Alabama commercial lease agreement template

Alabama Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and effective as of [Date], by and between [Landlord Name], whose address is [Landlord Address] ("Landlord"), and [Tenant Name], whose address is [Tenant Address] ("Tenant").

• Landlord Entity Type: [Landlord Entity Type, e.g., Individual, LLC, Corporation]
• Tenant Entity Type: [Tenant Entity Type, e.g., Individual, LLC, Corporation]

1. Leased Premises

Landlord leases to Tenant, and Tenant leases from Landlord, the following described premises (the "Premises"):

• [Street Address], [Suite/Unit Number], [City], Alabama [Zip Code]
• Legal Description: [Legal Description of Property]
• Square Footage: [Square Footage of Leased Premises]
• Permitted Use: [Specific Description of Permitted Use]
• Common Areas: [Description of Common Areas, if any]
• Parking: [Description of Parking Spaces and Rules, if any]

2. Lease Term

The term of this Lease shall commence on [Commencement Date] (the "Commencement Date") and shall expire on [Expiration Date] (the "Expiration Date"), unless sooner terminated as provided herein.

• Option A: Fixed Term Lease
  • The Lease shall be for a fixed term as stated above.
• Option B: Renewal Options
  • Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration of Renewal Term] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the Expiration Date.
    • Renewal Term Rent: [Description of Rent for Renewal Term, e.g., Fair Market Value, Specified Increase]
• Option C: Early Termination
  • Tenant shall have the right to terminate this Lease early by providing [Number] days written notice to Landlord and paying a termination fee of [Termination Fee Amount].
  • Early termination fee does NOT apply when early termination is required due to casualty event (see Clause 13).
• Option D: Holdover
  • If Tenant remains in possession of the Premises after the Expiration Date without a written agreement extending the Lease, such holdover shall be deemed a month-to-month tenancy, terminable by either party upon [Number] days written notice. Rent during the holdover period shall be [Percentage or Amount]% of the rent in effect during the last month of the Lease term.
  • If Tenant remains in possession of the Premises after the Expiration Date without a written agreement extending the Lease, Landlord reserves the right to charge Tenant, and Tenant agrees to pay, double (2x) the then-existing monthly rent, prorated daily for the period of time holdover occurs.

3. Rent

Tenant shall pay Landlord rent as follows:

• Base Rent: [Base Rent Amount] per [Frequency, e.g., month], payable in advance on the [Day] of each [Frequency, e.g., month].
• Payment Method: [Payment Method, e.g., Check, Electronic Transfer] to [Payment Address].

• Option A: Escalation Clause
  • Annual Increase: The Base Rent shall increase annually by [Percentage]%, effective on each anniversary of the Commencement Date.
  • CPI Adjustment: The Base Rent shall be adjusted annually based on the Consumer Price Index (CPI) for [CPI Area], with adjustments made on each anniversary of the Commencement Date.
  • Step-Up Rent: The Base Rent shall increase as follows:
    • Year [Number]: [Rent Amount]
    • Year [Number]: [Rent Amount]
• Option B: Rent Abatement
  • Tenant shall receive a rent abatement for the period from [Start Date] to [End Date].
• Option C: Late Payment
  • If rent is not received by Landlord within [Number] days of the due date, a late fee of [Late Fee Amount or Percentage]% shall be due. Interest shall accrue on all past due amounts at the rate of [Interest Rate]% per annum.

4. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount], to be held by Landlord as security for the performance of Tenant's obligations under this Lease.

• Permitted Use: The security deposit may be used to cover damages to the Premises caused by Tenant, unpaid rent, or other breaches of this Lease.
• Return of Deposit: Landlord shall return the security deposit, less any deductions, within [Number] days after the termination of this Lease and Tenant's surrender of the Premises in the condition required by this Lease.
• Interest: Landlord [Shall/Shall Not] pay interest on the security deposit.
• Alabama Statutory Compliance: Landlord agrees to comply with all applicable Alabama statutes regarding the holding and return of security deposits.

5. Use of Premises

Tenant shall use the Premises only for the Permitted Use specified in Section 1 and for no other purpose.

• Use Restrictions: [Specify any restrictions on Tenant's use of the Premises]
• Business Licensing: Tenant shall obtain all necessary business licenses and permits required to operate its business in the Premises.
• Zoning Compliance: Tenant shall comply with all applicable zoning laws and regulations.
• No nuisance or illegal activity is allowed on premises.

6. Maintenance and Repairs

The parties shall be responsible for maintenance and repairs as follows:

• Landlord Responsibilities:
  • [HVAC]: [Landlord/Tenant] is responsible for maintenance and repair of the HVAC system.
  • [Plumbing]: [Landlord/Tenant] is responsible for maintenance and repair of plumbing.
  • [Roof]: Landlord is responsible for maintaining the roof.
  • [Structure]: Landlord is responsible for maintaining the structural integrity of the building.
  • [Landscaping]: Landlord is responsible for maintaining landscaping.
  • [Common Areas]: Landlord is responsible for maintaining common areas.
• Tenant Responsibilities:
  • Tenant shall maintain the Premises in a clean and safe condition.
  • Tenant shall be responsible for any damage to the Premises caused by Tenant's negligence or misuse.
  • All routine maintenance will be the responsibility of Tenant (lightbulbs, consumables, etc.)
• Maintenance Schedule: [Specify any scheduled maintenance activities and frequency]
• Direct vs. Reimbursement: Maintenance costs shall be [Directly Paid/Reimbursed] by [Landlord/Tenant] through [Additional Rent/CAM Fees].

7. Utilities and Services

The parties shall be responsible for utilities and services as follows:

• Electricity: [Landlord/Tenant] shall pay for electricity.
• Water: [Landlord/Tenant] shall pay for water.
• Sewer: [Landlord/Tenant] shall pay for sewer.
• Trash: [Landlord/Tenant] shall pay for trash removal.
• Internet: [Landlord/Tenant] shall pay for internet service.
• Janitorial: [Landlord/Tenant] shall be responsible for janitorial services.
• Snow Removal: [Landlord/Tenant] shall be responsible for snow removal.
• Landscaping: [Landlord/Tenant] shall be responsible for landscaping.

• Metering: Utilities are [Separately Metered/Shared].
• Prorated cost of shared utilities will be fairly distributed based on percentage of total square footage occupied by Tenant.

8. Taxes and Insurance

• Property Taxes: [Landlord/Tenant] shall pay property taxes.
  • If Tenant, the Tenant shall [Pay Directly/Reimburse Landlord].
• Business/Sales Taxes: Tenant shall be responsible for all business and sales taxes related to its operations.
• Liability Insurance: Tenant shall maintain commercial general liability insurance with minimum coverage of [Coverage Amount] per occurrence.
• Property Insurance: Landlord shall maintain property insurance.
• Named Insureds: [Specify Named Insureds]
• Deductibles: [Specify Deductible Amounts]
• Waiver of Subrogation: To the extent permitted by law, both parties waive any right of subrogation against the other.

9. Common Area Maintenance (CAM) Charges

• Applicability: This section applies only if the Premises are part of a multi-tenant property.
• Calculation Method: CAM charges shall be calculated based on Tenant's proportionate share of the total leasable area of the property.
• Included Items: CAM charges shall include, but not be limited to, maintenance, repair, and management of common areas, landscaping, snow removal, and security.
• Estimated Costs: Landlord estimates annual CAM charges to be [Estimated Amount].
• Reconciliation: Landlord shall provide Tenant with an annual reconciliation of CAM charges.
• Tenant Audit Rights: Tenant shall have the right to audit Landlord's CAM charge records upon reasonable notice.
• Pass-Throughs/Caps: [Specify any pass-throughs of expenses or caps on increases]

10. Tenant Improvements

• Allowance: Landlord shall provide Tenant with a tenant improvement allowance of [Allowance Amount].
• Permitted Alterations: Tenant may make alterations to the Premises with Landlord's prior written consent, which shall not be unreasonably withheld.
• Landlord Approval: All plans and specifications for alterations must be approved by Landlord.
• Restoration: At the end of the Lease term, Tenant shall [Restore/Not Restore] the Premises to its original condition.
• Fixtures: Fixtures installed by Tenant shall [Become Landlord's Property/Remain Tenant's Property].
• Signage shall be installed at the sole discretion of Landlord.

11. Subletting and Assignment

• Permission: Tenant [May/May Not] sublet the Premises or assign this Lease.
• Landlord Approval: If subletting or assignment is permitted, Landlord's prior written consent is required, which shall not be unreasonably withheld.
• Conditions: [Specify any conditions for subletting or assignment, such as financial qualifications of the subtenant/assignee]
• Processing Fees: Tenant shall pay Landlord a processing fee of [Fee Amount] for any proposed subletting or assignment.
• Alabama Law: Subletting and assignment shall comply with applicable Alabama law.

12. Landlord's Entry

Landlord shall have the right to enter the Premises upon [Number] hours' prior notice for purposes of inspection, repairs, or showing to prospective tenants or buyers.

• Emergency Exception: Landlord may enter the Premises without notice in case of emergency.
• Alabama Minimum Notice: Landlord shall comply with any applicable Alabama statutes regarding notice of entry.

13. Default and Remedies

• Events of Default: The following shall constitute events of default by Tenant:
  • Failure to pay rent when due.
  • Breach of any other material provision of this Lease.
  • Abandonment of the Premises.
  • Insolvency or bankruptcy of Tenant.
• Notice and Cure: Landlord shall provide Tenant with written notice of any default and a cure period of [Number] days for monetary defaults and [Number] days for non-monetary defaults.
• Landlord Remedies: Upon Tenant's default, Landlord may:
  • Terminate this Lease and evict Tenant.
  • Re-enter and relet the Premises.
  • Recover damages, including unpaid rent, costs of reletting, and attorney's fees.
• Tenant Remedies: Upon Landlord's default, Tenant may:
  • Terminate this Lease.
  • Seek injunctive relief or damages.
• Alabama Law: All remedies shall be exercised in accordance with Alabama law.

14. Indemnity and Liability

• Indemnification: Tenant shall indemnify and hold Landlord harmless from any claims, damages, or liabilities arising from Tenant's use of the Premises.
• Waiver of Subrogation: To the extent permitted by law, both parties waive any right of subrogation against the other.
• Alabama Law: This clause shall be interpreted in accordance with Alabama law.

15. Environmental Compliance

• Hazardous Materials: Tenant shall not store or use any hazardous materials on the Premises without Landlord's prior written consent.
• Mold: Tenant shall notify Landlord immediately of any suspected mold growth on the Premises.
• Compliance: Tenant shall comply with all applicable federal, state, and local environmental regulations.

16. Casualty and Condemnation

• Casualty: If the Premises are damaged or destroyed by fire or other casualty, rent shall abate during the period of restoration.
  • Termination: If the Premises are substantially damaged, either party may terminate this Lease.
• Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate.
  • Allocation of Award: [Specify how condemnation award will be allocated]

17. Signage

• Landlord Control: Landlord shall have control over all exterior and interior signage.
• Approval: Tenant shall obtain Landlord's prior written approval of all signage.
• Removal: At the end of the Lease term, Tenant shall remove all signage and restore the Premises to its original condition.
• Location: Signage size, style and placement to be approved by Landlord.

18. Americans with Disabilities Act (ADA)

• Allocation: The parties shall allocate responsibility for ADA compliance as follows: [Specify allocation of responsibilities]
• Modifications: [Specify responsibilities for ADA modifications]

19. Governing Law and Dispute Resolution

• Governing Law: This Lease shall be governed by the laws of the State of Alabama.
• Dispute Resolution:
  • Option A: Mediation
    • Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City, Alabama].
  • Option B: Arbitration
    • Any dispute arising out of or relating to this Lease shall be resolved through binding arbitration in [City, Alabama].
  • Option C: Litigation
    • Any dispute arising out of or relating to this Lease shall be resolved in the state or federal courts located in [County, Alabama].
• Venue: [Specify Venue]
• Jury Trial Waiver: [Landlord and Tenant waive/Landlord and Tenant do not waive] their right to a jury trial.

20. Notices

All notices under this Lease shall be in writing and shall be deemed given when delivered personally, sent by certified mail, return receipt requested, or sent by email (with confirmation of receipt) to the following addresses:

• Landlord:
  • Address: [Landlord Address]
  • Email: [Landlord Email]
• Tenant:
  • Address: [Tenant Address]
  • Email: [Tenant Email]

21. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to acts of God, war, strikes, or other events beyond its reasonable control.

• Casualty Included: This includes casualty events.

22. Personal Guarantee

• Guarantor: [Guarantor Name], residing at [Guarantor Address], hereby guarantees the performance of Tenant's obligations under this Lease.
• Scope: The guarantee shall be [Limited/Unlimited] in scope.
• Liability Limitation: [Specify any limitations on guarantor's liability]

23. Estoppel Certificate and SNDA

• Requirement: Tenant shall execute and deliver to Landlord an estoppel certificate within [Number] days of Landlord's request.
• Subordination: This Lease shall be subordinate to any existing or future mortgages or deeds of trust on the property.
• Non-Disturbance: Landlord shall use commercially reasonable efforts to obtain a non-disturbance agreement from any mortgagee.
• Attornment: Tenant agrees to attorn to any successor landlord.

24. Surrender

Tenant shall surrender the Premises at the end of the Lease term in the condition required by this Lease, broom clean and free of all personal property.

• All improvements completed on the property by Tenant will remain on premises after Lease is terminated
• Any personal property not removed from the premises after Lease termination will be disposed of at the sole discretion of Landlord.
• Tenant will be responsible for Landlord's costs to return premises to the condition required by this Lease.

25. Special Alabama Provisions

• Notice and Eviction: Landlord shall comply with all applicable Alabama statutes regarding notice of eviction.

26. Marijuana and Smoke-Free Policy

• Marijuana: The use, sale, or cultivation of marijuana is [Permitted/Prohibited] on the Premises.
• Smoke-Free: The Premises are [Smoke-Free/Smoking Permitted in Designated Areas].

27. Exhibits

The following exhibits are attached to and incorporated into this Lease:

• Exhibit A: Floor Plan of Premises [Attached/Not Attached]
• Exhibit B: Insurance Certificate [Attached/Not Attached]
• Exhibit C: Rules and Regulations [Attached/Not Attached]
• Exhibit D: Guaranty Form [Attached/Not Attached]

IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above.

____________________________
[Landlord Name] (Landlord)

____________________________
Date

____________________________
[Tenant Name] (Tenant)

____________________________
Date

____________________________
[Guarantor Name] (Guarantor, if applicable)

____________________________
Date

(Notary Acknowledgment, if required by Alabama Law)