Arkansas retail lease agreement template

Arkansas Retail Lease Agreement

This Arkansas Retail Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between [Landlord Name/Entity Name], a [Landlord Entity Type, e.g., Individual, Corporation, LLC], with a principal place of business at [Landlord Address], County of [Landlord County] (hereinafter referred to as "Landlord"), and [Tenant Name/Entity Name], a [Tenant Entity Type, e.g., Individual, Corporation, LLC], with a principal place of business at [Tenant Address], County of [Tenant County] (hereinafter referred to as "Tenant").

Leased Premises: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the retail premises (the "Premises") located at [Property Address], County of [Property County], Arkansas, and described as follows:

• Total square footage: [Square Footage] square feet.
• Unit Number: [Unit Number]
• Location within shopping center/strip mall: [Location Description, e.g., End cap unit, Suite 100]
• Storefront frontage: [Frontage Length] feet.
• Designated parking spaces: [Number] spaces, located [Parking Location Description].
• Loading access: [Loading Access Description, e.g., Rear loading dock, Street-level access].
• Included storage/exclusive-use exterior areas: [Storage/Exterior Area Description, e.g., 100 sq ft storage room in the rear, Designated patio area].

Permitted Use: The Premises shall be used and occupied solely for the purpose of [Detailed Description of Permitted Use, e.g., Retail sale of clothing and accessories, Restaurant with dine-in and take-out services], and for no other purpose.

• Option A: Tenant shall comply with all Arkansas zoning regulations, local business licensing requirements, health department regulations (if applicable), and any applicable city ordinances.
• Option B: If Tenant's business requires the sale of alcohol or tobacco, Tenant shall be solely responsible for obtaining and maintaining all required Arkansas Alcoholic Beverage Control (ABC) and Arkansas Tobacco Control permits and licenses.
• Restrictions on Use: [Specific Use Restrictions, e.g., No adult-oriented businesses, No live music after 10 PM].

Lease Term: The term of this Lease shall commence on [Start Date] and shall expire on [End Date] (the "Term").

• Option A: Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Renewal Term Length, e.g., Five (5) years] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the then-current Term. Rent for the renewal term will be [Renewal Rent Calculation, e.g., Fair market value, Original rent plus 3%].
• Option B: Early Termination:
  • By Landlord: Landlord may terminate this lease early due to [Condition for Early Termination, e.g., Demolition of the building] with [Number] days written notice to Tenant.
  • By Tenant: Tenant may terminate this lease early upon payment of a penalty equal to [Penalty Amount, e.g., Six (6) months' rent] and providing [Number] days written notice to Landlord.

Rent: The minimum base rent shall be [Rent per Square Foot] per square foot per year, payable in monthly installments of [Monthly Rent Amount], due on the [Day] day of each month, commencing on [First Rent Payment Date], and shall be paid to Landlord at [Payment Address].

• Option A: Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount], which shall be held by Landlord in accordance with Arkansas law. Landlord shall return the security deposit to Tenant within [Number] days after the termination of this Lease, less any deductions for damages or unpaid rent.
• Option B: Rent Escalation: The base rent shall increase by [Percentage] percent on [Date/Anniversary] of each year during the Lease Term.
• Percentage Rent: In addition to the base rent, Tenant shall pay to Landlord percentage rent equal to [Percentage]% of Tenant's gross sales exceeding [Gross Sales Threshold] in any [Reporting Period, e.g., calendar month, calendar year].
  • Gross sales shall be defined as [Definition of Gross Sales, e.g., All revenue from sales of goods and services at the Premises, excluding sales taxes].
  • Tenant shall provide Landlord with a report of its gross sales for each [Reporting Period, e.g., calendar month, calendar year] within [Number] days after the end of such period.
  • Landlord shall have the right to audit Tenant's sales records upon [Number] days' notice.
  • Late Sales Report Penalty: [Late Sales Report Penalty, e.g., $100 per day].

Taxes: Tenant shall be responsible for the payment, collection, and remittance of all applicable Arkansas, county, and municipal sales/use taxes, and business privilege taxes related to its business operations at the Premises.

• Option A: Real Property Taxes: Landlord shall be responsible for the payment of all real property taxes and special assessments levied against the Premises.
• Option B: Allocation of Taxes: Tenant shall reimburse Landlord for Tenant's pro-rata share of real property taxes based on a percentage of [Percentage]%.

Utilities and Common Area Maintenance (CAM): Tenant shall be responsible for the payment of the following utilities: [List of Utilities Tenant Pays, e.g., Electricity, Gas]. Landlord shall be responsible for the payment of the following utilities: [List of Utilities Landlord Pays, e.g., Water, Sewer].

• Option A: Separate Meters: Tenant shall have separate meters for [List of Utilities with Separate Meters].
• Option B: Allocation Formula: Tenant's share of utilities that are not separately metered shall be calculated as follows: [Allocation Formula, e.g., Based on square footage, Equally divided among tenants].
• CAM: Tenant shall pay its pro-rata share of Common Area Maintenance (CAM) expenses, which shall include [List of CAM Expenses, e.g., Landscaping, Snow removal, Parking lot maintenance]. Tenant's pro-rata share shall be calculated as [Pro-Rata Share Calculation, e.g., Tenant's square footage divided by total square footage of the building].

Tenant Improvements: Tenant shall obtain Landlord’s written approval prior to making any alterations, additions, or improvements to the Premises.

• Option A: Landlord Approval Process: Tenant shall submit detailed plans and specifications to Landlord for approval. Landlord shall have [Number] days to approve or disapprove the plans.
• Compliance: All improvements must comply with Arkansas building codes, ADA requirements, and all other applicable laws and regulations.
• Lien Protection: Tenant shall be responsible for ensuring that no liens are filed against the Premises as a result of Tenant's improvements.
• Post-Occupancy Restoration: Upon termination of the Lease, Tenant shall [Restoration Requirement, e.g., restore the Premises to its original condition, remove all trade fixtures].

Repairs and Maintenance: Tenant shall be responsible for all interior repairs and maintenance to the Premises, including [Tenant Repair Responsibilities, e.g., glass breakage, routine store-fit maintenance]. Landlord shall be responsible for maintaining the roof, structure, parking lot, and major systems of the building.

Insurance: Tenant shall maintain commercial general liability insurance with minimum coverage amounts of [Coverage Amount] per occurrence and [Aggregate Amount] in the aggregate.

• Landlord as Additional Insured: Tenant shall name Landlord as an additional insured on its commercial general liability insurance policy.
• Certificate of Delivery: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage.
• Waiver of Subrogation: Tenant shall obtain a waiver of subrogation from its insurance carrier in favor of Landlord.

Surrender of Premises: Upon the expiration or termination of this Lease, Tenant shall surrender the Premises in good condition, broom clean, and free of all personal property.

• Option A: Removal of Signs and Personal Property: Tenant shall remove all signs and personal property from the Premises.
• Option B: Cleaning Requirements: Tenant shall clean the Premises, including [Cleaning Requirements, e.g., professionally clean the carpets, wash the windows].
• Inspection Rights: Landlord shall have the right to inspect the Premises after Tenant vacates.

Signage: Tenant shall have the right to install signage on the Premises, subject to Landlord's approval and compliance with all applicable city ordinances and regulations.

• Size and Design: All signage must be of a size and design approved by Landlord.
• City Permit Compliance: Tenant shall be responsible for obtaining all necessary permits for its signage.
• Temporary Signage: [Rules for Temporary Signage, e.g., Allowed for promotions with Landlord's approval].

Environmental Compliance: Tenant shall comply with all applicable environmental laws and regulations, including those of the Arkansas Department of Environmental Quality (ADEQ). Tenant shall not store or use any hazardous materials on the Premises without Landlord's prior written consent.

Casualty and Condemnation: If the Premises are damaged by fire or other casualty, Landlord shall have the option to repair the Premises or terminate this Lease.

• Option A: Rent Abatement: If the Premises are damaged and Tenant is unable to operate its business, rent shall abate until the Premises are repaired.
• Option B: Tenant's Obligation: Tenant shall resume operation within [Number] days after the Premises are repaired.

Assignment and Subletting: Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld.

• Sublease Policy: [Details of Sublease Policy, e.g., Landlord must approve the subtenant, Tenant remains liable for rent].

Default: If Tenant fails to pay rent when due or otherwise breaches this Lease, Landlord shall have the right to pursue all remedies available under Arkansas law, including eviction.

• Option A: Cure Period: Tenant shall have [Number] days to cure any default after receiving written notice from Landlord.
• Late Fees: Tenant shall pay a late fee of [Late Fee Amount] for any rent payment that is not received within [Number] days of the due date.
• Interest: Late payments shall accrue interest at the rate of [Interest Rate] per annum.

Dispute Resolution: Any dispute arising out of or relating to this Lease shall be resolved through [Dispute Resolution Method, e.g., Mediation, Arbitration] in [County Name] County, Arkansas.

• Option A: Arkansas Commercial Arbitration.
• Option B: Jurisdiction: Arkansas court jurisdiction (specifically identifying appropriate Arkansas county and court).

Governmental Compliance: Tenant shall be responsible for obtaining all necessary permits and licenses to operate its business on the Premises, including a certificate of occupancy and any required signage permits.

Disclosures:

• Lead-Based Paint Disclosure: [Required Disclosure for pre-1978 Properties - Separate form required.]
• Flood Zone Status: [Disclosure of Flood Zone Status, if applicable].
• Asbestos Disclosure: [Disclosure of Asbestos or other Material Hazard, if applicable].

Self-Help Eviction and Landlord Lien: Landlord shall have the right to exercise all self-help eviction and lockout procedures and landlord lien rights available under Arkansas law.

Relationship of Parties: This Lease does not create a partnership or joint venture between Landlord and Tenant.

Brokerage: [Brokerage Information, if applicable].

Notices: All notices 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 parties at the addresses set forth above.

• Landlord Notice Address: [Landlord Notice Address]
• Tenant Notice Address: [Tenant Notice Address]

Boilerplate Provisions:

• Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Entire Agreement: This Lease constitutes the entire agreement between the parties 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 Arkansas.
• Amendment: This Lease may be amended only by a writing signed by both parties.
• 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.
• Electronic Signatures: This Lease may be executed using electronic signatures, which shall be deemed valid and binding.
• Force Majeure: Neither party shall be liable for any failure to perform its obligations under this Lease due to causes beyond its reasonable control, including acts of God, war, or terrorism.

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

[Landlord Name/Entity Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title, if applicable]

[Tenant Name/Entity Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title, if applicable]