Delaware commercial lease agreement template

Delaware Commercial Lease Agreement

This Commercial Lease Agreement (this “Lease”) is made and entered into as of this [Date] day of [Month], [Year], by and between [Landlord's Full Legal Name], a [Landlord's Entity Type, e.g., Delaware LLC], with a business address of [Landlord's Business Address] (hereinafter referred to as "Landlord"), and [Tenant's Full Legal Name], a [Tenant's Entity Type, e.g., Delaware Corporation], with a business address of [Tenant's Business Address] (hereinafter referred to as "Tenant").

• Landlord Contact Information:
  • Address: [Landlord's Business Address]
  • Phone: [Landlord's Phone Number]
  • Email: [Landlord's Email Address]
• Tenant Contact Information:
  • Address: [Tenant's Business Address]
  • Phone: [Tenant's Phone Number]
  • Email: [Tenant's Email Address]

1. Leased Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the following described premises (the "Premises"):

• Option A: [Legal Property Description], located at [Physical Address], including Unit/Suite number [Unit/Suite Number]. The Premises consists of approximately [Rentable Square Footage] rentable square feet and [Usable Square Footage] usable square feet.
• Option B: Designated common areas include [Description of Common Areas]. Tenant shall have exclusive use of the following spaces: [Description of Exclusive Use Spaces].

A floor plan/site map of the Premises is attached hereto as Exhibit A and incorporated herein by reference. [Attach Floor Plan/Site Map as Exhibit A]

2. Permitted Use

The Premises shall be used and occupied by Tenant solely for the following purpose:

• Option A: [Specific Use of Premises, e.g., Retail Sales of Clothing].
• Option B: General business office use, provided such use is in compliance with all applicable zoning ordinances and local laws. Tenant shall not use the Premises for any unlawful purpose or in any manner that violates any applicable federal, state, or local laws, regulations, or ordinances. Prohibited uses include: [List of Prohibited Uses].

Tenant is responsible for complying with all applicable zoning and local ordinances.

3. Lease Term

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 A: Fixed Term. The Lease shall be for a fixed term as specified above.
• Option B: Renewal/Extension.
  • The Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration of Renewal Term] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term.
  • Automatic Renewal: This lease shall automatically renew for successive terms of one year unless either party provides written notice of termination at least [Number] days prior to the end of the then current term.
  • Conversion to Month-to-Month: Upon expiration of the initial term, this lease shall convert to a month-to-month tenancy terminable by either party with [Number] days written notice.
• Option C: Early Termination. Tenant shall have the right to terminate this lease early by providing [Number] months written notice and paying a termination fee of [Dollar Amount].

4. Rent

The Tenant shall pay Landlord rent as follows:

• Option A: Base Rent. The base rent shall be [Dollar Amount] per month.
• Option B: Calculation Method. The base rent shall be calculated at [Dollar Amount] per square foot per year, for a total monthly rent of [Dollar Amount].

The rent commencement date shall be [Rent Commencement Date]. Rent shall be payable [Payment Frequency, e.g., monthly], in advance, on the [Day] day of each [Time Period, e.g., month], at [Payment Address] or such other place as Landlord may designate in writing.

• Rent Escalation:
  • Annual Percentage Increase: The base rent shall increase by [Percentage]% per year.
  • CPI Index Adjustment: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [CPI Area], as published by the Bureau of Labor Statistics.
• Late Payment: If rent is not received within [Number] days of the due date, a late fee of [Dollar Amount or Percentage]% shall be charged. Interest shall accrue on overdue amounts at a rate of [Percentage]% per annum.
• Acceptable Payment Methods: [List Acceptable Payment Methods, e.g., Check, Wire Transfer, ACH].

5. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount].

• The security deposit shall be used to cover damages to the Premises, unpaid rent, or other amounts due under this Lease. Landlord may withhold from the security deposit only such amounts as are reasonably necessary to remedy Tenant's defaults.
• Landlord shall return the security deposit to Tenant, less any deductions, within [Number] days after the termination of this Lease and Tenant's surrender of the Premises, along with a written itemized statement of any deductions made. This is compliant with Delaware law regarding commercial security deposits.

6. Lease Type and Operating Expenses

The parties agree that this is a [Lease Type, e.g., Triple Net (NNN), Gross, or Modified Gross] Lease.

• Option A: Triple Net (NNN) Lease. Tenant shall be responsible for all utilities, property taxes, insurance, and common area maintenance (CAM)/operating expenses. Tenant shall pay its pro rata share of CAM expenses within [Number] days of receiving an invoice from Landlord. Reconciliation of CAM expenses shall occur annually.
• Option B: Gross Lease. Landlord shall be responsible for all utilities, property taxes, insurance, and common area maintenance (CAM)/operating expenses.
• Option C: Modified Gross Lease. Landlord shall be responsible for [List of Landlord Responsibilities], and Tenant shall be responsible for [List of Tenant Responsibilities].

Specific expense allocations are detailed in Exhibit B. [Attach Expense Allocation Details as Exhibit B]

7. Maintenance and Repair

Landlord shall be responsible for maintaining and repairing the following: [List of Landlord Responsibilities, e.g., roof, structural elements]. Tenant shall be responsible for maintaining and repairing the following: [List of Tenant Responsibilities, e.g., interior, fixtures].

• HVAC: Responsibility for HVAC maintenance and repair shall be borne by [Landlord/Tenant].
• Prompt Notice: Tenant shall promptly notify Landlord of any damage to the Premises.
• Move-Out Condition: Tenant shall return the Premises in the same condition as received, ordinary wear and tear excepted.

8. Tenant Improvements and Alterations

• Option A: Tenant Improvements. Landlord shall provide a tenant improvement allowance of [Dollar Amount]. Tenant shall be responsible for obtaining all necessary permits and approvals for any alterations.
• Option B: Turnkey Buildout. Landlord shall complete a turnkey buildout of the Premises according to the specifications attached as Exhibit C. [Attach Buildout Specifications as Exhibit C]
• Ownership of Improvements: All improvements shall become the property of the Landlord upon termination of this Lease, except for trade fixtures.
• Restoration Requirements: Upon termination of this lease, the Tenant shall [restore/not restore] the premises to its original condition, with a detailed listing of restoration expectations to be attached.
• Removal of Trade Fixtures: Tenant may remove its trade fixtures at the end of the lease term, provided that Tenant repairs any damage caused by such removal.

9. Insurance

Tenant shall maintain the following insurance coverages:

• Commercial General Liability insurance with a minimum limit of [Dollar Amount] per occurrence.
• Property insurance covering the full replacement cost of Tenant's personal property and improvements.
• Business interruption insurance.

Landlord shall maintain property insurance covering the Premises.

• Additional Insureds: Tenant shall name Landlord as an additional insured on its Commercial General Liability policy. Landlord shall name Tenant as an additional insured on its property insurance policy to the extent of Tenant’s insurable interest.
• Waiver of Subrogation: Both parties hereby waive any rights of subrogation against the other party.
• Proof of Insurance: Tenant shall provide Landlord with certificates of insurance evidencing the required coverages.

10. Use and Compliance with Laws

Tenant shall comply with all applicable federal, state, and local laws, regulations, and ordinances, including the Americans with Disabilities Act (ADA) and all applicable environmental laws.

• Hazardous Materials: Tenant shall not store or use any hazardous materials on the Premises without Landlord's prior written consent.

11. Indemnification and Hold Harmless

Tenant shall indemnify and hold Landlord harmless from any and all claims, liabilities, damages, costs, and expenses arising out of Tenant's use of the Premises, except to the extent caused by Landlord's negligence or willful misconduct. Landlord shall indemnify and hold Tenant harmless from any and all claims, liabilities, damages, costs, and expenses arising out of Landlord's negligence or willful misconduct.

• Limitation of Liability: Landlord's liability shall be limited to the Landlord's interest in the property.

12. Assignment and Subletting

• Option A: Assignment Permitted. Tenant may assign this Lease or sublet the Premises with Landlord's prior written consent, which consent shall not be unreasonably withheld.
• Option B: Assignment Prohibited. Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent.
• Landlord's Right to Recapture: Landlord shall have the right to recapture the Premises upon Tenant's request to assign or sublet.

13. Default and Remedies

The following shall constitute events of default by Tenant:

• Failure to pay rent when due.
• Failure to comply with any other term or condition of this Lease.

Upon the occurrence of an event of default, Landlord shall have the following remedies:

• Termination of the Lease.
• Re-entry and repossession of the Premises.
• Acceleration of rent.
• Monetary damages.

• Notice and Cure: Landlord shall provide Tenant with written notice of any default and a reasonable opportunity to cure such default. The cure period for non-payment of rent shall be [Number] days, and the cure period for other defaults shall be [Number] days.
• Delaware-Specific Remedies: Landlord may pursue all remedies available under Delaware law, including [specify Delaware-specific remedies if applicable, e.g., summary possession].
• Tenant's Right to Remedy: Tenant shall have the right to remedy any default within the specified cure period.

14. Options and Rights of First Refusal/Offer

• Option A: Right of First Refusal. If Landlord decides to sell the Property, Tenant shall have a right of first refusal to purchase the Property on the same terms and conditions as offered to a third party.
• Option B: Right of First Offer. If landlord decides to sell the Property, Tenant will receive an offer to buy the property before it is placed on the open market.
• Option C: Expansion Option. Tenant shall have the option to lease additional space in the Building, if available, on terms to be negotiated.

15. Surrender and Restoration

Upon the expiration or termination of this Lease, Tenant shall surrender the Premises to Landlord in the condition required under section 7. Tenant shall remove all of its personal property from the Premises.

• Restoration Provisions: Tenant shall [restore/not restore] the premises to their original condition, reasonable wear and tear excepted. Landlord's written requirements will be provided [Timeframe] before lease expiration date.

16. Estoppel Certificate

Each party shall, within [Number] days after written request by the other party, execute and deliver an estoppel certificate certifying the status of this Lease. Failure to provide an estoppel certificate within the specified timeframe shall constitute a default.

17. 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. If the Premises are taken by eminent domain, this Lease shall terminate.

• Rent Abatement: Rent shall abate during any period in which the Premises are untenantable due to casualty.
• Condemnation: In the event of a partial condemnation that does not render the Premises untenantable, rent shall be reduced proportionately.
• Delaware Handling of Condemnation: [Include any Delaware-specific rules or procedures regarding condemnation]

18. Signage and Advertising

Tenant shall have the right to install signage on the Premises, subject to Landlord's approval and all applicable laws and regulations.

• Permits: Tenant shall be responsible for obtaining all necessary permits for its signage.
• Removal Obligations: Upon termination of this Lease, Tenant shall remove its signage and repair any damage caused by such removal.

19. Landlord Access

Landlord shall have the right to access the Premises for purposes of inspection, repair, or showing the Premises to prospective tenants or purchasers, upon providing Tenant with reasonable advance notice of at least [Number] hours, except in emergencies.

• Emergency Access: Landlord may enter the Premises without notice in the event of an emergency.

20. Quiet Enjoyment

Landlord warrants that Tenant shall have quiet enjoyment of the Premises during the term of this Lease, provided that Tenant is not in default.

21. Parking and Building Services

Landlord shall provide Tenant with [Number] parking spaces.

• Building Services: Landlord shall provide the following building services: [List Building Services, e.g., elevator, HVAC, janitorial]. Hours of operation are as follows: [Specify Hours].

22. Governing Law

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

• Delaware Statutes: The provisions of this Lease are subject to Delaware statutes governing commercial leases.
• Invalidity: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

23. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved by [Mediation/Arbitration/Litigation] in [City, State].

• Venue: The venue for any litigation shall be the courts of the State of Delaware.
• Waiver of Jury Trial: To the extent permitted by Delaware law, both parties waive their right to a jury trial.

24. Broker Representation

• Option A: Broker Involved. [Broker Name] represents [Landlord/Tenant]. [Party Responsible for Broker Fee] shall be responsible for paying the broker fee as outlined in a separate agreement.
• Option B: No Broker Involved. Neither party was represented by a broker in connection with this Lease. Both parties warrant that no undisclosed brokers exist.

25. Notices

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

• Email Notice: Notices may also be sent by email to [Landlord's Email Address] and [Tenant's Email Address], provided that a hard copy is also sent by one of the methods described above.

26. Americans with Disabilities Act (ADA)

Responsibility for ADA compliance is allocated to [Landlord/Tenant]. The [Landlord/Tenant] shall be responsible for any necessary accessibility improvements to the Premises.

27. Waivers, Amendments, and Entire Agreement

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. This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. This Lease may be amended only by a writing signed by both parties.

28. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease to the extent such delay or failure is caused by a force majeure event, such as natural disaster, war, or government regulation.

• Rental Abatement: Rent shall [abate/not abate] during the period of the force majeure event.

29. Personal Guarantee

• Option A: Personal Guarantee Required. This Lease is personally guaranteed by [Guarantor Name], residing at [Guarantor Address]. The Guarantor agrees to be jointly and severally liable for the Tenant's obligations under this Lease. See attached Guaranty Agreement as Exhibit D. [Attach Guarantee Agreement as Exhibit D]
• Option B: No Personal Guarantee. This Lease is not subject to a personal guarantee.

30. Environmental and Hazardous Materials

Tenant shall not use, store, or dispose of any hazardous materials on the Premises in violation of any applicable environmental laws. Tenant shall indemnify and hold Landlord harmless from any and all claims, liabilities, damages, costs, and expenses arising out of Tenant's use or disposal of hazardous materials.

• Environmental Compliance: Tenant shall comply with all applicable Delaware environmental laws and regulations.

31. Landlord Liens and Security Interests

Landlord [does/does not] have a lien or security interest in Tenant's personal property located on the Premises to secure Tenant's obligations under this Lease, in compliance with Delaware law.

32. Bankruptcy and Insolvency

If Tenant becomes bankrupt or insolvent, Landlord shall have the right to terminate this Lease and pursue all available remedies under Delaware law.

33. Miscellaneous

• Gender: Words of any gender used in this Lease shall be deemed to include any other gender, and words in the singular shall be deemed to include the plural and vice versa.
• 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 and delivered electronically and shall be binding on the parties as if it were an original signed document, in accordance with Delaware law.

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

Landlord:

____________________________

[Landlord's Full Legal Name]

By: ____________________________

[Landlord's Signature]

Title: [Landlord's Title]

Tenant:

____________________________

[Tenant's Full Legal Name]

By: ____________________________

[Tenant's Signature]

Title: [Tenant's Title]