Arizona warehouse lease agreement template

Arizona Warehouse Lease Agreement

This Arizona Warehouse Lease Agreement (the “Agreement”) is made and entered into as of [Date], by and between [Landlord Full Legal Name], a [State] [LLC/Corporation], with its principal place of business at [Landlord Address] (“Landlord”), and [Tenant Full Legal Name], a [State] [LLC/Corporation], with its principal place of business at [Tenant Address] (“Tenant”).

1. Premises

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, that certain warehouse space (the “Premises”) located at [Property Address], Unit/Bay Number [Unit/Bay Number], consisting of approximately [Square Footage] square feet, including [Internal Office/Mezzanine Square Footage] square feet of internal office/mezzanine space, and having a clear height of [Clear Height] feet.

Option B: The Premises includes [Number] dock-high doors, each measuring [Door Dimensions], and [Number] grade-level doors, each measuring [Door Dimensions]. The Premises also includes access to a loading area of approximately [Loading Area Size] square feet and a fenced yard area of approximately [Fenced Yard Size] square feet.

Option C: The Premises is further described as including access to the following utilities: [List of Utilities, e.g., electricity, water, sewer, gas], including heavy power capability of [Voltage/Amperage]. The Premises also includes existing racking as specified in Exhibit A.

2. Permitted Use

Option A: The Premises shall be used solely for [Permitted Uses, e.g., storage, light manufacturing, distribution].

Option B: The following uses are strictly prohibited: [Prohibited Uses, e.g., retail sales, residential use, handling of hazardous materials]. Tenant certifies that its operations will conform to the City of [City Name] zoning regulations and the Arizona Department of Environmental Quality (ADEQ) regulations.

3. Lease Term

Option A: The Lease Term shall commence on [Commencement Date] (the “Commencement Date”) and expire on [Expiration Date] (the “Expiration Date”), unless sooner terminated as provided herein. Rent commencement date is [Rent Commencement Date].

Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Term] each, upon written notice to Landlord given at least [Number] months prior to the expiration of the then-current Lease Term.

Option C: Tenant shall have the right of first refusal/first offer on adjacent space known as [Adjacent Space Description], should it become available for lease during the Lease Term.

4. Rent and Security Deposit

Option A: The base rent shall be [Dollar Amount] per month, payable in advance on the first day of each month, to Landlord at [Payment Address] or via electronic transfer to [Bank Name], Account Number [Account Number], Routing Number [Routing Number].

Option B: 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 unpaid rent, damages to the Premises, or other costs incurred by Landlord as a result of Tenant’s breach of this Lease, subject to Arizona law.

Option C: Base Rent shall escalate by [Percentage] percent annually/based on the Consumer Price Index (CPI) beginning on [Date]. A late payment penalty of [Dollar Amount] or [Percentage] percent (whichever is greater) shall be assessed on any payment received more than [Number] days after the due date. A fee of [Dollar Amount] will be charged for any returned check.

Option D: Tenant is responsible for payment of applicable Arizona transaction privilege tax (TPT) on rent at the prevailing rate. Landlord’s TPT license number is [TPT License Number]. Tenant shall obtain its own TPT license if required by the Arizona Department of Revenue.

5. Common Area Maintenance (CAM) / Triple Net Charges

Option A: In addition to the base rent, Tenant shall pay its pro rata share of Common Area Maintenance (CAM) charges, which shall include the costs of maintaining the exterior of the building, landscaping, paving, roof, structural elements, and parking lot. Tenant’s pro rata share shall be [Percentage] percent.

Option B: Landlord is responsible for maintaining the roof and structural elements of the building. Tenant is responsible for maintaining the interior of the Premises.

Option C: Tenant shall pay its pro rata share of real property taxes, estimated to be [Dollar Amount] annually, payable in monthly installments. Arizona property taxes will be adjusted annually based on actual assessments.

6. Utilities

Option A: Tenant shall be responsible for the payment of all utilities serving the Premises, including electricity, water, sewer, gas, trash/recycling, pest control, and internet. Utilities shall be individually metered to the Premises.

Option B: Landlord shall provide water and sewer service. Tenant shall reimburse Landlord for Tenant's share calculated based on [Calculation Method].

Option C: Any installation of specialized utility equipment requires Landlord approval and shall be at Tenant’s sole expense.

7. Access

Option A: Landlord shall have the right to access the Premises upon [Number] hours’ notice for purposes of showing the Premises to prospective tenants or purchasers, inspecting the Premises, or making necessary repairs.

Option B: Tenant shall have access to the Premises 24 hours a day, 7 days a week.

Option C: The Premises is equipped with [Security System Description]. Tenant is responsible for a keycard fee of [Dollar Amount]. Landlord will comply with all applicable Arizona and Federal law regarding tenant privacy.

8. Alterations and Improvements

Option A: Tenant shall not make any alterations or improvements to the Premises without Landlord’s prior written consent.

Option B: All alterations and improvements shall be performed in compliance with all applicable Arizona construction codes, and Tenant shall obtain all necessary permits and licenses. Tenant shall use licensed and bonded contractors. Tenant is responsible for all building permit and impact fees.

Option C: Upon termination of the Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing. All fixtures and trade equipment installed by Tenant shall remain the property of Tenant and may be removed upon termination of the Lease. Tenant shall provide lien waivers to Landlord upon completion of any improvements.

9. Pest Control and Safety

Option A: Tenant shall be responsible for maintaining the Premises free from pests and vermin.

Option B: Tenant shall comply with all OSHA regulations and maintain a safe workplace.

Option C: Special requirements apply to food/chemical storage as specified in Exhibit B.

10. Parking and Signage

Option A: Tenant shall have the right to use [Number] parking spaces for trucks and vehicles. Trailer storage is permitted in the designated area.

Option B: Tenant shall have the right to install signage on the exterior of the building in accordance with Landlord’s signage criteria and applicable local ordinances.

Option C: Tenant shall comply with all Arizona Department of Transportation (ADOT) regulations for commercial vehicle access and use.

11. Repair and Maintenance

Option A: Landlord shall be responsible for maintaining the HVAC system, fire suppression system, sprinkler system, and roof.

Option B: Tenant shall be responsible for maintaining the interior of the Premises, including the electrical system and loading docks.

Option C: Tenant shall promptly report any property damage or environmental spills to Landlord. Remediation shall be conducted in accordance with local and ADEQ requirements.

12. Insurance and Indemnification

Option A: Tenant shall maintain commercial general liability insurance with a minimum limit of [Dollar Amount] per occurrence, property insurance covering the Premises, and workers’ compensation insurance as required by Arizona law.

Option B: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage.

Option C: Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, damages, and liabilities arising out of Tenant’s use of the Premises. Landlord agrees to waive rights of subrogation against tenant.

13. Prohibited Activities

Option A: Tenant shall not engage in any activities that are illegal, create a nuisance, or violate any applicable laws or regulations.

Option B: The handling of flammable or hazardous substances is prohibited without Landlord’s prior written consent and compliance with all applicable environmental regulations.

Option C: Tenant shall comply with procedures outlined in Exhibit C in case of an environmental incident or ADEQ reportable spill.

14. Tenant Improvement Allowance

Option A: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] for buildout of the Premises.

Option B: Buildout shall be performed in accordance with approved plans and specifications. Tenant must use licensed Arizona contractors.

Option C: Tenant is responsible for ensuring compliance with the Americans with Disabilities Act (ADA) and local codes.

15. Move-In and Move-Out

Option A: Tenant shall take possession of the Premises on the Commencement Date in its “as is” condition.

Option B: Upon termination of the Lease, Tenant shall remove all of its personal property and trade fixtures from the Premises and restore the Premises to its original condition, reasonable wear and tear excepted. Tenant shall leave the premises in broom-clean condition.

Option C: Any abandoned property remaining on the Premises after termination of the Lease shall become the property of Landlord. Security deposit return shall be processed per Arizona law.

16. Default and Remedies

Option A: If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall provide Tenant with written notice of the default and a [Number]-day opportunity to cure the default.

Option B: If Tenant fails to cure the default within the cure period, Landlord may terminate the Lease and re-enter the Premises in accordance with Arizona commercial eviction law (A.R.S. § 33-361 et seq.).

Option C: Landlord may accelerate rent, relet the property, and pursue any other remedies available at law or in equity. Waiver of statutory notice is/is not permitted [choose one].

17. Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through good faith negotiation.

Option B: If negotiation is unsuccessful, the parties shall submit the dispute to mediation/arbitration [choose one] in accordance with the rules of the American Arbitration Association.

Option C: Venue for any litigation shall be in [County Name] County, Arizona. This Lease shall be governed by and construed in accordance with the laws of the State of Arizona.

18. Casualty and Condemnation

Option A: If the Premises are damaged by fire or other casualty, Landlord shall restore the Premises to its original condition as soon as reasonably practicable.

Option B: If the Premises are rendered untenantable, Tenant shall be entitled to an abatement of rent during the period of restoration.

Option C: If the Premises are condemned, this Lease shall terminate, and Tenant shall be entitled to compensation for its leasehold interest to the extent permitted by law.

19. Compliance with Laws

Option A: Tenant shall comply with all applicable federal, state, county, and municipal laws, ordinances, rules, and regulations, including fire codes, building codes, and environmental regulations.

Option B: Tenant shall maintain all necessary permits and licenses for its operations.

Option C: Tenant shall comply with all environmental/air quality/permits required by ADEQ or local authorities.

20. Hazard Signage and Safety

Option A: Tenant shall maintain appropriate hazard signage, fire extinguishers, and emergency exits.

Option B: Tenant shall provide training to its employees on warehouse safety procedures.

21. Landlord Lien

Option A: Landlord shall have a lien on Tenant’s personal property located on the Premises to secure the payment of rent.

Option B: Landlord shall provide Tenant with notice of any exercise of its lien rights.

22. Assignment and Sublease

Option A: Tenant shall not assign this Lease or sublease the Premises without Landlord’s prior written consent.

Option B: Landlord’s consent shall not be unreasonably withheld.

23. Employment Laws

Option A: Tenant shall comply with all applicable Arizona employment, immigration, and equal opportunity laws.

24. Inspections

Option A: Landlord shall have the right to conduct periodic property inspections, environmental audits, and building systems testing.

25. Notices

Option A: All notices required or permitted under this Lease shall be in writing and shall be deemed to have been given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above. Electronic communication practices are permitted if [Description of Permissible Practices].

26. Miscellaneous

Option A: This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

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

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

27. Arizona Specific Disclosures

Option A: Known environmental issues on the property, if any: [Description of Known Environmental Issues].

Option B: Known liens on the property, if any: [Description of Known Liens].

Option C: Zoning matters that may affect the property: [Description of Zoning Matters].

28. Regional Practices

Option A: Tenant acknowledges the risk of monsoon/flooding and agrees to take appropriate precautions.

Option B: Tenant is responsible for ensuring proper roof drainage maintenance.

29. Severability

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

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

Landlord:

By: [Landlord Name]

Title: [Landlord Title]

Tenant:

By: [Tenant Name]

Title: [Tenant Title]