Arizona commercial lease agreement template

Arizona Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and effective as of this [Date] by and between:

Landlord (Lessor): [Landlord's Full Legal Name], residing/located at [Landlord's Address], a [Landlord's Entity Type, e.g., Individual, LLC, Corporation], represented by [Landlord's Representative's Name, if applicable], whose contact information is [Landlord's Phone Number] and [Landlord's Email Address].

Tenant (Lessee): [Tenant's Full Legal Name], residing/located at [Tenant's Address], a [Tenant's Entity Type, e.g., Individual, LLC, Corporation], represented by [Tenant's Representative's Name, if applicable], whose contact information is [Tenant's Phone Number] and [Tenant's Email Address].

Leased Premises

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

Legal Address: [Full Street Address, City, State, Zip Code]

Suite/Unit Number: [Suite/Unit Number, if applicable]

Square Footage: [Square Footage]

Boundaries: [Detailed description of premises boundaries]

Permissible Use:

• Option A: Retail
• Option B: Office
• Option C: Industrial
• Option D: Mixed-Use
• Option E: Other: [Specify Other Use]

Common Areas: [Description of common areas included, e.g., hallways, restrooms, parking]

Parking: [Description of parking spaces included and any associated costs/restrictions]

Lease Term

The term of this Lease shall be:

• Option A: Fixed Term: Commencing on [Start Date] and ending on [End Date].
• Option B: Month-to-Month/Periodic Tenancy: Commencing on [Start Date] and continuing on a [Monthly/Weekly] basis.

• Renewal/Extension:
  • Option A: This Lease shall automatically renew for successive terms of [Number] [Months/Years] unless either party gives written notice of termination at least [Number] days prior to the expiration of the then-current term.
  • Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] [Months/Years] each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the then-current term.
• Early Termination:
  • Option A: Tenant may terminate this Lease prior to the expiration of the term by paying a termination fee equal to [Amount or Formula] and providing [Number] days written notice to Landlord.
  • Option B: Early termination is not permitted under this lease.

Rent

The Tenant shall pay to the Landlord rent as follows:

Base Rent: [Dollar Amount] per [Month/Quarter/Year].

Payment Frequency: [Monthly/Quarterly/Annually].

Payment Method: [e.g., Check, Wire Transfer, Online Payment].

Due Date: Rent shall be due on the [Day] day of each [Month/Quarter].

Escalation Clause:

• Option A: Rent shall increase by [Percentage]% annually, commencing on [Date].
• Option B: Rent shall be adjusted based on the Consumer Price Index (CPI) for [Specific CPI Index] as published by the U.S. Bureau of Labor Statistics.
• Option C: Predefined Rent Steps: Rent shall increase to [Dollar Amount] on [Date] and to [Dollar Amount] on [Date].

Grace Period: Tenant shall have a grace period of [Number] days to pay rent without penalty.

Late Payment Penalty: A late payment penalty of [Dollar Amount] or [Percentage]% of the overdue rent shall be assessed for any rent payment received after the grace period.

Security Deposit

The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount].

• Permitted Uses: The security deposit may be used to cover unpaid rent, damages to the Premises beyond normal wear and tear, and other breaches of this Lease by Tenant.
• Refund Procedure: The Landlord shall return the security deposit, less any deductions permitted under this Lease and Arizona law, within [Number] business days after the Tenant vacates the Premises and delivers possession to the Landlord. An itemized statement of any deductions will be provided to the Tenant.
• Arizona-Specific Requirements: The Landlord is required under Arizona law to provide an itemized list of deductions, if any, from the security deposit. Self-help eviction is prohibited under Arizona law.

Insurance

• Landlord's Insurance: Landlord shall maintain insurance on the Premises, including [Types of Coverage, e.g., property insurance, liability insurance].
• Tenant's Insurance: Tenant shall maintain insurance on its personal property, business operations, and for liability, including [Types of Coverage, e.g., commercial general liability insurance, business interruption insurance], with minimum coverage of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate.
  • Proof of Insurance: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage prior to the commencement of the Lease and upon each renewal of the policy.
  • Additional Insured: Landlord shall be named as an additional insured on Tenant's liability insurance policy.
  • Waiver of Subrogation: Both Landlord and Tenant hereby waive all rights of subrogation against each other.

Utilities and Services

Responsibility for utilities and services shall be allocated as follows:

Landlord's Responsibility:

• [Utility/Service, e.g., Water]
• [Utility/Service, e.g., Trash]

Tenant's Responsibility:

• [Utility/Service, e.g., Electricity]
• [Utility/Service, e.g., Gas]
• [Utility/Service, e.g., Internet]
• [Utility/Service, e.g., HVAC Maintenance]

Maintenance, Repairs, and Alterations

• Landlord's Responsibility:
  • Structural Components: Landlord shall maintain the structural components of the Premises, including the roof, foundation, and exterior walls.
  • Common Areas: Landlord shall maintain the common areas of the property.
• Tenant's Responsibility:
  • Non-Structural Repairs: Tenant shall be responsible for maintaining and repairing all non-structural components of the Premises.
  • Alterations:
    • Option A: Tenant shall not make any alterations to the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld.
    • Option B: Tenant may make alterations to the Premises with Landlord's prior written consent, subject to Landlord’s approval of plans and specifications.
  • Signage:
    • Option A: Tenant shall be permitted to erect signage in accordance with Landlord's signage guidelines and local ordinances.
    • Option B: Tenant is prohibited from erecting any signage without the landlord’s approval.
  • Restoration: At the end of the Lease term, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.

Landlord's Entry: Landlord shall have the right to enter the Premises upon [Number] days' prior written notice to Tenant, except in cases of emergency, in which case no notice is required, in accordance with Arizona law.

Use of Premises

• Permitted Use: The Premises shall be used solely for the Permissible Use described in Section 2 above, and for no other purpose.
• Prohibited Uses: The Tenant shall not use the Premises for any unlawful purpose or any purpose that would violate any applicable laws, regulations, or zoning ordinances.
• Compliance with Laws: Tenant shall comply with all applicable federal, state, and local laws, including environmental, fire safety, and disability access laws (including ADA).
• Subleasing/Assignment:
  • Option A: Tenant shall not sublease the Premises or assign this Lease without Landlord's prior written consent, which consent may be withheld in Landlord's sole discretion.
  • Option B: Tenant may sublease the Premises or assign this Lease with Landlord's prior written consent, which shall not be unreasonably withheld.
  • Option C: Tenant may sublease the Premises or assign this Lease freely, provided Tenant remains liable for all obligations under this Lease.

Representations and Warranties

• Landlord's Representations: Landlord represents and warrants that Landlord has the full right, power, and authority to enter into this Lease and to lease the Premises to Tenant.
• Tenant's Representations: Tenant represents and warrants that Tenant has the full right, power, and authority to enter into this Lease and to conduct its business on the Premises.

Tenant Improvement Allowance (TIA)

• Option A: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.
  • Approval of Plans: Tenant shall submit plans and specifications for any improvements to Landlord for Landlord's approval prior to commencing any work.
  • Disposition of Improvements: At the end of the Lease term, all improvements made to the Premises shall become the property of the Landlord.
• Option B: No tenant improvement allowance shall be provided.

Taxes and Assessments

• Real Property Taxes:
  • Option A: Landlord shall be responsible for the payment of all real property taxes assessed against the Premises.
  • Option B: Tenant shall be responsible for the payment of its pro rata share of all real property taxes assessed against the Premises.
• Special Assessments:
  • Option A: Landlord shall be responsible for the payment of all special assessments levied against the Premises.
  • Option B: Tenant shall be responsible for the payment of its pro rata share of all special assessments levied against the Premises.
• Personal Property Taxes: Tenant shall be responsible for the payment of all personal property taxes assessed against Tenant's personal property located on the Premises.

• Lease Type:
  • Option A: Gross Lease: Landlord pays all operating expenses.
  • Option B: Modified Gross Lease: Tenant pays a portion of operating expenses.
  • Option C: Triple Net (NNN) Lease: Tenant pays base rent plus its pro rata share of real property taxes, property insurance, and common area maintenance (CAM) charges.
    • Operating Expense Reimbursement: Tenant shall reimburse Landlord for its pro rata share of operating expenses, including:
      • Common Area Maintenance (CAM) Charges: [Description of CAM Charges]
      • Property Insurance: [Description of Property Insurance]
      • Repair Prorations: [Description of Repair Prorations]
      • Administrative Fees: [Description of Administrative Fees]

Indemnification

• Tenant's Indemnification: Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorneys' fees) arising out of or relating to Tenant's use of the Premises, Tenant's breach of this Lease, or the negligence or willful misconduct of Tenant or its agents, employees, or invitees.
• Landlord's Indemnification: Landlord shall indemnify, defend, and hold harmless Tenant from and against any and all claims, losses, damages, liabilities, and expenses (including attorneys' fees) arising out of or relating to Landlord's breach of this Lease or the negligence or willful misconduct of Landlord or its agents, employees, or invitees.

Default and Remedies

• Events of Default: The following shall constitute events of default under this Lease:
  • Failure to pay rent when due.
  • Failure to comply with any other term or condition of this Lease.
  • Abandonment of the Premises.
• Cure Period: Tenant shall have [Number] days to cure any default after receiving written notice from Landlord, except for the failure to pay rent, in which case the cure period shall be [Number] days.
• Landlord's Remedies: Upon the occurrence of an event of default, Landlord shall have the right to:
  • Terminate this Lease.
  • Re-enter and take possession of the Premises.
  • Relet the Premises and recover damages from Tenant.
  • Pursue any other remedy available at law or in equity.
• Attorneys' Fees: The prevailing party in any action arising out of or relating to this Lease shall be entitled to recover its reasonable attorneys' fees and costs.
• Arizona Statutory Requirements: This lease complies with Arizona statutory requirements, including those relating to notice and grace periods for defaults. Summary eviction procedures are available to Landlord in the event of a default.

Casualty Damage and Condemnation

• Casualty Damage: If the Premises are damaged by fire or other casualty, Landlord shall have the option to repair the Premises. If the Premises are rendered untenantable, Tenant shall be entitled to a rent abatement during the period of untenantability. If the Premises are damaged to such an extent that repair is not feasible, Landlord may terminate this Lease.
• Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate. Tenant shall be entitled to compensation for its personal property and leasehold improvements, but shall not be entitled to compensation for the value of the Lease itself.

Guaranty

• Option A: The obligations of Tenant under this Lease shall be guaranteed by [Guarantor's Full Legal Name], pursuant to a separate Guaranty Agreement attached hereto.
• Option B: No guaranty is required under this lease.

Surrender of Premises

Upon the expiration or termination of this Lease, Tenant shall surrender the Premises to Landlord in good condition, reasonable wear and tear excepted. Tenant shall remove all of its personal property from the Premises.

• Holdover: If Tenant holds over after the expiration or termination of this Lease, Tenant shall be deemed a tenant at sufferance and shall pay rent at a rate equal to [Percentage]% of the then-current rent.
• Restoration: At the end of the Lease term, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, and remove all alterations or improvements made by Tenant, unless otherwise agreed in writing.

Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved as follows:

• Option A: Mediation: The parties shall first attempt to resolve the dispute through mediation.
• Option B: Arbitration: The parties shall submit the dispute to binding arbitration.
• Option C: Litigation: The parties may pursue any legal remedy available in a court of competent jurisdiction.

• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Arizona.
• Venue: The venue for any action arising out of or relating to this Lease shall be in [County Name] County, Arizona.
• Jury Waiver: The parties hereby waive their right to a jury trial in any action arising out of or relating to this Lease.

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 overnight courier to the addresses set forth in Section 1 above.

• Option A: Notices may also be sent by email to the addresses set forth in Section 1 above, provided that a hard copy of the notice is also sent by one of the methods described above.

Miscellaneous

• 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 written instrument 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.
• Counterparts: This Lease may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
• Waiver: No waiver of any provision of this Lease shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.

Broker Compensation

• Option A: [Broker Name] shall be compensated by [Landlord/Tenant] in accordance with a separate commission agreement.
• Option B: No broker was involved in this transaction.

Disclosures

• Lead-Based Paint Disclosure: [Applicable if Premises were built before 1978] The Premises may contain lead-based paint. A lead-based paint disclosure form is attached hereto.
• Asbestos Disclosure: [Applicable if known] The Premises may contain asbestos.
• Arizona-Specific Disclosures:
  • Transactional Privilege Tax: Tenant acknowledges that transactional privilege tax may be applicable to the rent paid under this Lease, depending on local regulations.
  • Flood History: [If applicable] The property has a history of flooding.
  • Local Zoning/Permits: Tenant is responsible for ensuring its intended use complies with all local zoning and permit requirements.

Additional Provisions

• Option A: Force Majeure: Neither party shall be liable for any failure to perform its obligations under this Lease to the extent that such failure is caused by a force majeure event, such as acts of God, war, terrorism, or government regulation.
• Option B: Pandemic/Public Health Emergency: In the event of a pandemic or public health emergency, the parties shall negotiate in good faith to determine appropriate adjustments to the terms of this Lease.
• Option C: Co-Tenancy/Exclusive Use: [Specify any co-tenancy requirements or exclusive use provisions]
• Option D: Right of First Refusal/Offer: [Specify any right of first refusal or right of first offer provisions]
• Option E: Cannabis/Liquor/Firearms Laws: [If applicable, specify any special provisions relating to Arizona cannabis, liquor, or firearms laws]
• Option F: Compliance with Arizona’s anti-deficiency, insurance, and fire safety statutes.

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

Landlord (Lessor):

____________________________

[Landlord's Signature]

[Landlord's Printed Name]

Tenant (Lessee):

____________________________

[Tenant's Signature]

[Tenant's Printed Name]