Alabama retail lease agreement template

Alabama Retail Lease Agreement

This Alabama Retail Lease Agreement (the "Agreement") is made and entered into as of this [Date of Signing], by and between:

[Landlord Legal Name], whose address is [Landlord Address] and whose contact information is [Landlord Phone Number] and [Landlord Email Address] (hereinafter referred to as "Landlord"), and

[Tenant Legal Name], whose address is [Tenant Address] and whose contact information is [Tenant Phone Number] and [Tenant Email Address] (hereinafter referred to as "Tenant").

WHEREAS, Landlord owns certain real property located in the State of Alabama; and

WHEREAS, Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, a portion of such real property for the operation of a retail business;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

Premises:

Option A: The Landlord leases to the Tenant and the Tenant leases from the Landlord that certain retail space located at [Property Address], legally described as [Legal Description per Alabama County Records] and further described as [Detailed Space Description, e.g., Unit A, 1,500 square feet, as shown on Exhibit A (Floor Plan)] (the "Premises"). The Premises includes approximately [Square Footage] square feet.

Option B: The Landlord leases to the Tenant and the Tenant leases from the Landlord multiple retail spaces located at [Property Address], specifically Units [Unit Numbers], legally described as [Legal Description per Alabama County Records] and further described as [Detailed Space Description of Each Unit] (the "Premises"). The Premises includes approximately [Total Square Footage] square feet combined.

Access:

Option A: Tenant shall have the right to use, in common with other tenants and occupants of the Property, the common areas, including parking areas (including [Number] customer parking spaces, [Number] employee parking spaces, and ADA-compliant spaces), walkways, and loading docks (if any).

Option B: Tenant shall have exclusive access to [Specify Exclusive Access, e.g., a designated loading dock]. Tenant shall also have the right to use, in common with other tenants and occupants of the Property, the common areas, including parking areas (including [Number] customer parking spaces, [Number] employee parking spaces, and ADA-compliant spaces), walkways, and other common facilities.

Option C: Customer access shall be permitted during normal business hours. Deliveries shall be permitted [Specify Delivery Schedule and Access Points].

Permitted Use:

Option A: The Premises shall be used solely for the purpose of operating a [Type of Retail Business] business, and for no other purpose.

Option B: The Premises shall be used solely for the purpose of operating a [Type of Retail Business] business, including the sale of [Specific Goods/Services].

Tenant shall comply with all applicable zoning ordinances and regulations, including those found in the [City/County] Code, and shall obtain all necessary licenses and permits required by the State of Alabama and the local municipality. Prohibited uses include [Specify Prohibited Uses].

Compliance with Laws:

Tenant shall comply with all federal, state (including Alabama business licensing regulations and sales tax permit requirements), and local laws, ordinances, rules, and regulations applicable to the operation of its business within the Premises, including but not limited to the Americans with Disabilities Act (ADA), health codes, and fire safety regulations. Tenant shall maintain all required licenses and permits, including a valid Alabama retail sales tax permit, and shall provide copies to Landlord upon request. Tenant shall also comply with all applicable Alabama signage ordinances.

Term:

Option A: The term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date] (the "Term").

Option B: The term of this Lease shall be for a period of [Number] years, commencing on [Commencement Date].

Renewal:

Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the then-current Term. The rental rate for the renewal term shall be [Specify Renewal Rent Calculation, e.g., fair market value].

Option B: Tenant shall have a right of first refusal to lease any adjacent space that becomes available during the Term of this Lease. Landlord shall provide Tenant with written notice of the availability of such space and the terms of the proposed lease. Tenant shall have [Number] days to accept or reject such offer.

Rent:

Option A: Tenant shall pay Landlord base rent in the amount of [Dollar Amount] per month, payable in advance on the first day of each month, commencing on [Rent Commencement Date].

Option B: Tenant shall pay Landlord base rent in the amount of [Dollar Amount] per year, payable in equal monthly installments of [Dollar Amount], in advance on the first day of each month, commencing on [Rent Commencement Date].

Option C: In addition to base rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Tenant’s gross sales exceeding [Dollar Amount] per [Month/Year]. Tenant shall provide Landlord with monthly/annual sales reports.

The base rent shall increase by [Percentage]% annually/every [Number] years, beginning on [Date]. Rent shall be paid to [Payee Name] at [Place of Payment] by [Payment Method, e.g., check, electronic transfer].

Security Deposit:

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant’s obligations under this Lease. Landlord may use the security deposit to cover any damages to the Premises caused by Tenant, or any unpaid rent or other amounts owed by Tenant under this Lease, subject to Alabama law. The security deposit, or any remaining portion thereof, shall be returned to Tenant within [Number] days after the expiration or termination of this Lease, provided that Tenant has fully complied with all of its obligations hereunder.

Late Fees:

If Tenant fails to pay any rent or other amount due under this Lease within [Number] days after the due date, Tenant shall pay Landlord a late fee of [Dollar Amount or Percentage], subject to the maximum amount allowable under Alabama law.

Additional Financial Obligations:

Tenant shall pay its pro rata share of common area maintenance (CAM) costs, which shall include, but not be limited to, costs for cleaning, landscaping, security, and maintenance of common areas. Tenant’s pro rata share shall be [Percentage]% of the total CAM costs. Landlord shall provide Tenant with an itemized statement of CAM costs on a [Monthly/Quarterly/Annual] basis.

Tenant shall also be responsible for paying its pro rata share of property taxes assessed against the Property. Landlord shall furnish Tenant with copies of the tax bills. Tenant’s pro rata share is [Percentage]% of the total property taxes. Tenant has the right to contest property tax assessments under Alabama law.

Tenant shall be responsible for all utility charges for the Premises, including electricity, gas, water, and sewer. Each utility shall be separately metered/sub-metered and billed directly to Tenant.

Repairs and Maintenance:

Option A: Landlord shall be responsible for maintaining the roof, foundation, and exterior walls of the Premises, as well as the common areas. Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures, equipment, and improvements installed by Tenant, and keeping the premises in a clean and sanitary condition.

Option B: Landlord shall be responsible for major repairs and replacements to the HVAC, plumbing, and electrical systems. Tenant shall be responsible for routine maintenance and repairs to these systems within the Premises.

All repairs shall be performed in a timely manner and in accordance with all applicable building codes and regulations.

Tenant Improvements:

Tenant shall be responsible for any tenant improvements (TI) or build-out required to prepare the Premises for its intended use. Tenant shall submit detailed plans and specifications for all TI work to Landlord for approval, which shall not be unreasonably withheld. All TI work shall be performed by licensed contractors in accordance with all applicable building codes and regulations, including Alabama law. Tenant shall obtain all necessary permits and shall provide Landlord with lien waivers upon completion of the work. Landlord may contribute [Dollar Amount] towards the TI costs.

Signage:

Tenant shall have the right to install signage on the Premises, subject to Landlord’s prior written approval and compliance with all applicable laws, ordinances, and regulations, including Alabama Department of Transportation (ALDOT) regulations and local sign codes. All signage must be professionally installed and maintained. Tenant is responsible for obtaining the necessary permits. Landlord approval shall not be unreasonably withheld.

Hours of Operation:

Tenant shall operate its business during the following hours: [Specify Hours of Operation]. Tenant shall maintain continuous operation of its business during these hours, except for reasonable closures for holidays and emergencies. Tenant will close on the following Alabama holidays: [Specify Holidays].

Subletting and Assignment:

Tenant shall not sublet the Premises or assign this Lease without Landlord’s prior written consent, which shall not be unreasonably withheld. Any sublease or assignment shall be subject to the terms and conditions of this Lease and Alabama sublease law. Landlord's consent is not required for transfer to an affiliated entity.

Insurance:

Tenant shall maintain general liability insurance with minimum coverage of [Dollar Amount] per occurrence and property insurance covering the full replacement cost of Tenant’s personal property and improvements within the Premises. Landlord shall be named as an additional insured on the general liability policy. Tenant shall also maintain worker’s compensation insurance as required by Alabama law. Tenant shall provide Landlord with certificates of insurance evidencing such coverage.

Damage and Destruction:

If the Premises are damaged or destroyed by fire or other casualty, this Lease shall terminate unless Landlord elects to restore the Premises. If Landlord elects to restore the Premises, rent shall abate during the period of restoration. If the Premises are rendered untenantable by a force majeure event, rent shall abate during the period of untenantability. If the Premises are taken by eminent domain, as defined by Alabama Code § 18-1A-271 et seq., this lease shall terminate.

Possession and Delivery:

Landlord shall deliver possession of the Premises to Tenant on [Date] in [Specify Condition, e.g., turnkey condition, as-is condition]. The parties shall conduct a walk-through of the Premises prior to Tenant’s occupancy and prepare a punch list of any items to be addressed.

Landlord Access:

Landlord shall have the right to enter the Premises upon reasonable notice (except in emergencies) for the purpose of inspection, maintenance, and repairs, or to show the Premises to prospective tenants or purchasers. Landlord shall provide Tenant with at least [Number] hours' notice prior to entry, except in cases of emergency, as defined by Alabama Code.

Default:

The occurrence of any of the following events shall constitute a default by Tenant: (a) failure to pay rent or other amounts due under this Lease within [Number] days after the due date; (b) abandonment of the Premises; (c) violation of any of the other terms or conditions of this Lease. Landlord's remedies include re-entry and lockout, in accordance with Alabama state law, and the right to collect rent and accelerate payments.

Remedies:

Upon the occurrence of a default by Tenant, Landlord shall have the right to pursue all remedies available under Alabama law, including, but not limited to, termination of this Lease, eviction of Tenant, and recovery of all damages, including unpaid rent, late fees, and attorney’s fees (if permitted by Alabama law). Tenant shall have [Number] days to cure any default after written notice from Landlord.

Shopping Center Association Rules:

If the Premises are located within a shopping center, Tenant shall comply with all rules and regulations of the shopping center association.

Environmental Compliance:

Tenant shall comply with all applicable environmental laws and regulations, including those of the Alabama Department of Environmental Management (ADEM). Tenant shall not store, use, or dispose of any hazardous substances on the Premises without Landlord’s prior written consent.

Indemnification:

Tenant shall indemnify and hold Landlord harmless from and against any and all claims, losses, damages, liabilities, and expenses arising out of or relating to Tenant’s use of the Premises or Tenant’s breach of this Lease.

ADA Compliance:

Tenant shall be responsible for complying with all requirements of the Americans with Disabilities Act (ADA) relating to the Premises and Tenant’s business operations.

Licenses and Permits:

Tenant shall maintain all necessary business licenses, Alabama retail tax collection permits, and other permits required for the operation of its business.

Data and Privacy Protection:

If Tenant collects consumer data in the course of its retail business, Tenant shall comply with all applicable data protection and privacy laws.

Governing Law:

This Lease shall be governed by and construed in accordance with the laws of the State of Alabama.

Venue:

Any legal action or proceeding arising out of or relating to this Lease shall be brought in the state or federal courts located in [County Name] County, Alabama.

Notices:

All notices required or permitted under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by a nationally recognized overnight courier service, to the addresses set forth above.

Entire Agreement:

This Lease constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

Amendment:

This Lease may be amended only by a writing signed by both parties.

Severability:

If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

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

[Landlord Legal Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

[Tenant Legal Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]