5 Year Commercial Lease Agreement Sample

5-YEAR COMMERCIAL LEASE AGREEMENT

This Commercial Lease Agreement (the "Agreement") is entered into as of [Effective Date] (the "Effective Date") by and between [Landlord Entity Name], a [Jurisdiction of Incorporation] corporation, with its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Entity Name], a [Jurisdiction of Incorporation] corporation, with its principal place of business at [Tenant Address] ("Tenant").

1. RECITALS

WHEREAS, Landlord is the legal owner of the real property located at [Property Address], including the improvements thereon (the "Premises"); and WHEREAS, Landlord desires to lease the Premises to Tenant, and Tenant desires to lease the Premises from Landlord, subject to the terms and conditions set forth herein.

2. OPERATIONAL DEFINITIONS

1. "Base Rent" shall mean the monthly sum of $[Dollar Amount] payable by Tenant to Landlord.
2. "Commencement Date" shall mean [Start Date].
3. "Expiration Date" shall mean the date exactly five (5) years following the Commencement Date.
4. "Lease Term" shall mean the period commencing on the Commencement Date and ending on the Expiration Date, unless sooner terminated pursuant to this Agreement.
5. "Operating Expenses" shall mean all costs and expenses incurred by Landlord for the operation, maintenance, and repair of the Premises, including property taxes, insurance premiums, and utilities.
6. "Permitted Use" shall mean [Specific Business Activity] and no other purpose without prior written consent from Landlord.

3. SUBSTANTIVE TERMS AND OBLIGATIONS

1. Grant of Lease. Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord, for the Lease Term under the conditions specified herein.
2. Rent Payments. Tenant shall pay Base Rent in monthly installments, due on the first day of each month. Payments made after the [Day] of the month shall incur a late fee of [Percentage]% of the outstanding balance.
3. Security Deposit. Upon execution, Tenant shall deposit $[Dollar Amount] with Landlord as security for the faithful performance of Tenant’s obligations. This sum shall be returned without interest within [Number] days following the Expiration Date, less any authorized deductions.
4. Maintenance and Repairs. Tenant shall, at its sole expense, maintain the interior of the Premises in good order and repair. Landlord shall be responsible for the structural integrity of the roof, foundation, and exterior walls.
5. Insurance. Tenant shall maintain, at its sole cost, a policy of Commercial General Liability insurance naming Landlord as an additional insured with limits of not less than $[Dollar Amount] per occurrence.
6. Compliance with Laws. Tenant shall, at its own expense, comply with all applicable municipal, state, and federal laws, ordinances, and regulations affecting the Premises and the Permitted Use.

4. DEFAULT, TERMINATION, AND REMEDIES

1. Events of Default. The following constitute a "Default": (a) failure to pay Rent within [Number] days of its due date; (b) failure to perform any other obligation under this Agreement for a period of thirty (30) business days following receipt of written notice from Landlord.
2. Termination for Cause. Upon a Default, Landlord may, at its option, terminate this Agreement upon written notice to Tenant.
3. Remedies. In the event of termination for Default, Landlord shall be entitled to: (a) recover all unpaid Rent through the date of termination; (b) recover damages for the loss of the benefit of the bargain; (c) pursue all other remedies available under the laws of [Jurisdiction].

5. BOILERPLATE LEGAL PROVISIONS

1. Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable to the fullest extent permitted by law.
2. Entire Agreement. This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements or negotiations, whether written or oral.
3. Force Majeure. Neither party shall be liable for failure to perform its obligations (other than the payment of Rent) if such failure results from acts of God, war, civil unrest, or other causes beyond the reasonable control of the affected party.
4. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction].
5. Dispute Resolution. Any controversy or claim arising out of or relating to this Agreement shall be settled by binding arbitration administered by [Arbitration Association] in accordance with its commercial rules, with venue in [City, State].

6. FORMAL EXECUTION BLOCK

LANDLORD: [Landlord Entity Name]

By: ___________________________ Name: [Signatory Name] Title: [Title] Date: _________________________

TENANT: [Tenant Entity Name]

By: ___________________________ Name: [Signatory Name] Title: [Title] Date: _________________________