty (60) days after the commencement of the work in the
opinion of a registered architect or engineer appointed by Landlord. In such event this
lease shall c ontinue in full force and effect, except that Tenant shall be entitled to
proportionate reduction of rent while such restoration takes place, such proportionate
reduction to be based upon the extent to which the restoration eff o rts interfere with
Tenant’s business in the Premises.
Partial Damage – Uninsured
Section 6.02. In the event the Premises or the Building are damaged by a risk not
covered by Landlord’s insurance or the proceeds of available insurance are less than
eighty percent (80%) of the cost of restoration, or if the restoration cannot be completed
within sixty (60) days after the commencem ent of work in the opinion of the registered
architect or engineer appointed by Landlord, then Landlord shall have the option either to
(1) repair or restore such damage, this lease continuing in full force and effect, but the
rent to be proportionately abated are hereinabove provided or (2) give notice to Tenant at
any time within thirty (30) days after such dam age terminating this lease as of a date to
be specified in such notice, which date shall be not less than thirty (30) nor more than
sixty (60) days after giving such notice. In the event of the giving of such notice, this
lease shall expire and all interest of Tenant in the Premises shall terminate on such date
so specified in such notice and the rent, reduced by any proportionate reduction based
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upon the extent, if any, to which said damage interfered with the use and occupancy of
Tenant, shall be paid to the date of such termination, Landlord agrees to refund to the
Tenant any rent theretofore paid in advance for any period of time subsequent to such
date.
Total Destruction
Section 6.03. In the event the Premises are totally destroyed or the Premises cannot be
restored as required herein under the applicable laws and regulations, notwithstanding the
availability of insurance proceeds, this lease shall be terminated effective the date of the
damage.
Damage Near End of the Term
Section 6.04. Notwithstanding anything to the contrary contained in Section 6, Landlord
shall not have any obligation whatsoever to repair, reconstruct or res tore the Premises
when the damage resulting from any casualty covered under this Sec tion 6 occurs during
the last twelve (12) months of the term of this lease or any extension thereof.
Landlord’s Obligations
Section 6.05. The Landlord shall not be required to repair any injury or damage by fire
or other cause, or to make any restoration or rep lacement of any paneling, decorations,
partitions, railings, floor covering, office fixtures, or any other improvements or property
installed in the Premises by Tenant or at the direct or indirect expense of Tenant. Tenant
shall be required to restore or replace same in the event of damage. Except for abatement
of rent, if any, Tenant shall have no claim against Landlord for any damage suffered by
reason of any such damage, destruction, repair or restoration.
ARTICLE 7
MAINTENANCE AND REPAIRS; ALTERATIONS AND ADDITIONS
Maintenance and Repairs
Section 7.01.
a. Landlord’s Obligations. Landlord shall maintain in good order, condition and repair
the Building and all other portions of the Premises not the obligation of Tenant or any
other tenant in the Building.
b. Tenant’s Obligations. (i) Tenant at Tenant’s sole cost and expense, except for
services furnished by Landlord pursuant to Section 5 hereof, shall maintain the Premises
in good order, condition and repair including the interior surfaces of the ceilings, walls
and floors, all doors, interior windows, exterior windows at or below street level, all
plumbing pipes, electrical wiring, switches, fixtures and special items in excess of
building standard furnishings, and equipment installed by or at the expense of Tenant.
(ii) Upon the expiration or earlier termination of this lease, Tenant shall surrender the
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Premises in the same condition as received, ordinary wear and tear and damage by fire,
earthquake, act of God or the elements alone excepted, and shall promptly remove or
cause to be removed at Tenant’s expenses from the Premises and the Building any signs,
notices and displays placed by Tenant. (iii) Tenant agrees to repair any damage to the
Premises or the Building caused by or in connection with the removal of any articles of
personal property business or trade fixtures, machinery, equipment, cabinetwork,
furniture, movable partition or permanent improvements or additions, including without
limitation thereto, repairing the floor and patching and painting the walls where required
by Landlord to Landlord’s reasonable satisfaction all at Tenant’s sole cost and expense.
Tenant shall indemnify the Landlord against any loss or liability resulting from delay by
Tenant in so surrendering the Premises, including without limitation any claims made by
any succeeding tenant found on such delay. (iv) In the event Tenant fails to maintain the
Premises in good order, condition and repair, Landlord shall give Tenant notice to do
such acts as are reasonably required to so maintain the Premises. In the event Tenant
fails to promptly commence such work and diligently prosecute it to completions, then
Landlord shall have the right to do such acts and expend such funds a the expense of
Tenant as are reasonably required to perform such work. Any amount so expended by
Landlord shall be paid by Tenant promptly after demand with interest at ten percent
(10%) per annum from the date of such work. Landlord shall have no liability to Tenant
for any damage, inconvenience or interference with the use of the Premises by Tenant as
a result of performing any such work.
c. Compliance with Law. Landlord and Tenant shall each do all acts required to comply
with all applicable laws, ordinances, regulations and rules of any public authority relating
to their respective maintenance obligations as set f o rth herein.
Alterations and Additions
Section 7.02.
a. Tenant shall make no alterations, additions or improvements to the Premises or any
part thereof without obtaining the prior written consent of Landlord.
b. Landlord may impose as a condition to the aforesaid consent such requirements as
Landlord may deem necessary in its sole discretion, including without limitation thereto,
the manner in which the work is done, a right of approval of the contractor by whom the
work is to be performed, the times during which is to be accomplished, and the
requirement that upon written request of Landlord prior to the expiration or earlier
termination of the lease, Tenant will remove any and all permanent improvements or
additions to the Premises installed at Tenant’s expense and all movable partitions,
counters, personal property, equipment, fixtures and furniture.
c. All such alterations, additions or improvements shall at the expiration or earlier
termination of the lease become the property of Landlord and remain upon and
surrendered with the Premises, unless specified pursuant to Section 7.02(b) above.
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d. All articles of personal property and all business and trade fixtures, machinery and
equipment, cabinetwork, furniture and movable partitions o wned by Tenant or installed
by Tenant at its expense in the Premises shall be and remain the property of Tenant and
may be removed by Tenant at any time during the lease term when Tenant is not in
default hereunder.
ARTICLE 8
INSURANCE
Indemnity
Section 8.01. Tenant shall indemnify and hold Landlord and Landlord’s property,
including the Premises and improvements now or hereafter on the Premises, free and
harmless from any and all liability, claims, loss, damages, or expenses resulting from
Tenant’s occupation and use of the Premises, specifically including, without limitation,
any liability, claim, loss, damage, or expense arising by reason of the following:
a. the death or injury of any person, including Tenant or any person who is an employee
or agent of Tenant or by reason of the damage to or destruction of any property, including
property owned by Tenant or by any person who is an employee or agent of Tenant, from
any cause whatsoever while that person or property is in or on the Premises or in any way
connected with the Premises or with any of the improvements or personal property on the
Premises;
b. the death or injury of any person, including Tenant or any person who is an employee
or agent of Tenant, or by reason of the damage to or destruction of any property,
including property owned by Tenant or any person who is an employee or Tenant, caused
or allegedly caused by either (1) the condition of the Premises or improvements on the
Premises, or (2) some act or omission on the Premises of Tenant or any person in, on, or
about the Premises with the perm ission and consent of Tenant;
c. any work performed on the Premises or materials furnished to the Premises at the
instance or request of Tenant or any person or entity acting for or on beha lf of Tenant; or
d. Tenant’s failure to perform any provision of this lease or to comply with any
requirement of law or any requirement imposed on Tenant or the Premises by any duly
authorized governmental agency or political subdivision.
Insurance
Section 8.02. Tenant shall, at Tenant’s own expense, obtain and keep in force during the
term, public liability and property damage insurance coverage with special extended
coverage endorsement (“all risk” property insurance) including business interruption
insurance and rental income insurance for a period of up to twelve (12) months, naming
Landlord and Tenant as the insured and insuring the Premises for one hundred percent
(100%) of the replacement value of the improvements thereon. Additionally, such “all
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risk” property insurance shall include a demolition endorsement, increased costs of
construction endorsement, and such other endorsements as ma y be required by Landlord.
Tenant shall further maintain in full f orce and effect on all furniture, fixtures and
equipment in the Premises, policies of fire insurance with extended coverage
endorsements in the amount of at least ninety percent (90%) of their replacement values.
Tenant shall at Tenant’s expense obtain and keep in force during the term hereof a policy
of general liability insurance covering liability for bodily injury and death and property
damage insurance naming Landlord as an additional insured against liability in an amount
of not less than $1,000,000.00 per occurrence, inclusive of umbrella coverage. The
policy shall include cross liability endorsements.
All insurance required to be provided shall be carried with insurance companies having
the rating of A or better in Best’s Insurance Guide. Tenant may satisfy any of its
insurance obligations, under a blanket policy so long as such blanket policy provides the
coverage required hereunder and names Landlord as an additional insured as required
pursuant hereto. If an independent insurance expert or Landlord determines that the
$1,000,000.00 liability limit no longer provides adequate protection according to
prevailing practice, Tenant will be required to increase the $1,000,000.00 liability
insurance to an adequate level.
Tenant shall supply to Landlord annually a copy of the above described policies upon
receipt of a written request therefore and shall provide Landlord with evidence of renewal
or replacement thereof at least twenty (20) days prior to expiration of such policies. In no
event shall Tenant open for business in the Premises unless and until copies of such
policies have been provided to Landlord. In the event Tenant fails to provide such
coverage, Landlord may provide such insurance and Tenant shall bear the cost thereof,
together with interest from the date of the expenditure until paid. Such sums shall be
paid within ten (10) days of receipt of a bill th erefore. All such policies shall provide that
Landlord shall receive written notice not less than ten (10) days prior to the expiration or
intended cancellation of the policy.
Additionally, Tenant shall carry Workers’ Compensation Insurance as required by law.
During the term of the lease and any extension thereof, the proceeds from the policy of
insurance covering the Premises shall be used for the proper repair or replacement of any
of the property insured, except that if the property is destroyed during the last three (3)
years of the term of the lease, the improvements need not be repaired or replaced and the
lease shall terminate. In the event this lease is terminated as a result of damage or
destruction, all insurance proceeds p ertaining to the Premises, including the
improvements shall be paid to Landlord until Landlord has received one hundred (100%)
percent of the replacement cost thereof and Tenant shall demolish and remove the
remainder of improvements upon written request by Landlord to Tenant; thereafter all
insurance proceeds relating (1) to furniture, fixtures and equipment, and (2) to costs of
demolition of and removal of improvements (if Landlord requests Tenant to do so), shall
be paid to Tenant.
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Waiver of Subrogation
Section 8.03. Landlord and Tenant hereby waive any rights each may have against the
other in connection with any of the damage or injury occasioned to Landlord or Tenant,
as the case may be, their respective property, the Premises, or its contents, or to the
improvements, arising from any risk actually covered by insurance in effect at the time to
the extent of the available proceeds; the parties each, on behalf of their respective
insurance companies insuring property of either Landlord or Tenant against any such
loss, waive any right of subrogation that it may have against Landlord or Tenant, as the
case may be to the extent of available proceeds. Tenant, on behalf of its insurance
companies insuring the Premises, its contents, Tenant’s other property, or other
improvements, waives any right of subrogation that such insurer or insurers may have
against any of the parties hereto to the extent of available proceeds. The foregoing
waivers of subrogation shall be operative only so long as available in the State of
California and provided they do not invalidate any such policy.
ARTICLE 9
CONDEMNATION
Definitions
Section 9.01.
a. For the purposes of this lease, “eminent domain” means the right of the people or
government to take private property for public use. As used in this article, the words
“condemned” and “condemnation” are coextensive with that right, and a voluntary
conveyance by Landlord to the condemnor under threat of a taking under the power of
eminent domain in lieu or after com mencement of formal proceedings shall be deemed a
taking within the meaning of this article.
b. As used in this article, the terms “total condemnation” and “total taking” mean the
taking of the entire leased premises under the power of eminent domain.
c. As used in this article, the terms “partial condemnation” and “partial taking” mean any
condemnation of the leased premises other than a total taking as defined in subsection (b)
of this section.
Condemnation
Section 9.02. If all or any part of the Premises shall be taken or appropriated for public
or quasi-public use by right of eminent domain with or without litiga tion or transferred by
agreement in connection with such public or quasi-public use, either party hereto shall
have the right at its option exercisable within th irty (30) days of receipt of notice of such
taking to terminate this lease as of the date possession is taken by the condemning
authority, provided, however, that before Tenant m ay terminate th is lease by reason of
taking or appropriation as provided hereinabove, such taking or appropriation shall be of
such an extent and nature as to substantially handicap, impede or impair Tenant’s use of
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