Trec Commercial Lease Agreement Template

TREC COMMERCIAL LEASE AGREEMENT TEMPLATE

1. Document Preamble & Recitals

This Commercial Lease Agreement (hereinafter, the "Agreement" or "Lease") is entered into and made effective as of [Effective Date] (the "Effective Date"), by and between [Landlord Entity Name], having its principal place of business at [Landlord Address] (hereinafter referred to as the "Landlord"), and [Tenant Entity Name], having its principal place of business at [Tenant Address] (hereinafter referred to as the "Tenant").

RECITALS

WHEREAS, Landlord is the lawful owner of the real property situated in the County of [County Name], State of [Jurisdiction], more commonly known as [Property Street Address], including the building and improvements thereon (the "Building"); and

WHEREAS, Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, the Premises (as defined herein) upon the terms and conditions set forth hereinafter; and

WHEREAS, each Party warrants that it possesses full corporate and legal authority to enter into this binding commercial contract.

NOW, THEREFORE, in consideration of the mutual covenants, promises, and valuable consideration contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties 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 Lease, including, without limitation, Operating Expenses, utilities, and late charges.
2. "Base Rent" means the fixed monthly rental compensation paid by Tenant to Landlord for the use and occupancy of the Premises, in the initial amount of [Dollar Amount] per month, subject to scheduled escalations as set forth herein.
3. "Commencement Date" means [Commencement Date], upon which the term of this Lease officially commences, and from which date all obligations of Tenant, including the payment of rent, shall accrue.
4. "Common Areas" means all areas and facilities within the Building and property provided and designated by Landlord from time to time for the general use and convenience of Tenant and other tenants, including lobbies, hallways, parking lots, elevators, and sidewalks.
5. "Default" means the failure of either Party to perform, comply with, or observe any material covenant, condition, agreement, or obligation under this Lease within the specified cure periods.
6. "Expiration Date" means [Expiration Date], unless this Lease is sooner terminated pursuant to the terms hereof or extended by written agreement of the Parties.
7. "Operating Expenses" means all reasonable and necessary costs incurred by Landlord in the operation, maintenance, management, and repair of the Building and Common Areas, including real property taxes, insurance premiums, utilities, and routine maintenance.
8. "Premises" means that specific portion of the Building designated as Suite [Suite Number], comprising approximately [Square Footage] rentable square feet, as outlined on the floor plan attached hereto as Exhibit A.
9. "Security Deposit" means the sum of [Dollar Amount] deposited by Tenant with Landlord upon the execution of this Lease as security for the full and faithful performance by Tenant of all terms, covenants, and conditions of this Lease.
10. "Term" means the duration of this Lease, commencing on the Commencement Date and expiring on the Expiration Date, unless sooner terminated in accordance with the provisions hereof.

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3. Substantive Terms & Obligations

Section 3.1. Grant and Demise

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises, subject to all easements, covenants, conditions, and restrictions of record affecting the Building.

Section 3.2. Term of Lease

The Term of this Lease shall be for a period of [Number of Years] years, commencing on the Commencement Date and ending on the Expiration Date, unless terminated earlier in accordance with Section 4.

Section 3.3. Rent and Payment Obligations

1. Base Rent: Tenant shall pay to Landlord Base Rent in advance, without demand, offset, or deduction, on the first (1st) day of each calendar month throughout the Term. Payments shall be remitted to Landlord’s designated address or via electronic wire transfer pursuant to instructions provided by Landlord.
2. Additional Rent: Tenant shall pay all Additional Rent as billed by Landlord. Real property taxes and Operating Expenses shall be prorated based on Tenant's proportionate share of the Building, which is agreed to be [Percentage]%.
3. Late Charges: If any installment of Base Rent or Additional Rent is not received by Landlord within [Number] days after the due date, Tenant shall pay a late charge equal to [Percentage]% of the overdue amount to cover administrative costs associated with processing the delinquency.

Section 3.4. Security Deposit

Upon execution of this Lease, Tenant shall deposit with Landlord the Security Deposit. Landlord may hold the Security Deposit without liability for interest and may apply all or part of it to cure any Default by Tenant. If Landlord applies any portion of the Security Deposit, Tenant shall replenish the fund to its original amount within ten (10) business days of written demand.

Section 3.5. Permitted Use and Compliance

1. Use: The Premises shall be used exclusively for [Permitted Commercial Use] and for no other purpose without the prior written consent of Landlord.
2. Compliance with Laws: Tenant shall, at its sole cost and expense, promptly comply with all applicable local, state, and federal laws, ordinances, rules, regulations, and orders of any governmental authority having jurisdiction over the Premises.

Section 3.6. Maintenance, Repairs, and Alterations

1. Landlord Obligations: Landlord shall maintain and repair the structural elements, foundation, exterior walls, roof, and core mechanical systems of the Building in good working order.
2. Tenant Obligations: Tenant shall, at its sole expense, maintain the interior of the Premises in a clean, safe, and sanitary condition, performing all routine interior repairs necessary to maintain the Premises in the condition existing as of the Commencement Date, normal wear and tear excepted.
3. Alterations: Tenant shall not make any structural alterations, additions, or improvements to the Premises without obtaining Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed.

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4. Default, Termination, and Remedies

Section 4.1. Events of Default

The occurrence of any of the following shall constitute a material "Event of Default" by Tenant under this Lease:

1. Failure by Tenant to pay Base Rent, Additional Rent, or any other monetary obligation within [Number] days after the same is due;
2. Failure by Tenant to observe or perform any other non-monetary covenant, condition, or agreement contained in this Lease within thirty (30) business days after written notice from Landlord specifying the nature of the failure;
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.

Section 4.2. Notice and Cure Periods

Except for monetary defaults where the cure period is explicitly defined herein as [Number] days, the defaulting Party shall have thirty (30) business days from the receipt of written notice detailing the specific default to cure the same before the non-defaulting Party may exercise legal remedies. If a non-monetary default cannot reasonably be cured within thirty (30) business days, the cure period shall be extended so long as the defaulting Party commences curing promptly and diligently pursues the cure to completion.

Section 4.3. Remedies of Landlord

Upon the occurrence of an Event of Default by Tenant, Landlord shall have the right, at its sole election, to pursue any one or more of the following remedies without further notice or demand:

1. Terminate this Lease and Tenant’s right to possession of the Premises, recover all damages proximately caused by Tenant's breach, and re-enter and take possession of the Premises;
2. Enforce the provisions of this Lease and recover rent and other monetary charges as they become due, without terminating the Lease;
3. Accelerate and declare the entire remaining balance of Base Rent and Additional Rent for the balance of the Term immediately due and payable;
4. Exercise any other legal or equitable right or remedy available to Landlord under the laws of the State of [Jurisdiction].

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5. Boilerplate Legal Provisions

Section 5.1. Severability

If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid and enforceable, and the remaining provisions shall remain in full force and effect.

Section 5.2. Entire Agreement

This Agreement, including all attached exhibits and addenda, 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.

Section 5.3. Force Majeure

Neither Party shall be held liable or responsible to the other for any failure or delay in fulfilling or performing any term of this Lease when such failure or delay is caused by acts of God, flood, fire, war, public utility failure, acts of terrorism, governmental embargo, pandemic, or any other extraordinary event beyond the reasonable control of the affected Party, provided that the affected Party gives prompt written notice to the other Party.

Section 5.4. Governing Law and Venue

This Agreement shall be construed, interpreted, and governed by the laws of the State of [Jurisdiction], without regard to its conflict of laws principles. Any legal action, proceeding, or arbitration arising out of this Lease shall be brought exclusively in the state or federal courts located within [County Name], [Jurisdiction], and the Parties hereby consent to the personal jurisdiction of such courts.

Section 5.5. Dispute Resolution

Any dispute, controversy, or claim arising out of or relating to this contract, including its formation or breach, shall be settled by binding arbitration administered by the American Arbitration Association (AAA) in accordance with its Commercial Arbitration Rules. The place of arbitration shall be [City, State], and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

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6. Formal Execution Block

IN WITNESS WHEREOF, the Parties hereto have caused this Commercial Lease Agreement to be duly executed by their respective authorized officers or representatives as of the Effective Date first written above.

LANDLORD:

[Landlord Entity Name]

By: _________________________________________
Name: [Signatory Name]
Title: [Signatory Title]
Date: [Date]

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TENANT:

[Tenant Entity Name]

By: _________________________________________
Name: [Signatory Name]
Title: [Signatory Title]
Date: [Date]