Free Commercial Lease Agreement Template

COMMERCIAL LEASE AGREEMENT This Commercial Lease Agreement (the “Lease”) is entered into as of [Effective Date] (the “Effective Date”), BETWEEN: [Landlord Name], with a mailing address at [Landlord Address] (the “Landlord”); AND [Tenant Legal Name], a [Tenant Entity Type and Jurisdiction], with a principal place of business at [Tenant Address] (the “Tenant”). The Landlord and the Tenant may be referred to individually as a “Party” and collectively as the “Parties.” 1. PREMISES The Landlord leases to the Tenant the [Premises Type] space known as Suite or Unit [Suite or Unit Number] at [Premises Address], containing approximately [Rentable Area] of rentable area (the “Premises”), together with the non-exclusive right to use the common areas of the building or project. The Tenant accepts the Premises in their current condition, except for any Landlord Work described in Section 7. 2. TERM The term of this Lease begins on [Commencement Date] (the “Commencement Date”) and ends on [Expiration Date] (the “Term”), unless extended under Section 13 or terminated earlier under this Lease. If the Tenant remains in possession after the Term without a written extension, the tenancy will be month-to-month at 150% of the last monthly Base Rent, unless the law requires otherwise. 3. BASE RENT AND ESCALATION (a) Base Rent. The Tenant will pay monthly base rent of [Monthly Base Rent] (the “Base Rent”), in advance, on or before day [Rent Due Day] of each month, by [Payment Method]. (b) Escalation. On each anniversary of the Commencement Date, Base Rent will increase by [Annual Escalation]. (c) Late Payment. Any amount not received within five (5) days after its due date will incur a late fee of [Late Fee Amount], to the extent permitted by law. (d) Proration. Rent for any partial month will be prorated on a daily basis. 4. OPERATING COSTS This Lease is a [Lease Structure] lease. Under a gross lease, Base Rent includes taxes, insurance and common area maintenance for the building. Under a modified gross or net lease, the Tenant will also pay [Tenant’s Share of Operating Costs] of the real estate taxes, building insurance and common area maintenance costs (the “Operating Costs”), in monthly estimated installments reconciled annually. The Landlord will provide a reasonable annual statement of actual Operating Costs, and the Tenant may review supporting records on request. 5. SECURITY DEPOSIT On signing, the Tenant will deliver a security deposit of [Security Deposit Amount] (the “Deposit”). The Landlord may apply the Deposit to cure any default, and the Tenant will restore the amount applied within ten (10) days after written notice. Any unused portion will be returned after the end of the Term and the Tenant’s surrender of the Premises. 6. PERMITTED USE The Tenant will use the Premises only for [Permitted Use] and for no other purpose without the Landlord’s prior written consent. The Tenant will obtain all business licenses and permits required for its use and will comply with applicable laws, building rules, zoning and accessibility requirements related to its specific use of the Premises. 7. IMPROVEMENTS AND BUILD-OUT (a) Landlord Work. Before the Commencement Date, the Landlord will complete the following work at its cost: [Landlord Work]. (b) Tenant Improvements. The Landlord will provide a tenant improvement allowance of [Tenant Improvement Allowance] for improvements approved in writing by the Landlord and performed by licensed and insured contractors. (c) Alterations. The Tenant will not make structural alterations, or other alterations beyond cosmetic changes, without the Landlord’s prior written consent, which will not be unreasonably withheld. At the end of the Term, the Tenant will remove its trade fixtures and repair any damage caused by removal. 8. MAINTENANCE AND REPAIRS The Landlord will maintain the roof, foundation, structural elements and building systems serving more than one tenant, subject to recovery as Operating Costs where this Lease allows. The Tenant will maintain the interior of the Premises, its fixtures and any systems exclusively serving the Premises in good condition, except for normal wear and tear and casualty damage. 9. INSURANCE AND INDEMNITY The Tenant will maintain commercial general liability insurance of at least [Liability Insurance Amount] per occurrence, naming the Landlord as additional insured, and property insurance covering its personal property and improvements. The Landlord will insure the building. Each Party will indemnify the other against third-party claims arising from its own negligence or willful misconduct, and the Parties waive subrogation to the extent their insurance permits. 10. ASSIGNMENT AND SUBLETTING The Tenant may not assign this Lease or sublet all or part of the Premises without the Landlord’s prior written consent, which will not be unreasonably withheld, conditioned or delayed. The Tenant remains liable under this Lease after any assignment or sublease unless the Landlord releases it in writing. 11. LANDLORD ACCESS The Landlord may enter the Premises on reasonable prior notice during business hours to inspect, make repairs or show the Premises, and at any time in an emergency, while minimizing interference with the Tenant’s business. 12. DEFAULT AND REMEDIES An event of default occurs if the Tenant fails to pay any amount within [Default Cure Days] days after written notice, or fails to cure any other material breach within thirty (30) days after written notice. Upon default, the Landlord may pursue the remedies available under the laws of [Governing Law / Jurisdiction], including termination, recovery of possession through lawful process and damages, subject to any duty to mitigate. 13. RENEWAL OPTION If the Tenant is not in default, the Tenant may renew this Lease for one additional term of [Renewal Term] by giving written notice at least [Renewal Notice Period] before the Expiration Date. Base Rent for the renewal term will be determined by [Renewal Rent Method]. All other terms will remain the same. 14. GOVERNING LAW AND GENERAL PROVISIONS (a) Governing Law. This Lease is governed by the laws of [Governing Law / Jurisdiction]. Disputes will be resolved in the courts of [Governing Law / Jurisdiction], unless the Parties agree in writing to mediation first. (b) Entire Agreement. This Lease and its exhibits are the entire agreement regarding the Premises and supersede all prior negotiations, letters of intent and understandings. (c) Amendments. Amendments must be in writing and signed by both Parties. (d) Severability. If any provision is unenforceable, the remaining provisions remain in effect. (e) Notices. Notices must be in writing and delivered to the addresses above or updated addresses given in writing. (f) Counterparts and Electronic Signatures. This Lease may be executed in counterparts, including by electronic signature, each of which is deemed an original. IN WITNESS WHEREOF, the Parties have executed this Commercial Lease Agreement as of the Effective Date. LANDLORD Name: [Landlord Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________ TENANT Name: [Tenant Legal Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________