The Commercial Property Lease Agreement serves as the foundational document for commercial real estate transactions in the United States. It is essential when any business entity seeks to lease commercial space for retail, office, industrial, or other business purposes. This agreement protects both landlord and tenant interests by clearly defining rights, responsibilities, and obligations under both federal and state jurisdictions. It typically includes detailed provisions for property use, maintenance, improvements, insurance, and default remedies, while ensuring compliance with local zoning laws and building codes.
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1. Parties: Identification of landlord and tenant, including legal entity details
2. Background: Context of the lease arrangement and property description
3. Definitions: Key terms used throughout the agreement
4. Demise: The formal granting of the lease and property description
5. Term: Duration of lease, commencement date, and end date
6. Rent: Payment terms, amounts, and schedule
7. Permitted Use: Allowed uses of the property
8. Maintenance and Repairs: Responsibilities for property upkeep
9. Insurance: Required insurance coverage
10. Default and Remedies: Consequences of breach and available remedies
1. Option to Renew: Terms for lease extension when parties want to include possibility of extension
2. Subletting and Assignment: Rights to transfer lease to third parties when tenant might need flexibility to transfer rights
3. Improvements and Alterations: Rights and procedures for modifying property when tenant may need to modify premises
4. Early Termination: Conditions for ending lease early when flexibility for early exit is desired
1. Property Plan: Detailed floor plans and property boundaries
2. Rent Schedule: Detailed breakdown of rent payments and escalations
3. Building Rules: Specific rules and regulations for property use
4. Service Charge Schedule: Breakdown of additional charges and operating expenses
5. Condition Report: Documentation of property condition at lease start
6. Permitted Alterations: Specific modifications allowed without further approval
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