Free Real Estate Percentage Shopping Center Lease Agreement Template
Real Estate Percentage Shopping
Center Lease Agreement
This Real Estate Percentage Shopping Center Lease Agreement (hereinafter referred to as the "Agreement") is made and entered into this [Date], by and between [Your Company Name], a [State] corporation, with its principal place of business located at [Your Company Address], (hereinafter referred to as the "Landlord"), and [Tenant Name], a [State] corporation, with its principal place of business located at [Tenant Address], (hereinafter referred to as the "Tenant").
WHEREAS, the Landlord is the owner of that certain shopping center located at [Shopping Center Address], [City], [State], described more fully herein (the "Shopping Center"); and
WHEREAS, the Tenant desires to lease from the Landlord certain premises within the Shopping Center, as more specifically described in this Agreement, for the purpose of operating a [Type of Business] business, and the Landlord desires to lease said premises to the Tenant under the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
I. Lease Term
A. Commencement and Duration: This Lease shall commence on [Start Date], and shall continue for a term of 5 years, ending on [End Date], unless sooner terminated pursuant to any provision hereof.
B. Renewal Option: The Tenant shall have the option to renew this Lease for two additional consecutive terms of 5 years each, provided the Tenant gives the Landlord written notice of its intention to renew at least 180 days prior to the end of the then-current lease term.
II. Premises Description
A. Location: The leased premises (the "Premises") are located at [Specific Location within Shopping Center], encompassing approximately [Square Footage] square feet of retail space.
B. Condition of Premises: The Landlord shall deliver the Premises to the Tenant in a clean, orderly, and good operating condition on or before the Lease commencement date. The Tenant accepts the Premises "as is," except for any structural repairs for which the Landlord is responsible under this Agreement.
III. Use of Premises
A. Permitted Use: The Premises shall be used solely for the purpose of operating a [Type of Business] and for no other purpose without the prior written consent of the Landlord.
B. Compliance: The Tenant agrees to comply with all applicable laws, ordinances, rules, and regulations pertaining to the use, condition, and occupancy of the Premises, including obtaining any necessary licenses or permits.
C. Prohibited Uses: The Tenant shall not use or allow the Premises to be used for any unlawful purpose. Furthermore, the Tenant shall not conduct or permit any activities that could damage the reputation or integrity of the Shopping Center or disturb the comfort and enjoyment of other tenants or visitors.
IV. Base Rent
A. Monthly Base Rent: The Tenant agrees to pay a monthly base rent of $5,000, due on the first day of each month, beginning [Start Date].
B. Late Payment: A late fee of $250 will be applied to rent payments received after the fifth day of the month.
V. Percentage Rent
A. Sales Threshold: In addition to the base rent, the Tenant agrees to pay 5% of gross sales exceeding $50,000 per month as percentage rent.
B. Reporting and Payment: The Tenant shall report monthly sales to the Landlord by the 10th day of the following month and pay any percentage rent due at that time.
VI. Utilities and Services
A. Landlord’s Responsibility: The Landlord is responsible for providing and maintaining the shopping center’s common areas, including lighting, heating, and air conditioning in those areas, as well as exterior maintenance and landscaping.
B. Tenant’s Responsibility: The Tenant is responsible for all utilities and services for the Premises, including electricity, water, gas, telephone, and internet services. The Tenant shall set up accounts with the respective utility companies prior to the lease commencement date.
VII. Maintenance and Repairs
A. Tenant’s Responsibilities:
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Interior Maintenance: The Tenant is responsible for the interior maintenance and repairs of the Premises, including fixtures, equipment, and systems installed by the Tenant.
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Damage Repair: The Tenant must promptly repair any damage to the Premises caused by the Tenant’s operations, employees, or guests.
B. Landlord’s Responsibilities:
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Structural Repairs: The Landlord is responsible for structural repairs to the Premises, excluding damages caused by the Tenant’s negligence or willful conduct.
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Common Area Maintenance: The Landlord shall maintain the shopping center’s common areas in a clean, safe, and attractive condition.
VIII. Improvements and Alterations
A. Tenant's Alterations: The Tenant may make alterations, additions, or improvements to the Premises with the prior written consent of the Landlord, which shall not be unreasonably withheld. All improvements shall become the property of the Landlord upon installation and shall remain with the Premises upon the expiration or earlier termination of this Agreement.
B. Restoration: If required by the Landlord at the time consent is given for any alterations, the Tenant shall, at the Tenant's expense, remove any such alterations and restore the Premises to its original condition upon the termination of the lease.
IX. Insurance and Liability
A. Tenant's Insurance: The Tenant shall maintain at their own expense a comprehensive general liability insurance policy with a minimum coverage of $1,000,000 per occurrence and property insurance covering the full replacement cost of all improvements and personal property in the Premises.
B. Landlord's Insurance: The Landlord shall maintain insurance on the Shopping Center's structure and common areas, excluding coverage for the Tenant's personal property and improvements.
X. Indemnification
The Tenant agrees to indemnify, defend, and hold harmless the Landlord from and against any and all claims, liabilities, damages, costs, and expenses, including reasonable attorneys' fees, arising from the Tenant's use of the Premises, any act, omission, or negligence of the Tenant, their employees, contractors, agents, or visitors, and any breach of this Agreement by the Tenant.
XI. Signage
A. Consent Required: The Tenant may install signage on the Premises subject to the Landlord's prior written consent, which shall not be unreasonably withheld. All signage must comply with the Shopping Center's design criteria and applicable zoning and sign ordinances.
B. Maintenance and Removal: The Tenant is responsible for the maintenance of their signage in a condition acceptable to the Landlord. Upon lease termination, the Tenant shall remove their signage and repair any damage caused by the installation or removal.
XII. Default and Remedies
A. Events of Default: An event of default occurs if the Tenant fails to pay rent or any other payment required herein within 10 days after the due date, breaches any provision of this Agreement, or becomes insolvent.
B. Landlord's Remedies: Upon default, the Landlord may exercise any one or more of the following remedies: (1) terminate this Agreement and recover from the Tenant all damages incurred, (2) enter and take possession of the Premises without terminating this Agreement, or (3) pursue any other remedy allowed by law.
XIII. Termination
A. Notice of Termination: Either party may terminate this Agreement upon 90 days written notice prior to the end of the initial term or any renewal term.
B. Obligations Upon Termination: Upon termination, the Tenant shall vacate the Premises, remove all personal property, and return the Premises to the Landlord in the same condition as at the commencement of the lease, reasonable wear and tear excepted.
XIV. Option to Renew
A. Renewal Term: The Tenant shall have the option to renew this Agreement for an additional term of 5 years, under the same terms and conditions, subject to negotiation of the base rent for the renewal term.
B. Exercise of Option: To exercise this option to renew, the Tenant must provide written notice to the Landlord no less than 180 days before the end of the initial term.
XV. Miscellaneous Provisions
A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state in which the Premises is located.
B. Amendments: Any amendment to this Agreement must be in writing and signed by both parties.
C. Notices: All notices under this Agreement shall be delivered in writing and shall be deemed duly given if sent by certified mail, return receipt requested, or delivered in person to the parties' last known address.
D. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings, agreements, negotiations, and discussions, whether oral or written, between the parties.
Signatures
By signing below, both the Landlord and the Tenant agree to all the terms and conditions outlined in this Real Estate Percentage Shopping Center Lease Agreement.
Landlord
[Name]
[Date]
Tenant
[Name]
[Date]
