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COMMERCIAL LEASE AGREEMENT
This Commercial Lease Agreement (Lease) is entered into on this ____ day of ___________,
20__, by and between __________________ (Landlord) and _________________ (Tenant).
Landlord is the owner of land and improvements whose address is:
__________________________________. Landlord makes available for lease a portion of the
Building designated as ___________________ (Leased Premises).
Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased
Premises from Landlord for the term, at the rental and on the provisions set forth herein.
THEREFORE, in consideration of the mutual promises contained herein, and for other good and
valuable consideration, it is agreed:
1. Term
The Initial Term of the Lease shall begin on the _____ day of _____________, 20__, and end
on the _____ day of _____________, 20__. Landlord shall use its best efforts to put Tenant in
possession of the Leased Premises on the beginning of the Initial Term. If Landlord is unable to
timely provide the Leased Premises, rent shall abate for the period of delay. Tenant shall make
no other claim against Landlord for any such delay.
Tenant may renew the Lease for one extended term of ____________. Tenant shall exercise such
renewal option, if at all, by providing written notice to Landlord not less than ninety (90) days
prior to the expiration of the Initial Term. The renewal term shall be at the rental set forth below
and otherwise on the same covenants, conditions, and provisions as contained in this Lease.
2. Rent
Tenant shall pay to Landlord during the Initial Term rent of _________________ Dollars ($) per
year, payable in installments of _______________ Dollars ($) per month. Each installment
payment shall be due in advance on the first day of each calendar month during the lease term to
Landlord at the following address:
The rental payment amount for any partial calendar months included in the lease term shall be
prorated on a daily basis.
Tenant shall also pay to Landlord a Security Deposit in the amount of __________________
Dollars ($).
The rental for any renewal lease term, if created as permitted under this Lease, shall be
___________ Dollars ($) per year payable in installments of _______ Dollars ($) per month.
3. Prohibited Uses
Notwithstanding the foregoing, Tenant shall not use the Leased Premises for the purposes of
storing, manufacturing, or selling any explosives, flammables, or other inherently dangerous
substance, chemical, thing, or device.
4. Sublease and Assignment
Tenant shall have the right without Landlord’s consent, to assign this Lease to a business with
which Tenant may merge or consolidate, to any subsidiary of Tenant, to any corporation under
common control with Tenant, or to a purchaser of substantially all of Tenant’s assets.
Except as set forth above, Tenant shall not sublease all or any part of the Leased Premises or
assign this Lease in whole or in part without Landlord’s consent, such consent not to be
unreasonably withheld or delayed.
5. Repairs
During the lease term, the Tenant shall make, at Tenant’s expense, all necessary repairs to the
Leased Premises. Repairs shall include such items as routine repairs of floors, walls, ceilings,
and other parts of the Leased Premises damaged or worn through normal occupancy, except for
major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth
in this Lease.
6. Alterations and Improvements
Tenant, at Tenant’s expense, shall have the right, on obtaining Landlord’s consent, to remodel,
redecorate, and make additions, improvements, and replacements of and to all or any part of the
Leased Premises from time to time as Tenant may deem desirable, provided the same are made
in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to
place and install personal property, trade fixtures, equipment, and other temporary installations
in and that the Leased Premises, and fasten the same to the premises. 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 Premises 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 Premises caused by such removal.
7. Property Taxes
Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special
assessments coming due during the Lease term on the Leased Premises, and all personal property
taxes with respect to Landlord’s personal property, if any, on the Leased Premises. Tenant shall
be responsible for paying all personal property taxes with respect to Tenant’s personal property at
the Leased Premises.
8. Insurance
If the Leased Premises or any other part of the Building is damaged by fire or other casualty
resulting from any act of negligence by Tenant or by any of Tenant’s agents, employees, or
invitees, rent shall not be diminished or abated while such damages are under repair, and Tenant
shall be responsible for the costs of repair not covered by insurance.
Landlord shall maintain fire and extended coverage insurance on the Building and the Leased
Premises in such amount as Landlord shall deem appropriate. Tenant shall be responsible, at its
expense, for fire and extended coverage insurance on all of its personal property, including
removable trade fixtures, located in the Leased Premises.
Tenant and Landlord shall, each at its own expense, maintain a policy or policies of
comprehensive general liability insurance with respect to the particular activities of each in the
Building with the premiums thereon fully paid on or before due date. Such insurance policy shall
be issued by and binding on an insurance company approved by Landlord, and shall afford
minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury,
property damage, or combination thereof. Tenant shall provide Landlord with current
Certificates of Insurance evidencing Tenant’s compliance with this term.
9. Utilities
Tenant shall pay all charges for water, sewer, gas, electricity, telephone, internet, and other
services and utilities used by Tenant on the Leased Premises during the term of this Lease unless
otherwise expressly agreed in writing by Landlord. In the event that any utility or service
provided to the Leased Premises is not separately metered, Landlord shall pay the amount due
and separately invoice Tenant for Tenant’s pro rata share of the charges.
Tenant shall pay such all such utility charges prior to the due date. Tenant acknowledges that the
Leased Premises are designed to provide standard office use electrical facilities and standard
office lighting. Tenant shall not use any equipment or devices that utilize excessive electrical
energy or that may, in Landlord’s reasonable opinion, overload the wiring or interfere with
electrical services to other tenants.
10. Signs
Following Landlord’s consent, Tenant shall have the right to place on the Leased Premises, at
locations selected by Tenant, any signs that are permitted by applicable zoning ordinances and
private restrictions. Landlord may refuse consent to any proposed signage that is in Landlord’s
opinion too large, deceptive, unattractive, or otherwise inconsistent with or inappropriate to the
Leased Premises or use of any other tenant. Landlord shall assist and cooperate with Tenant in
obtaining any necessary permission from governmental authorities or adjoining owners and
occupants for Tenant to place or construct the foregoing signs. Tenant shall repair all damage to
the Leased Premises resulting from the removal of signs installed by Tenant.
11. Entry
Landlord shall have the right to enter the Leased Premises at reasonable hours to inspect the
same, provided Landlord shall not thereby unreasonably interfere with Tenant’s business on the
Leased Premises.
12. Parking
During the term of this Lease, Tenant shall have the non-exclusive use in common with
Landlord, other tenants of the Building, their guests and invitees, of the non-reserved common
automobile parking areas, driveways, and footways, subject to rules and regulations for the use
thereof as prescribed from time to time by Landlord. Landlord reserves the right to designate
parking areas for Tenant and Tenant’s agents and employees. Tenant shall provide Landlord with
a list of all license numbers for the cars owned by Tenant, its agents, and employees.
13. Building Rules
Tenant will comply with the rules of the Building adopted and altered by Landlord from time to
time and will cause all of its agents, employees, invitees, and visitors to do so; all changes to
such rules will be sent by Landlord to Tenant in writing. The initial rules for the Building are
attached hereto as Exhibit “A” and incorporated herein for all purposes.
14. Damage and Destruction
If the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire,
casualty, or structural defects, such damage or defects not being the result of any act of
negligence by Tenant or by any of Tenant’s agents, employees, or invitees, that the same cannot
be used for Tenant’s purposes, then Tenant shall have the right within ninety (90) days following
damage to elect by notice to Landlord to terminate this Lease as of the date of such damage. In
the event of minor damage to any part of the Leased Premises, and if such damage does not
render the Leased Premises unusable for Tenant’s purposes, Landlord shall promptly repair such
damage at the cost of the Landlord. In making the repairs called for in this paragraph, Landlord
shall not be liable for any delays resulting from strikes, governmental restrictions, inability to
obtain necessary materials or labor, or other matters that are beyond the reasonable control of
Landlord. Tenant shall be relieved from paying rent and other charges during any portion of the
Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in
part, for Tenant’s purposes. Rentals and other charges paid in advance for any such periods shall
be credited on the next ensuing payments if any, but if no further payments are to be made, any
such advance payments shall be refunded to Tenant. The provisions of this paragraph extend not
only to the matters aforesaid, but also to any occurrence that is beyond Tenant’s reasonable
control and that renders the Leased Premises, or any appurtenance thereto, inoperable or unfit for
occupancy or use, in whole or in part, for Tenant’s purposes.
15. Default
In the event of a default made by Tenant in the payment of rent when due to Landlord, Tenant
shall have fifteen (15) days after receipt of written notice thereof to cure such default. In the
event of a default made by Tenant in any of the other covenants or conditions to be kept,
observed, and performed by Tenant, Tenant shall have thirty (30) days after receipt of written
notice thereof to cure such default. In the event that the Tenant shall fail to cure any default
within the time allowed under this paragraph, Landlord may declare the term of this Lease ended
and terminated by giving Tenant written notice of such intention, and if possession of the Leased
Premises is not surrendered, Landlord may reenter said premises. Landlord shall have, in
addition to the remedy above provided, any other right or remedy available to Landlord on
account of any Tenant default, either in law or equity. Landlord shall use reasonable efforts to
mitigate its damages.
16. Quiet Possession
Landlord covenants that on performance by Tenant of its obligations hereunder, Landlord will
keep and maintain Tenant in exclusive, quiet, peaceable, undisturbed, and uninterrupted
possession of the Leased Premises during the term of this Lease.
17. Condemnation
If any legally constituted authority condemns the Building or such part thereof, which shall make
the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes
possession, and Landlord and Tenant shall account for rental as of that date. Such termination
shall be without prejudice to the rights of either party to recover compensation from the
condemning authority for any loss or damage caused by the condemnation. Neither party shall
have any rights in or to any award made to the other by the condemning authority.
18. Subordination
Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust, or other lien
presently existing or hereafter arising on the Leased Premises, or on the Building, and to any
renewals, refinancing, and extensions thereof, but Tenant agrees that any such mortgagee shall
have the right at any time to subordinate such mortgage, deed of trust, or other lien to this Lease
on such terms and subject to such conditions as such mortgagee may deem appropriate in its
discretion. Landlord is hereby irrevocably vested with full power and authority to subordinate
this Lease to any mortgage, deed of trust or other lien now existing or hereafter placed on the
Leased Premises of the Building. Tenant agrees that it will from time to time, on request by
Landlord, execute and deliver to such persons as Landlord shall request a statement in recordable
form certifying that this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so modified), stating the dates to which
rent and other charges payable under this Lease have been paid; stating that Landlord is not in
default hereunder (or if Tenant alleges a default stating the nature of such alleged default); and
further stating such other matters as Landlord shall reasonably require.
19. Security Deposit
Landlord shall hold the Security Deposit without liability for interest and as security for the
performance by Tenant of Tenant’s covenants and obligations under this Lease, it being
expressly understood that Tenant shall not consider the Security Deposit an advance payment of
rent or a measure of Landlord’s damages in case of default. Unless otherwise provided by law or
regulation, Landlord may commingle the Security Deposit with Landlord’s other funds. Landlord
may, from time to time, without prejudice to any other remedy, use the Security Deposit to the
extent necessary to make good any arrearages of rent or to satisfy any other covenant or
obligation of Tenant hereunder. Following any such application of the Security Deposit, Tenant
shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit
to its original amount. If Tenant is not in default at the termination of this Lease, Landlord shall
return the balance of the Security Deposit remaining after any such application to Tenant.
20. Notice
Any notice required or permitted under this Lease shall be deemed sufficiently given or served if
sent by United States certified mail, return receipt requested, addressed as follows:
Landlord:
Tenant:
Landlord and Tenant shall each have the right from time to time to change the place notice is to
be given under this paragraph by written notice to the other party.
21. Brokers
Tenant represents that Tenant was not shown the Premises by any real estate broker or agent, and
that Tenant has not otherwise engaged in, any activity that could form the basis for a claim for
real estate commission, brokerage fee, finder’s fee, or other similar charge, in connection with
this Lease.
22. Waiver
No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to
take any action on account of such default if such default persists or is repeated, and 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 therein stated. One or more waivers by Landlord or Tenant
shall not be construed as a waiver of a subsequent breach of the same covenant, term, or
condition.
23. Memorandum of Lease
The parties hereto contemplate that this Lease should not and shall not be filed for record, but in
lieu thereof, at the request of either party, Landlord and Tenant shall execute a Memorandum of
Lease to be recorded for the purpose of giving record notice of the appropriate provisions of this
Lease.
24. Headings
The headings used in this Lease are for convenience of the parties only and shall not be
considered in interpreting the meaning of any provision of this Lease.
25. Successors
The provisions of this Lease shall extend to and be binding on Landlord and Tenant and their
respective legal representatives, successors, and assigns.
26. Consent
Landlord shall not unreasonably withhold or delay its consent with respect to any matter for
which Landlord’s consent is required or desirable under this Lease.
27. Performance
If there is a default with respect to any of Landlord’s covenants, warranties, or representations
under this Lease, and if the default continues more than fifteen (15) days after notice in writing
from Tenant to Landlord specifying the default, Tenant may, at its option and without affecting
any other remedy hereunder, cure such default and deduct the cost thereof from the next accruing
installment or installments of rent payable hereunder until Tenant shall have been fully
reimbursed for such expenditures, together with interest thereon at a rate equal to the lesser of
______ percent (%) per annum or the then-highest lawful rate. If this Lease terminates prior to
Tenant’s receiving full reimbursement, Landlord shall pay the un-reimbursed balance plus
accrued interest to Tenant on demand.
28. Compliance with Law
Tenant and Landlord each shall comply with all laws, orders, ordinances, and other public
requirements now or hereafter affecting the Leased Premises.
29. Dispute Resolution
Except for any claim relating to Tenant’s default in the payment of rent, Landlord and Tenant
agree to submit any and all other claims, controversies, and disputes between Tenant and
Landlord arising out of or relating to the Leased Premises, this Lease, or the parties’
performances due hereunder to mediation pursuant to the mediation rules contained in applicable
state statutes and rules of civil procedure, prior to demanding arbitration. Landlord and Tenant
agree to maintain all communications made at such mediation in the strictest confidence between
themselves and their counsel unless otherwise required to disclose same under applicable law.
If, after sixty (60) days of mediation, the parties fail to reach agreement, the claim, controversy,
or dispute shall be resolved by binding arbitration administered by and in accordance with the
commercial rules of the American Arbitration Association, and any court of competent
jurisdiction shall enter final judgment on any such final award rendered by the arbitrators.
30. Final Agreement
This Agreement terminates and supersedes all prior understandings or agreements on the subject
matter hereof. This Agreement may be modified only by a further writing that is duly executed
by both parties.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first
above written.
_____________________________________
Landlord
______________________________________
Tenant
COMMERCIAL LEASE ANALYSIS ASSIGNMENT INSTRUCTIONS
OVERVIEW
In this paper, you will review the commercial lease agreement provided and respond to questions
analyzing the terms of that lease. The paper must be at least 1,200 words and include at least 3
scholarly sources other than the course textbook/materials.
INSTRUCTIONS
Review the Commercial Lease Agreement.
Answer the questions below with a minimum of 200 words for each answer (a total of at least
1,200 words), and a total of at least three scholarly sources other than the textbook, cited in-text
and in a reference list in current APA format. While Question 6 directly addresses a Biblical
worldview, such principles should also inform your answers throughout.
Add an APA-formatted title page, headers, and page numbers to your answers.
1. What is the distinction between a “commercial” and a “residential” lease? How do the
differences in use of the leased property impact the terms of the lease? In a commercial lease
agreement, should the law seek to protect the interests of the commercial tenant more than the
interests of the commercial landlord? Why or why not?
2. Sections 5 and 6, respectively, impose on the commercial tenant the obligation of making
repairs to the leased property, and of making alterations and improvements to the leased
property. Should the lease impose these obligations on the tenant, or should such obligations be
legally imposed on the commercial landlord? Explain your answer.
3. In the default provisions of Section 15, what is the landlord’s duty to “mitigate” damages?
Should the landlord be required by law to mitigate? Explain.
4. Sections 2 and 19 discuss the creation of, and the parties’ rights in, the security deposit. Do
these rights favor the landlord or the tenant? Is that appropriate? Why or why not?
5. Section 29 requires mediation, followed by arbitration, in lieu of litigation, to resolve disputes.
What are the advantages and disadvantages of such a provision? How should mediators and
arbitrators be selected?
6. As a businessperson guided by a Biblical worldview, what changes would you make in this
lease to make the terms comport more closely to Scripture?
Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.
Purchase answer to see full
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