Arizona retail lease agreement template

Arizona Retail Lease Agreement

This Retail Lease Agreement (the “Lease”) is made and entered into as of [Date], by and between [Landlord Name], a [Landlord Entity Type, e.g., Arizona Limited Liability Company], with a principal place of business at [Landlord Address], City of [Landlord City], Arizona, zip code [Landlord Zip Code], (hereinafter referred to as "Landlord"), and [Tenant Name], a [Tenant Entity Type, e.g., Arizona Corporation], with a principal place of business at [Tenant Address], City of [Tenant City], Arizona, zip code [Tenant Zip Code], (hereinafter referred to as "Tenant"). Landlord's registered agent is [Landlord Registered Agent Name], located at [Landlord Registered Agent Address]. Tenant's registered agent is [Tenant Registered Agent Name], located at [Tenant Registered Agent Address].

Premises

• Option A: Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that certain retail space (the “Premises”) located at [Premises Address], City of [Premises City], Arizona, zip code [Premises Zip Code], with parcel number [Parcel Number], consisting of approximately [Rentable Square Footage] rentable square feet. The store frontage measures [Store Frontage Measurement].
• Option B: The Premises are further depicted on Exhibit A attached hereto and made a part hereof, and include the right to use [Number] parking spaces, the shared use of the loading dock, and the right to display signage on [Signage Location]. The Premises include the following access points: [Description of Access Points]. The use of the [Storage Area/Loading Dock/Parking Spaces/Signage Areas/Delivery Zones] is [Exclusive/Shared].

Permitted Use

• Option A: Tenant shall use the Premises solely for the purpose of operating a [Type of Retail Business, e.g., apparel store, restaurant] (the “Permitted Use”) and for no other purpose.
• Option B: The Permitted Use specifically excludes the following activities: [List of Prohibited Uses].
• Tenant shall comply with all applicable local zoning ordinances, city/municipality use permits, sales tax licensing requirements, Arizona Department of Revenue tax registration requirements, and any applicable county public health permits. Tenant shall operate the Premises during the hours of [Operating Hours], subject to any restrictions imposed by applicable law or the shopping center.

Lease Term

• Option A: 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 B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term] each, provided Tenant gives Landlord written notice of its election to renew at least [Number] months prior to the expiration of the then-current term.
• If Tenant remains in possession of the Premises after the Expiration Date, such holdover shall be deemed a month-to-month tenancy, subject to all of the terms and conditions of this Lease, except that the monthly rent shall be [Percentage]% of the then-current monthly rent. Upon expiration of the Lease, Tenant shall surrender the Premises in the condition required herein.

Rent

• Option A (Fixed Rent): Tenant shall pay Landlord base rent in the amount of [Dollar Amount] per month (the “Base Rent”), payable in advance on the first day of each month during the Term, at [Payment Address].
• Option B (Percentage Rent): In addition to the Base Rent, Tenant shall pay Landlord percentage rent equal to [Percentage]% of Tenant's gross sales exceeding [Dollar Amount] in any calendar year (the "Percentage Rent"). "Gross sales" shall mean all revenues derived from sales made in or from the Premises.
• Late payments shall be subject to a late charge of [Dollar Amount or Percentage]% of the amount due. If rent is not paid within [Number] days of the due date, Landlord may pursue all remedies available under Arizona law, including termination of the Lease.
• Tenant shall provide Landlord with a security deposit in the amount of [Dollar Amount], which shall be held by Landlord as security for Tenant’s performance of its obligations under this Lease. The security deposit shall be returned to Tenant within [Number] days after the expiration or termination of this Lease, less any amounts necessary to cover damages to the Premises or unpaid rent. Acceptable forms of payment are [Acceptable Payment Methods].

Lease Type

• Option A (Triple Net/NNN): This is a triple net lease. Tenant shall be responsible for paying all property taxes, insurance, and common area maintenance (CAM) expenses related to the Premises. Property taxes shall be calculated according to the County Assessor's valuation procedures.
• Option B (Modified Gross): This is a modified gross lease. Landlord shall be responsible for paying property taxes and insurance. Tenant shall be responsible for CAM expenses.
• Option C (Gross): This is a gross lease. Landlord shall be responsible for paying all property taxes, insurance, and CAM expenses.
• Property taxes are allocated as follows: [Allocation Details]. The cap on pass-through expenses is [Dollar Amount/Percentage].
• Tenant shall maintain the following insurance coverage: [List of Insurance Coverage Requirements, including minimum liability coverage and additional insured endorsements naming the landlord, business interruption coverage, and workers’ compensation].

Maintenance and Repair

• Option A: Tenant shall be responsible for maintaining and repairing the interior of the Premises, including fixtures, signage, storefront, plate glass, and HVAC systems exclusively serving the Premises.
• Option B: Landlord shall be responsible for maintaining and repairing the structure, roof, and exterior of the Premises, as well as all code-mandated repairs required to maintain the Premises in a fit condition as per A.R.S. § 33-1324 (as adapted for commercial leases by agreement). Landlord shall provide Tenant with [Number] days' notice prior to entering the Premises for repairs, except in cases of emergency.
• Tenant must notify Landlord in writing of any needed repairs to the building structure or roof.

Tenant Improvements

• Option A: Tenant shall be responsible for all tenant improvements to the Premises. All plans and specifications for tenant improvements must be submitted to and approved by Landlord prior to commencement of any work.
• Option B: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount]. Tenant is responsible for obtaining all necessary city/county building permits. Tenant improvements must comply with all applicable ADA requirements under Arizona and federal law.
• Any alterations to the Premises must be restored to their original condition upon lease termination, unless otherwise agreed in writing by Landlord.

Signage

• Option A: Tenant shall have the right to install signage on the Premises, subject to Landlord's approval of the design and compliance with all applicable local sign ordinances.
• Option B: Tenant's signage shall be limited to [Signage Restrictions, e.g., size, location, type of sign]. Tenant shall be responsible for removing its signage at the expiration or termination of this Lease.

Hazardous Materials

Tenant shall not use, store, or dispose of any hazardous substances on the Premises in violation of any applicable laws or regulations, including those of the Arizona Department of Environmental Quality (ADEQ) and the federal EPA. Tenant shall indemnify Landlord against any and all claims, damages, and liabilities arising out of Tenant's use, storage, or disposal of hazardous substances on the Premises.

Insurance and Indemnity

Tenant shall maintain commercial general liability insurance with minimum limits of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, naming Landlord as an additional insured. Tenant shall provide Landlord with a certificate of insurance evidencing such coverage. Landlord shall maintain insurance on the building. Both Landlord and Tenant waive the right to subrogation against each other.

Assignment and Subletting

• Option A: Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld.
• Option B: Landlord may withhold consent if the proposed assignee or subtenant does not meet Landlord’s reasonable financial qualifications.

Default and Remedies

The following shall constitute events of default by Tenant: failure to pay rent when due, unauthorized use of the Premises, unpermitted alterations, or any other material breach of this Lease. Upon the occurrence of an event of default, Landlord shall have the right to terminate this Lease, re-enter the Premises, accelerate rent, and pursue all other remedies available under Arizona law.

Tenant shall have a right to cure any monetary default within [Number] days after written notice from Landlord.

Access

Landlord shall have the right to enter the Premises upon [Number] hours' notice (except in cases of emergency) for the purpose of inspecting the Premises, making repairs, or showing the Premises to prospective tenants or purchasers.

Surrender

Upon the expiration or termination of this Lease, Tenant shall surrender the Premises in the same condition as received, reasonable wear and tear excepted. Tenant shall remove all of its personal property from the Premises. Any personal property remaining on the Premises after the expiration or termination of this Lease shall become the property of Landlord.

Sales Tax

Tenant shall be responsible for collecting and remitting all applicable Arizona transaction privilege tax (TPT) on sales made from the Premises. The parties shall allocate lease tax as follows: [Allocation of Lease Tax Responsibilities]. Landlord shall have audit rights to review tenant's sales records for percentage rent calculation.

Common Areas

Tenant shall have the right to use the common areas of the shopping center, subject to Landlord's reasonable rules and regulations. Landlord may amend such rules and regulations from time to time.

Utilities

Tenant shall be responsible for paying for all utilities serving the Premises, including water, gas, electricity, and sewer. Utilities shall be metered separately to the Premises, and tenant will pay utilities directly to the provider.

Casualty and Condemnation

If the Premises are damaged by fire or other casualty, Landlord shall restore the Premises to their prior condition, provided such restoration can be completed within [Number] days. If the Premises are rendered untenantable, rent shall abate until the Premises are restored. If the Premises are condemned, this Lease shall terminate.

ADA Compliance

Tenant shall be responsible for complying with all applicable requirements of the Americans with Disabilities Act (ADA) with respect to its use of the Premises.

Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City], Arizona, before resorting to litigation. This Lease shall be governed by and construed in accordance with the laws of the State of Arizona.

Nondiscrimination

Landlord and Tenant agree not to discriminate against any person on the basis of race, color, religion, sex, national origin, age, disability, or familial status.

Licensing and Permits

Tenant shall be responsible for obtaining and maintaining all necessary business licenses, permits, and regulatory registrations required to operate its business on the Premises.

Successors and Assigns

This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

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.

Governing Law

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

Amendment

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

Estoppel Certificate

Tenant shall, within [Number] days after request by Landlord, execute and deliver to Landlord an estoppel certificate confirming the terms of this Lease.

Notice

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

Shopping Center Rules

Tenant agrees to comply with all rules and regulations applicable to the shopping center of which the Premises are a part.

Environmental Representations

Landlord represents that it has no knowledge of any underground storage tanks or hazardous materials located on the Premises.

Local Ordinances

Tenant shall comply with all applicable local city ordinances and business improvement district restrictions.

Real Estate License Numbers

Landlord's real estate license number (if applicable): [Landlord's Real Estate License Number]. Property Manager's real estate license number (if applicable): [Property Manager's Real Estate License Number]. Agency Disclosure: [Disclosure of Agency Relationship, if applicable].

Material Facts Disclosure

Landlord discloses the following known material facts about the condition of the property: [Disclosure of Known Material Facts].

Retail-Specific Provisions

Tenant shall maintain a security system for the Premises. Tenant is responsible for obtaining music licenses for music played in the Premises. Tenant shall comply with the shopping center’s holiday hours mandates and shall participate in mall-wide events.

Rent Abatement/Relocation

In the event Landlord undertakes major structural repairs or renovations, Tenant shall be entitled to rent abatement or relocation rights as follows: [Details of Rent Abatement and Relocation Rights].

Mold and Pest Control

Landlord shall be responsible for providing pest control services for the common areas of the building. Tenant is responsible for the interior of their premises.

Digital/Online Sales

Digital and online sales are [Included/Excluded] in the calculation of gross sales for percentage rent purposes. Landlord has the right to audit Tenant's sales records, with a preservation and inspection period of [Number] years.

Compliance Updates

Tenant shall comply with all changes to Arizona retail, environmental, or tax regulations during the lease term.

Statutory Disclosures

[Include any applicable statutory disclosures, such as lead-based paint disclosure, flood disclosure, or fire disclosure].

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

Landlord:

____________________________

[Landlord Name]

By: ____________________________

[Landlord Authorized Signatory Name]

Title: [Landlord Authorized Signatory Title]

Tenant:

____________________________

[Tenant Name]

By: ____________________________

[Tenant Authorized Signatory Name]

Title: [Tenant Authorized Signatory Title]

Exhibit A: [Attach a site plan of the premises]