Colorado commercial lease agreement template

Colorado Commercial Lease Agreement

This Commercial Lease Agreement ("Lease") is made and entered into as of this [Date], by and between [Landlord Name], a [Landlord Entity Type, e.g., corporation, LLC, individual], with a registered address at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type, e.g., corporation, LLC, individual], with a registered address at [Tenant Address] ("Tenant").

If applicable:

Property Manager: [Property Manager Name] with contact details: [Property Manager Contact Details].

Premises

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Street Address], Suite/Unit [Suite/Unit Number], Floor/Section [Floor/Section Location], in the City of [City], County of [County], State of Colorado, consisting of approximately [Square Footage] square feet (the "Premises").

Option B: The Premises includes the following specifications:

• Zoning: [Zoning Designation]
• Parking: [Number] parking spaces
• Signage: [Signage Description, e.g., one sign on the building facade]
• Access to Common Areas: [Description of Access Rights]
• Storage: [Description of Storage Space]
• Loading Docks: [Number and Type of Loading Docks]

Lease Term

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

Option B: Renewal Options:

• Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration of Renewal Term] each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the Expiration Date.

Option C: Early Termination:

• Tenant shall have the option to terminate this Lease early by providing [Number] months written notice and paying a termination fee of [Termination Fee Amount or Calculation].

Option D: Holdover:

• If Tenant remains in possession of the Premises after the Expiration Date without a written agreement, such holdover shall be deemed a month-to-month tenancy, terminable by either party upon [Number] days' written notice, and the rent shall be [Percentage]% of the then-current monthly rent.

Rent

Option A: Base Rent: The base rent for the Premises shall be [Dollar Amount] per year, payable in equal monthly installments of [Dollar Amount], due on the [Day] day of each month, beginning on the Commencement Date.

Option B: Rent Escalation:

• The base rent shall increase by [Percentage]% per year, commencing on the [Date] of each year during the term of this Lease.

Option C: 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] during each [Time Period, e.g., month, quarter, year].

Option D: Payment Method:

• Rent shall be payable by [Payment Method, e.g., check, wire transfer, electronic payment] to [Payee Name] at [Payee Address].

Option E: Security Deposit:

• Tenant shall deposit with Landlord a security deposit 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 Date, less any amounts necessary to cover damages to the Premises or unpaid rent.

Option F: Additional Rent:

• Triple Net (NNN) Charges: Tenant shall pay, as additional rent, Tenant’s pro rata share of all real property taxes, insurance premiums, and common area maintenance (CAM) expenses.
• CAM Fees: Tenant shall pay, as additional rent, Tenant's pro rata share of all costs and expenses incurred in connection with the operation, maintenance, and repair of the common areas of the property.
• Property Taxes: Tenant shall pay, as additional rent, Tenant's pro rata share of all real property taxes levied against the property.
• Insurance: Tenant shall pay, as additional rent, Tenant's pro rata share of all insurance premiums for the property.
• Utilities: Tenant shall be responsible for paying all utility charges for the Premises, including but not limited to electricity, gas, water, and sewer.

Option G: Late Fees and Interest:

• If rent is not received by Landlord within [Number] days after the due date, Tenant shall pay a late fee of [Dollar Amount] and interest on the overdue amount at a rate of [Percentage]% per annum.

Use of Premises

Option A: Permitted Use: The Premises shall be used solely for [Description of Permitted Use] and for no other purpose without the prior written consent of Landlord.

Option B: Prohibited Use: Tenant shall not use the Premises for any unlawful purpose or any purpose that violates any applicable zoning ordinances or other laws and regulations. Tenant is prohibited from [Description of Prohibited Use].

Option C: Hours of Operation: Tenant's hours of operation shall be [Days of Week] from [Start Time] to [End Time].

Option D: Exclusive Use: Landlord grants Tenant the exclusive right to operate a [Type of Business] business within the [Description of Area].

Maintenance and Repairs

Option A: Landlord's Obligations: Landlord shall be responsible for maintaining and repairing the roof, foundation, exterior walls, and common areas of the property.

Option B: Tenant's Obligations: Tenant shall be responsible for maintaining and repairing the interior of the Premises, including but not limited to all fixtures, equipment, and personal property.

Option C: HVAC, Plumbing, Electrical: Responsibility for maintenance and repair of HVAC, plumbing, and electrical systems:

• Landlord: [Landlord Responsibility Description]
• Tenant: [Tenant Responsibility Description]

Option D: Landscaping and Snow Removal: Responsibility for landscaping and snow removal:

• Landlord: [Landlord Responsibility Description]
• Tenant: [Tenant Responsibility Description]

Tenant Improvements

Option A: Tenant Improvement Allowance: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.

Option B: Alterations: Tenant shall not make any alterations or improvements to the Premises without the prior written consent of Landlord.

Option C: Restoration: Upon the Expiration Date or earlier termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.

Option D: Ownership of Improvements: All improvements made to the Premises by Tenant shall become the property of Landlord upon the Expiration Date or earlier termination of this Lease.

Assignment and Subletting

Option A: Tenant shall not assign this Lease or sublet the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld.

Option B: Landlord shall have the right to recapture the Premises if Tenant requests to assign this Lease or sublet the Premises.

Option C: Any assignment or subletting without Landlord's consent shall be void.

Insurance

Option A: Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate. Tenant shall also maintain property insurance covering Tenant's personal property and business interruption insurance.

Option B: Landlord shall maintain property insurance covering the building and common areas.

Option C: Waiver of Subrogation: Each party hereby waives any right of subrogation against the other party.

Indemnification

Option A: Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, damages, liabilities, costs, and expenses arising out of Tenant's use of the Premises or Tenant's breach of this Lease.

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

Default and Remedies

Option A: Tenant Default: The occurrence of any of the following shall constitute a default by Tenant: failure to pay rent when due; abandonment of the Premises; violation of any term or condition of this Lease.

Option B: Landlord Default: The occurrence of any of the following shall constitute a default by Landlord: failure to maintain the Premises as required by this Lease; violation of any term or condition of this Lease.

Option C: Remedies: Upon the occurrence of a default by either party, the non-defaulting party shall have all remedies available at law or in equity, including but not limited to termination of this Lease, reentry and repossession of the Premises, and recovery of damages.

Option D: Cure Period: The defaulting party shall have [Number] days after written notice of default to cure the default.

Security Deposit

Option A: The security deposit shall be held by Landlord in an interest-bearing account, with any interest accruing to the benefit of Landlord/Tenant (choose one).

Option B: Landlord may use the security deposit to cover any unpaid rent or damages to the Premises caused by Tenant.

Option C: Landlord shall return the security deposit to Tenant within [Number] days after the Expiration Date, less any amounts properly withheld.

Surrender and Holdover

Option A: Upon the Expiration Date or earlier termination of this Lease, Tenant shall surrender the Premises to Landlord in the same condition as when received, reasonable wear and tear excepted.

Option B: Any holdover by Tenant shall be deemed a month-to-month tenancy at a rental rate of [Percentage]% of the then-current monthly rent.

Environmental and Hazardous Materials

Option A: Tenant shall not use, store, or dispose of any hazardous materials on the Premises without the prior written consent of Landlord and in compliance with all applicable laws and regulations.

Option B: Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, damages, liabilities, costs, and expenses arising out of Tenant's use, storage, or disposal of hazardous materials on the Premises.

Option C: Landlord warrants that it has undertaken environmental testing on the property, and it has not discovered hazardous materials. Landlord, in its sole discretion, may test the property for hazardous materials.

Americans with Disabilities Act (ADA)

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

Option B: Landlord shall be responsible for complying with all applicable requirements of the Americans with Disabilities Act (ADA) with respect to the common areas of the property.

Casualty and Condemnation

Option A: If the Premises are damaged by fire or other casualty, Landlord shall repair the Premises within a reasonable time, and rent shall abate during the period of repair.

Option B: If the Premises are condemned, this Lease shall terminate, and Tenant shall be entitled to compensation for its leasehold interest.

Notices

Option A: 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 in the first paragraph of this Lease.

Representations and Warranties

Option A: Landlord represents and warrants that it has the right to lease the Premises and that the Premises are in compliance with all applicable laws and regulations.

Option B: Tenant represents and warrants that it has the right to enter into this Lease and that it will use the Premises in compliance with all applicable laws and regulations.

Legal Compliance

Option A: Tenant, at its sole cost and expense, shall comply with all applicable municipal, county, state and federal laws, ordinances and regulations affecting the Premises and the Tenant's use thereof.

Access

Option A: Landlord shall have the right to enter the Premises at reasonable times to inspect the Premises, make repairs, or show the Premises to prospective buyers or tenants.

Option B: Landlord shall provide Tenant with at least [Number] hours' notice prior to entering the Premises, except in cases of emergency.

Rules and Regulations

Option A: Tenant shall comply with all rules and regulations established by Landlord for the building and common areas.

Option B: Landlord may amend the rules and regulations from time to time, provided that such amendments are reasonable.

Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City], Colorado.

Option B: If mediation is unsuccessful, the dispute shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.

Option C: The prevailing party in any dispute shall be entitled to recover its reasonable attorney's fees and costs.

Governing Law

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

Successors and Assigns

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

Entire Agreement

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

Amendments

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

Waiver

No waiver of any provision of this Lease shall be effective unless in writing and signed by the waiving party.

Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by fire, earthquake, flood, or other natural disaster; strike, lockout, or other labor dispute; war, riot, or civil commotion; or other event beyond the reasonable control of the party.

Personal Guaranty

Option A: [Guarantor Name], residing at [Guarantor Address], personally guarantees the performance of Tenant's obligations under this Lease.

Colorado Specific Disclosures and Addenda

Option A: Radon Disclosure: (Include Colorado Radon Disclosure Addendum if applicable)

Option B: Lead-Based Paint Disclosure: (Include Lead-Based Paint Disclosure Addendum if the building was built before 1978)

Option C: Marijuana Related Business: (Include Addendum regarding restrictions on marijuana businesses if applicable)

Option D: Compliance with Colorado Non-Discrimination Laws

COVID-19/Pandemic Clause (Optional)

Option A: If the Tenant's business operations are substantially impacted by a pandemic or epidemic event, the Landlord and Tenant shall negotiate in good faith to determine any rent abatement or other accommodations during the event.

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

____________________________

[Landlord Name]

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[Tenant Name]