Commercial Lease Agreement Template Texas

COMMERCIAL LEASE AGREEMENT TEMPLATE TEXAS

1. Document Preamble & Recitals

This Commercial Lease Agreement (the "Agreement") is entered into and made effective as of the ____ day of _____________, 20 (the "Effective Date"), by and between the following parties:

LANDLORD: ________________________________________, a [State of Organization and Entity Type, e.g., Texas limited liability company], having its principal place of business at ________________________________________________________________ (hereinafter referred to as the "Landlord").

TENANT: ________________________________________, a [State of Organization and Entity Type, e.g., Texas corporation], having its principal place of business at ________________________________________________________________ (hereinafter referred to as the "Tenant").

RECITALS

WHEREAS, Landlord is the lawful owner of the real property and improvements commonly known as ________________________________________, located in the City of ________________________, County of ________________________, State of Texas, bearing the street address of ________________________________________________________ (the "Building"); and

WHEREAS, Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, certain commercial space within the Building, subject to the terms, covenants, conditions, and provisions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants, promises, and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

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2. Operational Definitions

For the purposes of this Agreement, the following terms shall have the meanings ascribed to them below, and such definitions shall apply equally to the singular and plural forms of the terms defined:

1. "Additional Rent" means all sums of money, other than Base Rent, that shall become due and payable by Tenant to Landlord pursuant to the provisions of this Agreement, including, without limitation, Operating Costs, utility charges, and taxes.
2. "Base Rent" means the fixed monthly rental compensation payable by Tenant to Landlord for the use and occupancy of the Leased Premises, as specified in Section 3 of this Agreement.
3. "Commencement Date" means the ____ day of _____________, 20, upon which date the term of this Agreement shall commence and Tenant's obligation to pay Base Rent shall begin.
4. "Common Areas" means all areas, facilities, and improvements provided, maintained, and designated by Landlord from time to time for the general use and convenience of Tenant and other tenants of the Building, including, but not limited to, lobbies, corridors, parking lots, sidewalks, and driveways.
5. "Expiration Date" means the ____ day of _____________, 20, unless this Agreement is sooner terminated in accordance with its terms or applicable law.
6. "Force Majeure" means acts of God, strikes, lockouts, labor disputes, acts of public enemies, wars, blockades, insurrections, riots, epidemics, pandemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, civil disturbances, explosion, inability to obtain materials, supplies, or labor due to governmental restrictions, or any other cause beyond the reasonable control of the party claiming relief.
7. "Leased Premises" means that certain commercial space located within the Building, designated as Suite No. ________, comprising approximately ____________ rentable square feet, as more particularly outlined on Exhibit A attached hereto and incorporated herein by reference.
8. "Operating Costs" means all reasonable and necessary costs and expenses incurred by Landlord in the operation, maintenance, management, security, and repair of the Building and Common Areas, calculated in accordance with generally accepted accounting principles (GAAP) consistently applied.
9. "Security Deposit" means the sum of $________________ deposited by Tenant with Landlord pursuant to Section 3.3 to secure the faithful performance of all terms, covenants, and conditions of this Agreement by Tenant.
10. "Term" means the period commencing on the Commencement Date and expiring on the Expiration Date, inclusive of any properly executed Renewal Terms.

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3. Substantive Terms & Obligations

3.1 Grant and Description of Leased Premises

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Leased Premises, together with the non-exclusive right to use the Common Areas in common with other tenants of the Building, subject to the rules and regulations promulgated by Landlord from time to time.

3.2 Term

The Term of this Agreement shall commence on the Commencement Date and shall end on the Expiration Date, unless terminated earlier in accordance with the provisions of this Agreement.

3.3 Rent and Security Deposit

1. Base Rent: Tenant shall pay to Landlord, without prior demand, deduction, or setoff, a monthly Base Rent in the amount of $________________, payable in advance on the first (1st) day of each and every calendar month during the Term. If the Commencement Date falls on a day other than the first day of a calendar month, the Base Rent for such fractional month shall be prorated on a per diem basis.
2. Additional Rent: Tenant shall pay all Additional Rent as and when due under this Agreement. Base Rent and Additional Rent are collectively referred to herein as "Rent." All payments shall be made payable to Landlord at the address designated in Section 5 or via electronic funds transfer as directed by Landlord.
3. Security Deposit: Concurrently with the execution of this Agreement, Tenant shall deposit with Landlord the Security Deposit in the amount of $________________. The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all terms, covenants, and conditions of this Agreement. Landlord shall not be required to keep the Security Deposit in a segregated account, nor shall it bear interest. If Tenant defaults with respect to any provision of this Agreement, Landlord may use, apply, or retain all or any portion of the Security Deposit for the payment of any Rent or other sum in default, or for the payment of any amount Landlord may spend or become obligated to spend by reason of Tenant's default.

3.4 Permitted Use

The Leased Premises shall be used and occupied solely for the purpose of ________________________________________ and for no other purpose whatsoever. Tenant shall not use or permit the Leased Premises to be used for any unlawful purpose, nor in any manner that will constitute waste, nuisance, or unreasonable annoyance to other tenants or occupants of the Building.

3.5 Maintenance, Repairs, and Alterations

1. Landlord's Obligations: Landlord shall maintain, repair, and replace the structural elements of the Building, including the foundation, exterior walls, roof, and common utility systems, in good working order and condition, except to the extent such maintenance and repair is necessitated by the negligence or willful misconduct of Tenant, its agents, employees, or invitees.
2. Tenant's Obligations: Tenant shall, at its sole cost and expense, maintain the interior of the Leased Premises in a clean, safe, and sanitary condition, and shall make all interior repairs necessary to keep the Leased Premises in good condition, ordinary wear and tear excepted.
3. Alterations: Tenant shall not make any structural alterations, additions, or improvements to the Leased Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed. All alterations made by Tenant shall become the property of Landlord upon the expiration or termination of this Agreement, unless Landlord requires their removal pursuant to Section 3.5.4.

3.6 Compliance with Laws

Tenant shall, at its sole cost and expense, promptly comply with all applicable federal, state, county, and municipal laws, ordinances, rules, regulations, and orders (including the Americans with Disabilities Act and environmental protection statutes) relating to the use, condition, and occupancy of the Leased Premises.

3.7 Insurance and Indemnification

1. Tenant's Insurance: Tenant shall, during the entire Term, maintain at its sole expense commercial general liability insurance insuring Landlord and Tenant against liability for injury to persons or property occurring in or about the Leased Premises, with minimum limits of $________________ per occurrence and $________________ general aggregate. Tenant shall also maintain property insurance covering all personal property, trade fixtures, and leasehold improvements located within the Leased Premises.
2. Indemnification: Tenant agrees to defend, indemnify, and hold harmless Landlord, its officers, directors, agents, and employees, from and against any and all claims, losses, liabilities, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or resulting from: (a) the use or occupancy of the Leased Premises by Tenant or its invitees; (b) any breach or default by Tenant in the performance of its obligations under this Agreement; or (c) any act, omission, negligence, or willful misconduct of Tenant, its agents, contractors, employees, or invitees.

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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 a material breach and "Event of Default" by Tenant under this Agreement:

1. Failure by Tenant to pay any installment of Base Rent, Additional Rent, or any other monetary obligation due hereunder within five (5) business days after the same is due;
2. Failure by Tenant to observe or perform any other covenant, condition, or agreement contained in this Agreement to be observed or performed by Tenant, where such failure continues for a period of thirty (30) business days after written notice thereof from Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that it cannot reasonably be cured within such thirty (30) business-day period, Tenant shall not be deemed in default if Tenant commences the cure within such period and thereafter diligently and continuously prosecutes the same to completion;
3. The filing of a petition by or against Tenant under any bankruptcy or insolvency law, or the appointment of a receiver or trustee for all or substantially all of Tenant's assets;
4. The making by Tenant of an assignment for the benefit of creditors; or
5. The abandonment or vacating of the Leased Premises by Tenant prior to the expiration of the Term.

4.2 Landlord's Remedies

Upon the occurrence of any Event of Default, Landlord shall have the following rights and remedies, which are cumulative and in addition to any other rights or remedies available at law or in equity:

1. Termination of Lease: Landlord may terminate this Agreement and Tenant's right to possession of the Leased Premises by providing written notice of termination, whereupon Tenant shall immediately surrender possession of the Leased Premises to Landlord.
2. Re-entry and Reletting: Landlord may re-enter the Leased Premises and remove all persons and property therefrom, and may relet the Leased Premises on such terms as Landlord may reasonably deem advisable. Tenant shall remain liable for any deficiency between the Rent reserved hereunder and the net proceeds of any reletting.
3. Acceleration of Rent: Landlord may declare the entire balance of Rent for the remainder of the Term to be immediately due and payable, discounting the future value to present worth at a commercially reasonable rate.
4. Cure by Landlord: Landlord may, but shall not be obligated to, cure any default by Tenant at Tenant's sole expense, and any sums expended by Landlord in so doing shall be immediately due and payable as Additional Rent, together with interest at the maximum rate permitted by Texas law.

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5. Boilerplate Legal Provisions

5.1 Severability

If any provision of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby, and each provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

5.2 Entire Agreement

This Agreement, including all exhibits and attachments referenced herein, constitutes the entire agreement between Landlord and Tenant pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, of the parties. No amendment, modification, or waiver of this Agreement shall be binding unless executed in writing by the party against whom enforcement is sought.

5.3 Force Majeure

Whenever a period of time is herein prescribed for action to be taken by either party, such party shall not be liable or responsible for, and there shall be excluded from the computation for any such period of time, any delays due to events of Force Majeure; provided, however, that this Section 5.3 shall not excuse Tenant from the timely payment of Rent or any other monetary obligation required under this Agreement.

5.4 Governing Law and Venue

This Agreement shall be interpreted, construed, and enforced in accordance with the laws of the State of Texas, without regard to its conflict of laws principles. Any legal action, proceeding, or arbitration arising out of this Agreement shall be brought exclusively in the state courts located in ________________________ County, Texas, or the United States District Court for the ________________________ District of Texas, and the parties hereby consent to the personal jurisdiction and venue of such courts.

5.5 Dispute Resolution

In the event of any dispute, controversy, or claim arising out of or relating to this Agreement, the parties agree to first negotiate in good faith for a period of thirty (30) days. If the dispute is not resolved through negotiation, the parties agree to submit the matter to non-binding mediation administered by a mutually agreed-upon mediation service in the State of Texas prior to initiating formal litigation or arbitration.

5.6 Notices

Any notice, demand, consent, approval, or communication required or permitted under this Agreement shall be in writing and shall be deemed sufficiently given if delivered personally, sent by nationally recognized overnight courier service with tracking, or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective parties at the addresses set forth in Section 1 (or to such other address as either party may designate by notice given in accordance with this Section).

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6. Formal Execution Block

IN WITNESS WHEREOF, the parties hereto have executed this Commercial Lease Agreement under seal as of the Effective Date written above.

LANDLORD:

[Landlord Entity Name]

By: __________________________________________________
Name: ________________________________________________
Title: _________________________________________________
Date: _________________________________________________

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TENANT:

[Tenant Entity Name]

By: __________________________________________________
Name: ________________________________________________
Title: _________________________________________________
Date: _________________________________________________