Arizona office lease agreement template

Arizona Office Lease Agreement

This Arizona Office Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between [Landlord Name], whose principal place of business is located at [Landlord Arizona Address] ("Landlord"), and [Tenant Name], whose principal place of business is located at [Tenant Arizona Address] ("Tenant").

1. Premises

Option A: Landlord leases to Tenant, and Tenant leases from Landlord, the office premises located at [Property Address], Suite/Unit [Suite/Unit Number], in the City of [City], County of [County], State of Arizona, consisting of approximately [Total Rentable Square Footage] rentable square feet and [Total Usable Square Footage] usable square feet (the "Premises"). The Premises is located on the [Floor Level] floor of the building.

Option B: The Premises is further described on Exhibit A attached hereto, which includes a floor plan and designates the office areas, shared spaces, parking allocation, and access to common-area amenities.

2. Use

Option A: The Premises shall be used solely for general office purposes and activities incidental thereto.

Option B: The Premises shall not be used for any purpose inconsistent with applicable zoning codes, Arizona health and safety requirements, or municipal ordinances. Tenant shall not engage in any unlawful, hazardous, or non-office activities on the Premises. Tenant shall not assign, sublease, or share space without Landlord's prior written consent, which consent shall not be unreasonably withheld in accordance with Arizona law.

3. Term

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

Option B:

• Renewal Option: Provided Tenant is not in default, Tenant shall have the option to renew this Lease for one (1) additional term of [Renewal Term Length] years. Tenant must provide Landlord with written notice of its intent to renew at least [Number] months prior to the expiration of the then-current Term. The rent for the renewal term shall be the fair market rental value at the time of renewal.
• Holdover: If Tenant remains in possession of the Premises after the expiration of the Term, such holdover shall be deemed a month-to-month tenancy, terminable by either party upon thirty (30) days' written notice. The rent during any holdover period shall be [Percentage]% of the then-current rent.

4. Rent

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

Option B:

• Escalation: The base rent shall increase by [Percentage]% annually, commencing on the first anniversary of the Commencement Date.
• Additional Rent: In addition to the base rent, Tenant shall be responsible for Tenant's Pro Rata Share of Common Area Maintenance (CAM), Real Property Taxes, and Insurance Costs, as defined below.
• Arizona Gross Receipts Tax/Transaction Privilege Tax: Landlord [is/is not] responsible for payment of all applicable Arizona Gross Receipts Tax/Transaction Privilege Tax (TPT) associated with the rental payments. If Landlord is responsible, Landlord will remit the TPT to the state. If Tenant is responsible, Tenant will reimburse the Landlord for any TPT assessed on the rental payments within [Number] days of Landlord's invoice.
• Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount]. The security deposit will be held by Landlord as security for the performance of Tenant's obligations under this Lease and will be returned to Tenant within [Number] days after the expiration or termination of this Lease, less any deductions for damages or unpaid rent, as permitted by ARS § 33-1321.

5. Pass-Through Charges

Option A: Tenant shall pay its pro rata share of CAM, real property taxes, and insurance costs (collectively, "Pass-Through Charges"). Tenant's pro rata share is calculated as the ratio of the rentable square footage of the Premises to the total rentable square footage of the building (the "Pro Rata Share").

Option B:

• CAM: CAM includes all costs associated with maintaining the common areas of the building, including but not limited to landscaping, janitorial services, security, and repairs.
• Real Property Taxes: Tenant shall pay its Pro Rata Share of all real property taxes levied against the building. Landlord shall provide Tenant with copies of tax bills.
• Insurance Costs: Tenant shall pay its Pro Rata Share of the cost of insurance maintained by Landlord on the building.
• Utilities: Tenant is responsible for directly paying all utilities for the Premises, including electricity, gas, water, and sewer. Landlord will provide a separate meter for the Premises.
• Reconciliation: Landlord shall provide Tenant with an annual statement of Pass-Through Charges within [Number] days after the end of each calendar year. Tenant shall pay any underpayment within [Number] days of receipt of the statement. Landlord shall refund any overpayment within [Number] days of the statement.
• Audit: Tenant shall have the right to audit Landlord's records relating to Pass-Through Charges, provided Tenant gives Landlord [Number] days' prior written notice.

6. Tenant Improvements and Alterations

Option A: Tenant shall accept the Premises in its "as-is" condition.

Option B: Tenant shall perform the following tenant improvements at its own expense: [Description of Tenant Improvements]. All improvements must be approved by Landlord in writing prior to commencement of work and must comply with all applicable building codes, including ADA requirements.

• Landlord Approval: All alterations and improvements to the Premises shall require Landlord's prior written approval, which shall not be unreasonably withheld. Tenant shall provide Landlord with plans and specifications for any proposed alterations.
• Permitting: Tenant shall be responsible for obtaining all necessary permits and licenses for any alterations.
• Contractors: All work shall be performed by licensed contractors approved by Landlord.
• Restoration: At the expiration or termination of this Lease, Tenant shall, at Landlord's option, remove any alterations or improvements and restore the Premises to its original condition.

7. Repair and Maintenance

Option A: Landlord shall be responsible for maintaining the structural elements of the building, including the roof, foundation, and exterior walls. Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures and equipment.

Option B:

• Landlord Responsibilities: Landlord shall maintain the common areas of the building, including lobbies, hallways, restrooms, and elevators. Landlord shall also maintain the HVAC, plumbing, and electrical systems serving the building.
• Tenant Responsibilities: Tenant shall maintain the Premises in a clean and orderly condition. Tenant shall be responsible for repairing any damage to the Premises caused by Tenant or its employees, agents, or invitees, ordinary wear and tear excepted.
• Notification: Tenant shall promptly notify Landlord of any needed repairs or maintenance.

8. Delivery and Surrender of Premises

Option A: Landlord shall deliver the Premises to Tenant in broom-clean condition on the Commencement Date.

Option B:

• Inspection: Tenant shall have [Number] days from the Commencement Date to inspect the Premises and notify Landlord of any defects.
• Surrender: Upon the expiration or termination of this Lease, Tenant shall surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear excepted. Tenant shall remove all its personal property from the Premises. Any property left on the Premises after the expiration or termination of this Lease shall be deemed abandoned and may be disposed of by Landlord at Tenant's expense.

9. Signage

Option A: Tenant shall have the right to install signage on the exterior of the Premises, subject to Landlord's approval and compliance with all applicable building codes and ordinances, including City of Phoenix (or applicable Arizona jurisdiction) ordinances.

Option B: All signage must conform to Landlord's signage standards.

10. Insurance

Option A: Tenant shall maintain commercial general liability insurance with limits of not less than [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate. Landlord shall be named as an additional insured on Tenant's policy.

Option B:

• Property Insurance: Tenant shall maintain property insurance covering Tenant's personal property and any improvements made by Tenant to the Premises.
• Certificates of Insurance: Tenant shall provide Landlord with certificates of insurance evidencing the required coverages prior to the Commencement Date and upon renewal of the policies.
• Subrogation: Tenant waives all rights of subrogation against Landlord.

11. Fire and Casualty

Option A: If the Premises is damaged by fire or other casualty, Landlord shall repair the Premises within a reasonable time. Rent shall be abated during the period of repair, to the extent the Premises is untenantable.

Option B:

• Termination: If the Premises is damaged to the extent that it is untenantable and cannot be repaired within [Number] days, either party may terminate this Lease upon written notice to the other party.
• Business Interruption: Tenant shall be responsible for its own business interruption insurance.

12. Compliance with Laws

Option A: Tenant shall comply with all federal, state, and local laws, ordinances, and regulations applicable to the Premises, including the Arizona Revised Statutes Title 33 and the Arizona Disabilities Act.

Option B: Tenant shall not use the Premises in any manner that violates any law, ordinance, or regulation.

13. Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through mediation in [County] County, Arizona, before resorting to litigation.

Option B:

• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Arizona.
• Attorney's Fees: The prevailing party in any legal action or proceeding relating to this Lease shall be entitled to recover its reasonable attorney's fees and costs.
• Notice: All notices 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 reputable overnight courier service to the addresses set forth above, in line with ARS § 33-322.

14. Default and Remedies

Option A: If Tenant fails to pay rent when due or otherwise breaches this Lease, Landlord may terminate this Lease and evict Tenant in accordance with Arizona law under ARS § 33-361 et seq.

Option B:

• Cure Period: Tenant shall have [Number] days to cure any monetary default and [Number] days to cure any non-monetary default after written notice from Landlord.
• Re-letting: If Landlord terminates this Lease due to Tenant's default, Landlord may re-let the Premises and hold Tenant liable for any deficiency in rent.
• Lockout: Landlord's lockout procedures shall comply with Arizona’s commercial eviction laws under ARS § 33-361 et seq.

15. Indemnification

Option A: Tenant shall indemnify and hold Landlord harmless from any and all claims, liabilities, damages, and expenses arising out of Tenant's use of the Premises.

Option B: Landlord shall indemnify and hold Tenant harmless from any and all claims, liabilities, damages, and expenses arising out of Landlord's gross negligence or willful misconduct.

16. Environmental Compliance

Option A: Tenant shall not use, store, or dispose of any hazardous substances on the Premises in violation of any applicable environmental laws, including state and city hazardous materials law.

Option B: If the building was built before 1981, Landlord shall provide Tenant with information regarding asbestos, if any, present in the building. Tenant shall report any spills or releases of hazardous substances to the appropriate authorities.

17. Landlord's Right of Entry

Option A: Landlord shall have the right to enter the Premises at reasonable times and with [Number] hours' notice for the purpose of inspection, repair, or showing the Premises to prospective tenants or purchasers, unless an emergency allows immediate access, per Arizona statutes.

Option B: Landlord shall not unreasonably interfere with Tenant's use of the Premises.

18. Subordination and Attornment

Option A: This Lease shall be subordinate to any mortgage or deed of trust now or hereafter placed upon the building.

Option B: In the event of a sale or transfer of the building, Tenant shall attorn to the new owner.

19. Force Majeure

Option A: Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to any cause beyond its reasonable control, including but not limited to acts of God, war, terrorism, or natural disasters.

Option B: Financial inability is not considered a force majeure event.

20. Limitation of Liability

Option A: Landlord's liability under this Lease shall be limited to Landlord's interest in the building.

Option B: Landlord shall not be liable for any consequential damages.

21. Broker Commission

Option A: Landlord and Tenant represent that no broker was involved in this transaction.

Option B: The Landlord and Tenant agree that [Broker Name], Arizona DRE License # [License Number], represented the Landlord and [Broker Name], Arizona DRE License # [License Number], represented the Tenant in this transaction. Landlord shall be responsible for paying the commission to Landlord's broker and Tenant shall be responsible for paying commission to Tenant's broker per a separate agreement.

22. Entire Agreement

Option A: This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

Option B: Any amendments to this Lease must be in writing and signed by both parties, as required under Arizona’s Statute of Frauds for commercial leases.

23. Additional Provisions

Option A: [Insert any additional provisions here. For example: HVAC after-hours supplemental rates, parking structure policies, and water conservation measures.]

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

Landlord:

[Landlord Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

Tenant:

[Tenant Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]