Commercial Lease Agreement Template Bc

COMMERCIAL LEASE AGREEMENT TEMPLATE BC

THIS COMMERCIAL LEASE AGREEMENT (the "Agreement") is made and entered into as of this [Day] day of [Month], [Year] (the "Effective Date"), by and between the parties defined below.

1. DOCUMENT PREAMBLE & RECITALS

BETWEEN: [Landlord Legal Name], having its registered office or principal place of business at [Landlord Address] (hereinafter designated as the "Landlord");

AND: [Tenant Legal Name], having its registered office or principal place of business at [Tenant Address] (hereinafter designated as the "Tenant").

WHEREAS: A. The Landlord is the registered owner of, or has lawful control over, the real property and improvements located at [Property Street Address], City of [City], Province of British Columbia (the "Building"); B. The Landlord desires to lease to the Tenant, and the Tenant desires to lease from the Landlord, the Premises (as defined herein) situated within the Building, subject to the terms, covenants, and conditions set forth in this Agreement; and C. This Agreement is intended to be governed by the laws of the Province of British Columbia, including the Land Transfer Form Act, R.S.B.C. 1996, c. 252, and the Commercial Tenancy Act, R.S.B.C. 1996, c. 57, as amended.

NOW, THEREFORE, in consideration of the mutual covenants, rents, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by both Parties, the Parties covenant and agree as follows:

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2. OPERATIONAL DEFINITIONS

For the purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the meanings set forth below:

1. "Additional Rent" means all sums of money, other than Base Rent, payable by the Tenant under this Agreement, including, without limitation, the Tenant’s Proportionate Share of Operating Costs, Property Taxes, utilities, and any other charges or assessments specified herein.
2. "Base Rent" means the annual fixed rent payable by the Tenant to the Landlord pursuant to Section 3.1 of this Agreement, exclusive of applicable taxes.
3. "Business Day" means any day other than a Saturday, Sunday, or statutory holiday recognized in the Province of British Columbia.
4. "Commencement Date" means [Commencement Date, e.g., November 1, 2023], notwithstanding the actual date of execution of this Agreement.
5. "Common Areas" means those areas and facilities within the Building and property provided and designated by the Landlord from time to time for the general use and convenience of the Tenant and other tenants of the Building, including lobbies, hallways, elevators, parking lots, and sidewalks.
6. "Default" means any breach, non-performance, or non-observance by the Tenant of any covenant, term, provision, or condition of this Agreement.
7. "Expiration Date" means [Expiration Date, e.g., October 31, 2028], unless sooner terminated in accordance with the provisions hereof.
8. "Force Majeure" means acts of God, strikes, lockouts, labor disputes, civil commotions, terrorist acts, cyber-attacks of extraordinary scale, epidemics, pandemics, government restrictions, fire, or other casualty beyond the reasonable control of the affected Party.
9. "Gross Rent" means the aggregate sum of Base Rent and Additional Rent payable by the Tenant in any given billing period.
10. "Operating Costs" means the total reasonable costs and expenses incurred or borne by the Landlord in operating, maintaining, managing, and repairing the Building, Common Areas, and land, calculated in accordance with generally accepted accounting principles consistently applied.
11. "Premises" means that portion of the Building designated for the exclusive use of the Tenant, known as Suite [Suite Number], comprising approximately [Number] rentable square feet, as outlined in red on the floor plan attached hereto as Schedule A.
12. "Proportionate Share" means the percentage derived by dividing the rentable square footage of the Premises (stipulated as [Number] sq. ft.) by the total rentable square footage of the Building (stipulated as [Number] sq. ft.), which is agreed to be [Percentage, e.g., 12.5%].
13. "Security Deposit" means the sum of [Dollar Amount] ($[0.00]) deposited by the Tenant with the Landlord as security for the faithful performance of the Tenant's obligations under this Agreement.

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3. SUBSTANTIVE TERMS & OBLIGATIONS

3.1 Grant of Lease and Term

The Landlord hereby leases the Premises to the Tenant, and the Tenant hereby takes and leases the Premises from the Landlord, for and during the term commencing on the Commencement Date and expiring on the Expiration Date, yielding and paying therefor the Rent as herein provided.

3.2 Rent and Payment Mechanics

1. Base Rent: The Tenant shall pay to the Landlord Base Rent in the annual amount of [Dollar Amount] ($[0.00]), payable in equal monthly installments of [Dollar Amount] ($[0.00]) in advance on the first (1st) day of each and every calendar month during the Term, without any prior demand, deduction, set-off, or abatement whatsoever.
2. Additional Rent: The Tenant shall pay to the Landlord as Additional Rent the Tenant’s Proportionate Share of all Operating Costs and Property Taxes in accordance with statements rendered by the Landlord. Additional Rent shall be paid monthly in estimated installments determined by the Landlord, subject to annual reconciliation.
3. Applicable Taxes: The Tenant shall pay and remit all applicable taxes, including the Goods and Services Tax (GST) and Provincial Sales Tax (PST) levied on or in respect of the Base Rent and Additional Rent.
4. Late Charges: Any amount of Rent not paid when due shall bear interest at the rate of eighteen percent (18%) per annum, or the maximum rate permitted by applicable British Columbia law, calculated monthly from the due date until paid in full, without prejudice to the Landlord's other remedies for Default.

3.3 Security Deposit

Upon execution of this Agreement, the Tenant shall deposit the Security Deposit with the Landlord. The Landlord may apply all or part of the Security Deposit to cure any Default of the Tenant or to compensate the Landlord for any loss or damage sustained by reason of the Tenant’s Default. If any portion of the Security Deposit is so applied, the Tenant shall, within ten (10) Business Days after written demand, restore the Security Deposit to its original amount. The Security Deposit, without interest, shall be returned to the Tenant within thirty (30) days following the expiration or termination of this Agreement and the surrender of the Premises in compliance with all terms hereof.

3.4 Permitted Use

The Premises shall be used and occupied exclusively for [Permitted Commercial Use, e.g., general executive office and administrative purposes] and for no other purpose whatsoever. The Tenant shall not use, permit, or suffer the use of the Premises or any part thereof for any unlawful purpose, nor in any manner that creates a nuisance, waste, or hazard, or that invalidates or increases the rate of insurance on the Building.

3.5 Maintenance, Repairs, and Alterations

1. Tenant Obligations: The Tenant shall, at its sole cost and expense, maintain the interior of the Premises in a clean, neat, safe, and sanitary condition, and shall make all non-structural repairs necessary to keep the Premises in such condition.
2. Landlord Obligations: The Landlord shall maintain, repair, and replace the structural elements of the Building, the roof, foundation, exterior walls, and the mechanical, electrical, and plumbing systems servicing the Common Areas.
3. Alterations: The Tenant shall not make any structural alterations, additions, or improvements to the Premises without the prior written consent of the Landlord, which consent shall not be unreasonably withheld or delayed. All alterations made by the Tenant shall comply with all applicable municipal, provincial, and federal codes and regulations.

3.6 Insurance and Indemnification

1. Tenant Insurance: The Tenant shall, at its sole expense, maintain throughout the Term:
   • Commercial General Liability (CGL) insurance with a limit of not less than [Dollar Amount, e.g., $5,000,000] per occurrence, naming the Landlord as an additional insured.
   • All-risks property insurance covering the full replacement value of the Tenant’s trade fixtures, equipment, and alterations.
2. Indemnification: The Tenant shall indemnify and save harmless the Landlord from and against any and all claims, actions, damages, liabilities, and expenses (including legal fees on a solicitor-and-client basis) arising out of or resulting from the use or occupancy of the Premises by the Tenant, its agents, employees, contractors, or invitees, or any breach of this Agreement by the Tenant.

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4. DEFAULT, TERMINATION, AND REMEDIES

4.1 Events of Default

The occurrence of any one or more of the following events shall constitute an "Event of Default" under this Agreement:

1. The failure of the Tenant to pay any installment of Base Rent, Additional Rent, or any other monetary sum due hereunder within five (5) Business Days after written notice from the Landlord that the same is overdue.
2. The failure of the Tenant to observe, perform, or comply with any other covenant, term, or condition of this Agreement for a period of thirty (30) Business Days after written notice specifying such failure has been given by the Landlord to the Tenant (provided that if such failure cannot reasonably be cured within thirty (30) Business Days, the Tenant shall not be in Default if it commences to cure within such period and diligently and continuously prosecutes the same to completion).
3. The making by the Tenant of an assignment for the benefit of creditors, the filing of a petition in bankruptcy or insolvency, the appointment of a receiver or trustee for all or substantially all of the Tenant’s assets, or the initiation of any winding-up or liquidation proceedings.
4. The abandonment or vacation of the Premises by the Tenant for a continuous period exceeding fifteen (15) Business Days.

4.2 Landlord’s Remedies

Upon the occurrence of any Event of Default, and in addition to any other rights or remedies provided by law or equity, the Landlord may, at its option, exercise any one or more of the following remedies:

1. Termination: Terminate this Agreement by giving written notice to the Tenant, whereupon this Agreement shall terminate, and the Tenant shall immediately surrender the Premises to the Landlord.
2. Re-entry: Re-enter the Premises, by legal process or peaceable self-help, and expel the Tenant and remove all persons and property therefrom, without being deemed guilty of any manner of trespass and without prejudice to any other remedies.
3. Acceleration of Rent: Declare the entire balance of Base Rent and Additional Rent for the remainder of the Term to be immediately due and payable.
4. Mitigation and Re-letting: Re-let the Premises or any part thereof for such rent and upon such terms as the Landlord may reasonably deem advisable, applying the proceeds first to the costs of re-entry and re-letting, and second to the payment of Rent due hereunder, with the Tenant remaining liable for any deficiency.

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5. BOILERPLATE LEGAL PROVISIONS

5.1 Severability

If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court or tribunal of competent jurisdiction, such provision shall be severed from this Agreement, and the remaining provisions shall remain in full force and effect, provided that the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.

5.2 Entire Agreement

This Agreement, including all attached schedules, constitutes the entire agreement between the Landlord and the Tenant pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written. There are no warranties, representations, or other agreements between the Parties in connection with the subject matter hereof except as specifically set forth herein.

5.3 Force Majeure

Neither Party shall be held liable or responsible to the other Party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for the obligation to pay Rent) when and to the extent such failure or delay is caused by or results from acts of Force Majeure.

5.4 Governing Law and Attornment

This Agreement shall be construed, interpreted, and governed by the laws in force in the Province of British Columbia and the federal laws of Canada applicable therein. Each Party irrevocably submits to the exclusive jurisdiction of the courts of British Columbia sitting in the City of [City, e.g., Vancouver] for the resolution of any dispute arising out of or relating to this Agreement.

5.5 Dispute Resolution

Any dispute, controversy, or claim arising out of or relating to this Agreement, including its formation, breach, termination, or invalidity, shall first be subjected to good-faith mediation between senior executives of the Parties. If the dispute is not resolved within thirty (30) days of the commencement of mediation, it shall be submitted to final and binding arbitration administered by the British Columbia International Commercial Arbitration Centre (BCICAC) pursuant to its rules, with the place of arbitration being [City], British Columbia, and the language of arbitration being English.

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6. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties hereto have executed this Commercial Lease Agreement under seal, acting through their duly authorized officers or representatives, as of the Effective Date first written above.

LANDLORD:

[Landlord Corporate Name]

Per: _____________________________________
Name: [Authorized Signatory Name]
Title: [Authorized Signatory Title, e.g., Director / Authorized Signatory]
Date: [Date]
(I/We have the authority to bind the corporation)

TENANT:

[Tenant Corporate Name]

Per: _____________________________________
Name: [Authorized Signatory Name]
Title: [Authorized Signatory Title, e.g., President / Authorized Signatory]
Date: [Date]
(I/We have the authority to bind the corporation)