Arkansas commercial lease agreement template

Arkansas Commercial Lease Agreement

This Commercial Lease Agreement (the “Lease”) is made and effective as of this [Date], by and between [Landlord Name/Legal Business Name], a [Business Structure: Individual, Corporation, LLC] with its principal place of business at [Landlord Address], hereinafter referred to as "Landlord," and [Tenant Name/Legal Business Name], a [Business Structure: Individual, Corporation, LLC] with its principal place of business at [Tenant Address], hereinafter referred to as "Tenant."

Landlord Information:

• Name: [Landlord Name]
• Business Structure: [Landlord Business Structure]
• Address: [Landlord Address]
• Phone: [Landlord Phone Number]
• Agent/Representative (if applicable): [Agent Name]

Tenant Information:

• Name: [Tenant Name]
• Business Structure: [Tenant Business Structure]
• Address: [Tenant Address]
• Phone: [Tenant Phone Number]
• Agent/Representative (if applicable): [Agent Name]

Leased Premises

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises (the "Leased Premises") located at [Property Address], legally described as [Legal Description of Property], being Suite/Unit Number [Suite/Unit Number], consisting of approximately [Square Footage] square feet, together with the use of common areas designated by Landlord.

• Premises Details:
• Property Address: [Property Address]
• Legal Description: [Legal Description]
• Suite/Unit Number: [Suite/Unit Number]
• Square Footage: [Square Footage]
• Common Areas:
  • Option A: Tenant shall have the right to use, in common with other tenants of the building, the common areas and facilities.
  • Option B: Tenant shall not have the right to use common areas.

Permitted Use

The Leased Premises shall be used and occupied by Tenant solely for the purpose of [Describe Permitted Use], and for no other purpose.

• Use Options:
• Option A: Exclusive Use: Landlord agrees not to lease any other space in the building for the same or substantially similar use.
• Option B: No Exclusive Use: Landlord reserves the right to lease other spaces in the building for similar uses.
• Option C: Restrictions: Tenant shall not use the Leased Premises for any purpose that is unlawful, creates a nuisance, or violates any applicable laws or regulations. This includes, but is not limited to, restrictions on hazardous activities.
• Option D: Compliance: Tenant shall comply with all applicable zoning ordinances, building codes, and other applicable laws, rules, and regulations.

Lease Term

The term of this Lease shall commence on [Start Date] and shall expire on [End Date].

• Lease Term Options:
• Option A: Fixed Term: As stated above.
• Option B: Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the initial term.
• Option C: Month-to-Month: This Lease shall continue on a month-to-month basis after the initial term expires, terminable by either party upon [Number] days' written notice.
• Option D: Early Termination: Tenant shall have the right to terminate this Lease early upon payment of a termination fee equal to [Amount] and providing [Number] days' written notice to Landlord.

Rent

Tenant shall pay to Landlord as base rent for the Leased Premises the sum of [Rent Amount] per [Payment Frequency: Month, Quarter, Year], payable in advance on the [Day] day of each [Month, Quarter, Year].

• Rent Payment Details:
• Payment Frequency: [Monthly, Quarterly, Annually]
• Payment Method: [Check, Electronic Transfer, Other]
• Late Fee: If rent is not received within [Number] days of the due date, a late fee of [Dollar Amount or Percentage] will be charged. (Must be reasonable and agreed upon, in accordance with Arkansas law).
• Grace Period: [Number] days.
• Rent Adjustment:
  • Option A: Annual Escalation: Rent shall increase by [Percentage] each year.
  • Option B: CPI Increase: Rent shall be adjusted annually based on the Consumer Price Index (CPI).
  • Option C: Rent Review: Rent shall be reviewed and adjusted every [Number] years to reflect fair market value.

Additional Rent and Expenses

In addition to base rent, Tenant shall be responsible for the following expenses:

• Expense Allocation:
• Triple Net (NNN) Charges: [Yes/No] If yes, specify details.
• Common Area Maintenance (CAM) Fees: [Yes/No] If yes, specify amount and payment schedule.
• Property Taxes: [Tenant/Landlord] responsible.
• Insurance Premiums: [Tenant/Landlord] responsible.
• Utilities (Electricity, Water, Gas, Trash): [Tenant/Landlord] responsible for each.
• Janitorial Services: [Tenant/Landlord] responsible.
• Repairs and Maintenance: [Tenant/Landlord] responsible (see Section 8).

Security Deposit

Tenant shall deposit with Landlord the sum of [Deposit Amount] as a security deposit, to be held by Landlord as security for the performance of Tenant's obligations under this Lease. This amount shall not exceed two months’ rent, as per Arkansas law, for properties other than manufacturing ones.

• Security Deposit Details:
• Amount: [Deposit Amount]
• Permitted Uses: Landlord may use the security deposit to cover damages to the Leased Premises, unpaid rent, or other breaches of this Lease.
• Interest Accrual: [Yes/No] (If yes, specify interest rate and payment terms)
• Return Procedures: Landlord shall return the security deposit, less any deductions, within 60 days of the termination of this Lease, as required by Arkansas law.
• Deductions: Landlord shall provide Tenant with an itemized list of any deductions from the security deposit.

Use of Premises, Assignment and Subletting

The Leased Premises shall be used solely for the Permitted Use outlined in Section 3. Tenant shall not engage in any activity that is unlawful, creates a nuisance, or violates any applicable laws or regulations.

• Subleasing and Assignment:
• Option A: Prohibited: Tenant shall not sublease or assign this Lease without Landlord's prior written consent.
• Option B: Permitted with Consent: Tenant may sublease or assign this Lease with Landlord's prior written consent, which consent shall not be unreasonably withheld.
• Option C: Freely Assignable: Tenant shall have the right to freely assign this Lease.

Tenant Improvements

Any improvements, buildouts, or alterations to the Leased Premises shall be subject to Landlord's prior written approval.

• Improvement Options:
• Approval: Tenant shall submit plans and specifications to Landlord for approval prior to commencing any improvements.
• Ownership: All fixtures installed by Tenant shall become the property of [Landlord/Tenant] upon termination of this Lease.
• Restoration: Tenant shall [Restore/Not Restore] the Leased Premises to its original condition upon termination of this Lease.
• Allowance: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount].

Repair and Maintenance

Landlord shall be responsible for maintaining the structural integrity of the Leased Premises, including the roof, foundation, and exterior walls. Tenant shall be responsible for maintaining the interior of the Leased Premises in good condition and repair.

• Maintenance Responsibilities:
• Structural: Landlord
• Non-Structural: Tenant
• HVAC: [Tenant/Landlord] responsible.
• Plumbing: [Tenant/Landlord] responsible.
• Signage: [Tenant/Landlord] responsible.
• Landscaping: [Tenant/Landlord] responsible.
• Pest Control: [Tenant/Landlord] responsible.
• Emergency Repairs: In the event of an emergency, Tenant shall notify Landlord immediately. If Landlord fails to respond promptly, Tenant may make the necessary repairs and deduct the cost from future rent payments.

Insurance

Tenant shall maintain commercial general liability insurance with a minimum coverage of [Coverage Amount] per occurrence and property insurance covering Tenant's personal property. Landlord shall maintain property insurance covering the Leased Premises.

• Insurance Requirements:
• Liability Insurance: [Coverage Amount]
• Property Insurance: Tenant's responsibility for own property. Landlord responsible for building.
• Business Interruption: [Tenant/Landlord] responsible.
• Subrogation Waivers: Both parties waive their rights of subrogation against each other.
• Additional Insured: Both Landlord and Tenant shall be named as additional insured on each other's policies.
• Evidence of Insurance: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage.

Indemnity

Tenant shall indemnify and hold harmless Landlord from and against any and all claims, losses, damages, or injuries arising from Tenant's use or occupancy of the Leased Premises, except to the extent caused by Landlord's negligence or willful misconduct. Landlord shall indemnify and hold harmless Tenant from and against any and all claims, losses, damages, or injuries arising from Landlord's negligence or willful misconduct.

• Scope of Indemnity:
• Limited: Each party's indemnity obligation shall be limited to the extent of their respective negligence.
• Broad: Each party's indemnity obligation shall extend to all claims, losses, damages, or injuries, regardless of fault.

Casualty and Condemnation

If the Leased Premises are damaged by fire or other casualty, rent shall abate proportionally to the extent the Leased Premises are unusable. If the Leased Premises are condemned, this Lease shall terminate.

• Casualty/Condemnation Options:
• Rent Abatement: Rent shall abate until the Leased Premises are restored to a usable condition.
• Repair Timeline: Landlord shall have [Number] days to repair the Leased Premises.
• Termination Rights: Either party may terminate this Lease if the damage is substantial or the condemnation renders the Leased Premises unusable.
• Insurance Proceeds: Insurance proceeds shall be used to repair the Leased Premises.

Default and Remedies

If Tenant fails to pay rent when due or otherwise breaches this Lease, Landlord shall have the right to terminate this Lease and retake possession of the Leased Premises.

• Default and Remedies Options:
• Notice Requirement: Landlord shall provide Tenant with written notice of default and an opportunity to cure the default within [Number] days.
• Remedies: Landlord shall have the right to terminate this Lease, retake possession of the Leased Premises, and recover damages, including unpaid rent, late fees, and the cost of re-letting the Leased Premises.
• Tenant's Remedies: If Landlord breaches this Lease, Tenant shall have the right to pursue all available legal remedies.

Surrender of Premises

Upon termination of this Lease, Tenant shall surrender the Leased Premises to Landlord in the same condition as received, reasonable wear and tear excepted, removing all personal property and repairing any damage caused by Tenant.

• Surrender Details:
• Personal Property: Tenant shall remove all personal property from the Leased Premises.
• Repairs: Tenant shall repair any damage caused by Tenant.
• Cleaning: Tenant shall clean the Leased Premises.
• Keys: Tenant shall return all keys and security devices to Landlord.

Compliance with Laws

Tenant shall comply with all applicable federal, state (including Arkansas), and local laws, rules, and regulations, including, but not limited to, non-discrimination laws, health and safety regulations, ADA compliance, and environmental laws.

• Arkansas-Specific Compliance:
• Reference to Arkansas Landlord-Tenant Law
• Flood Zone Hazard Disclosure (if applicable)
• Lead-Based Paint Disclosure (for structures built before 1978)
• Arkansas Security Deposit Statutes Compliance
• Adherence to Arkansas Late Fee Limits

Access

Landlord shall have the right to enter the Leased Premises for inspection, repairs, or to show the Leased Premises to prospective tenants or purchasers, upon reasonable notice to Tenant, except in cases of emergency.

• Access Details:
• Notice: Landlord shall provide Tenant with [Number] hours' notice prior to entering the Leased Premises.
• Timeframes: Landlord shall only enter the Leased Premises during reasonable business hours.
• Purpose: Landlord shall only enter the Leased Premises for legitimate business purposes.

Signage

Tenant shall have the right to install signage on the Leased Premises, subject to Landlord's approval and compliance with all applicable building codes and regulations.

• Signage Details:
• Approval: Tenant shall submit signage plans to Landlord for approval prior to installation.
• Restrictions: Tenant shall comply with all applicable building codes and regulations regarding signage.

Personal Guarantee (Optional)

In consideration of Landlord entering into this Lease with Tenant, [Guarantor Name], residing at [Guarantor Address], personally guarantees the performance of all of Tenant’s obligations under this Lease.

Renewal Options

Tenant shall [Have/Not Have] the option to renew this Lease for an additional term of [Number] years, subject to the terms and conditions outlined in Section 4.

• Renewal Right Options
• Right of First Refusal: Tenant shall have the right of first refusal to lease any additional space that becomes available in the building.
• Expansion Option: Tenant shall have the option to lease additional space in the building as it becomes available.

Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through [Mediation/Arbitration/Litigation].

• Dispute Resolution Options:
• Mediation: The parties shall attempt to resolve the dispute through mediation.
• Arbitration: The dispute shall be resolved through binding arbitration.
• Litigation: The dispute shall be resolved in a court of law.
• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Arkansas.
• Venue: Venue for any legal action shall be in [County Name] County, Arkansas.
• Jury Trial Waiver: Both Landlord and Tenant waive their right to a jury trial.

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 email, to the addresses set forth above.

• Notice Details:
• Writing Requirement: All notices must be in writing.
• Delivery Methods: Notices may be sent by certified mail, email, or personal delivery.
• Landlord Notice Address: [Landlord Address], Email: [Landlord Email]
• Tenant Notice Address: [Tenant Address], Email: [Tenant Email]

Entire Agreement

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

• Additional Clauses:
• Amendment: This Lease may be amended only by a written instrument signed by both parties.
• Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
• 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.
• Force Majeure: Neither party shall be liable for any 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 government regulation.
• Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Optional Clauses

• Green/Energy Efficiency Addendum
• Pet or Smoking Restrictions
• Co-Tenancy Requirements
• Seasonal Business Hours
• Right to Relocate Within Complex
• Reciprocal Easement Maintenance Agreements
• Parking Allocation Formulas
• Utility Submetering Arrangements

Electronic Signatures

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. Electronic signatures shall be accepted as original signatures.

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

____________________________
[Landlord Name]

____________________________
[Tenant Name]