Delaware retail lease agreement template

Delaware Retail Lease Agreement

This Delaware Retail Lease Agreement (the “Lease”) is made and entered into as of [Date of Execution], by and between:

• [Landlord Legal Name], a [Landlord Entity Type, e.g., Delaware LLC], with a principal place of business at [Landlord Physical Address] and a mailing address at [Landlord Mailing Address] (hereinafter referred to as “Landlord”), and, if applicable, a registered agent in Delaware: [Landlord's Registered Agent Name] at [Landlord's Registered Agent Address];

Contact Information: [Landlord Phone Number], [Landlord Email Address];

• [Tenant Legal Name], a [Tenant Entity Type, e.g., Delaware Corporation], with a principal place of business at [Tenant Physical Address] and a mailing address at [Tenant Mailing Address] (hereinafter referred to as “Tenant”), and, if applicable, a registered agent in Delaware: [Tenant's Registered Agent Name] at [Tenant's Registered Agent Address];

Contact Information: [Tenant Phone Number], [Tenant Email Address].

1. Premises

• The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises (the “Premises”) located at [Property Address], Suite/Unit Number [Suite/Unit Number], Delaware.

• The Premises are further described as follows:

• Approximate square footage: [Square Footage] square feet.

• Dimensions: [Dimensions].

• Frontage: [Frontage Description].

• Location within Center/Mall/Building: [Location Description].

• Parking:

• Customer parking spaces: [Number].

• Employee parking spaces: [Number].

• Designated delivery areas: [Description].

• Signage:

• Tenant shall have the right to install signage as detailed in Exhibit [Exhibit Letter].

• Common Areas:

• The Tenant shall have the right to use the common areas of the property as defined in Exhibit [Exhibit Letter].

• Restricted areas: [Description of Restricted Areas].

2. Use

• Permitted Use: The Premises shall be used solely for the purpose of [Detailed Description of Permitted Retail Use], including, but not limited to, [Specific Products/Services].

• Restrictions:

• Option A: The Tenant shall not use the Premises for any purpose other than the Permitted Use.

• Option B: The Tenant shall not use the Premises for the following prohibited uses: [List of Prohibited Uses, e.g., adult entertainment, marijuana sales].

• Exclusive Use:

• Option A: Landlord grants Tenant exclusive use for [Specific Product/Service].

• Option B: Landlord does not grant Tenant exclusive use.

• Co-Tenancy: Subject to the Co-Tenancy requirements outlined in Exhibit [Exhibit Letter].

3. 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.

• Holdover:

• Option A: Any holdover shall be on a month-to-month basis at [Percentage]% of the then-current monthly rent.

• Option B: Any holdover shall require prior written consent from the landlord.

• Renewal Options:

• Option A: 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 election to renew at least [Number] days prior to the Expiration Date.

• Option B: There are no renewal options.

4. Rent

• Base Rent:

• Annual Base Rent: [Annual Amount]

• Monthly Base Rent: [Monthly Amount]

• Rent Abatement:

• Option A: Tenant shall receive a rent abatement period of [Number] months commencing on the Commencement Date.

• Option B: There is no rent abatement.

• Percentage Rent:

• Option A: In addition to the Base Rent, Tenant shall pay to Landlord percentage rent equal to [Percentage]% of Gross Retail Sales exceeding [Dollar Amount].

• Reporting: Tenant shall provide Landlord with monthly sales reports by [Date].

• Audit Rights: Landlord shall have the right to audit Tenant's sales records upon [Number] days' notice.

• Option B: There is no percentage rent.

• Rent Escalation:

• Option A: The Base Rent shall increase by [Percentage]% annually on each anniversary of the Commencement Date.

• Option B: The Base Rent shall increase based on the Consumer Price Index (CPI) as published by the U.S. Department of Labor.

• Option C: There is no rent escalation.

• Security Deposit:

• The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount]. The security deposit shall be held by the Landlord as security for the Tenant's performance of its obligations under this Lease. Landlord shall return the security deposit, less any deductions for damages or unpaid rent, within [Number] days after the termination of this Lease and Tenant's vacation of the Premises, in accordance with Delaware law. Interest on security deposit: [Interest terms or if none].

5. Additional Charges

• Common Area Maintenance (CAM): Tenant shall pay its pro rata share of CAM expenses, calculated as [Calculation Method], which is currently estimated to be [Dollar Amount] per month.

• Property Taxes: Tenant shall pay its pro rata share of property taxes, calculated as [Calculation Method].

• Insurance: Tenant shall maintain insurance coverage as described in Exhibit [Exhibit Letter], naming Landlord as an additional insured. Minimum coverage amounts: [Coverage Amounts].

• Utilities:

• Option A: Tenant shall be responsible for all utility costs associated with the Premises, including water, sewer, electricity, and gas. Meter specifics: [Meter Details].

• Option B: Landlord shall be responsible for [Utilities Landlord Pays] and Tenant shall be responsible for [Utilities Tenant Pays].

• HVAC Maintenance: [Landlord/Tenant] shall be responsible for HVAC maintenance.

• Trash Removal: [Landlord/Tenant] shall be responsible for trash removal.

• Merchant Association Dues: If applicable, Tenant shall pay merchant association dues in the amount of [Dollar Amount].

6. Build-Out and Alterations

• Tenant Improvement Allowance:

• Option A: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount].

• Option B: There is no tenant improvement allowance.

• Work Letter: The build-out and alterations shall be governed by the Work Letter attached as Exhibit [Exhibit Letter].

• Permits: Tenant shall be responsible for obtaining all necessary permits and approvals for any alterations or improvements, in compliance with Delaware ADA, zoning, and fire code.

7. Maintenance and Repairs

• Landlord's Responsibilities: Landlord shall be responsible for maintaining and repairing the roof, structure, and common areas of the property.

• Tenant's Responsibilities: Tenant shall be responsible for maintaining and repairing the interior of the Premises, including the storefront, systems (HVAC, electrical, plumbing, sprinkler, grease trap), and cleaning.

• Repair Timetables: All repairs shall be completed within a reasonable timeframe, not to exceed [Number] days, unless otherwise agreed upon.

8. Property Damage and Condemnation

• In the event of property damage or condemnation, the provisions of Exhibit [Exhibit Letter] shall apply.

• Restoration: [Landlord/Tenant] will be responsible for restoration based on the damage caused.

• Rent Abatement: In the event of damage, the rent shall be abated until [Condition for Abatement].

9. Co-Tenancy and Exclusive Use

• Co-Tenancy: The co-tenancy requirements are outlined in Exhibit [Exhibit Letter]. Remedies for failure to comply: [Remedies].

• Exclusive Use: The exclusive use rights, if any, are outlined in Exhibit [Exhibit Letter].

10. Hazardous Materials

Tenant shall not store or use any hazardous materials on the Premises without Landlord's prior written consent and in compliance with all applicable laws, including the Delaware Hazardous Substance Cleanup Act. Tenant shall indemnify Landlord for any environmental liability.

11. Compliance with Laws

Tenant shall comply with all applicable Delaware, county, and municipal laws, including retail licensing, health and safety, employment law, fire/life safety codes, accessibility, hours-of-operation, and local business tax requirements.

12. Operation of Business

• Initial Opening: Tenant shall open for business no later than [Date].

• Continuous Operation:

• Option A: Tenant shall continuously operate its business during normal business hours.

• Option B: Tenant shall operate during the following hours: [Specific Hours].

13. Landlord's Right of Entry

Landlord shall have the right to enter the Premises for inspection, maintenance, and emergency purposes upon reasonable notice, except in cases of emergency. Notice period: [Number] hours, unless otherwise specified.

14. Signage and Advertising

Tenant shall have the right to install signage as detailed in Exhibit [Exhibit Letter], subject to Landlord's approval and all applicable local permits.

15. Surrender of Premises

Upon termination of this Lease, Tenant shall surrender the Premises in broom-clean condition, remove all personal property, and restore the storefront to its original condition, reasonable wear and tear excepted. Keys and access cards shall be returned to the Landlord. Security Deposit shall be returned based on [Number] days, as per Delaware law.

16. Default and Remedies

• Tenant Default: Tenant shall be in default upon failure to pay rent or other charges when due, or upon failure to comply with any other term of this Lease.

• Landlord Default: Landlord shall be in default upon failure to comply with any term of this Lease.

• Notice and Cure Periods: The defaulting party shall have [Number] days to cure the default after written notice from the non-defaulting party, as per Delaware Landlord Tenant Code Chapter 57 (Commercial Leases).

• Eviction: Landlord may initiate eviction proceedings in accordance with Delaware law.

17. Indemnification

Tenant shall indemnify and hold harmless Landlord from and against any and all claims, losses, damages, liabilities, and expenses arising out of Tenant's use of the Premises. Delaware law governs the interpretation of this clause.

18. Dispute Resolution

Any dispute arising out of this Lease shall be resolved through negotiation and mediation. If mediation fails, the dispute shall be resolved in the [Chancery/Superior] Court of the State of Delaware.

• Option A: Binding arbitration in accordance with Delaware law.

• Option B: No arbitration.

19. Representations and Warranties

Each party represents and warrants that it has the authority to enter into this Lease and that this Lease constitutes a valid and binding agreement.

20. Exhibits

The following exhibits are attached to and incorporated into this Lease:

• Exhibit A: Tenant Improvement Plans

• Exhibit B: Landlord Rules and Regulations

• Exhibit C: Signage Criteria

• Exhibit D: Insurance Requirements

• Exhibit E: Exclusive/Exclusion Lists

• Exhibit F: Legal Disclosures

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

[Landlord Legal Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

[Tenant Legal Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]