Delaware warehouse lease agreement template

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How Delaware warehouse lease agreement Differ from Other States

Delaware requires all commercial lease agreements exceeding one year to be in writing, ensuring compliance with state Statute of Frauds.
There is no legal limit on security deposits for warehouses in Delaware, unlike some states which impose specific maximums.
Delaware has specific laws regarding environmental disclosures, requiring lessor disclosure of any known hazardous conditions on the property.

Frequently Asked Questions (FAQ)

Q: Is a written lease required for warehouse rentals in Delaware?

A: Yes, Delaware law requires written leases for warehouse rentals exceeding one year to be legally enforceable.
Q: Does Delaware regulate commercial warehouse security deposits?

A: Delaware does not cap security deposits for commercial leases, but landlords must specify terms clearly in the lease.
Q: Are there specific disclosure requirements for Delaware warehouse leases?

A: Yes, landlords must disclose any known environmental hazards on the property as part of the lease process.

HTML Code Preview

Delaware Warehouse Lease Agreement

This Delaware Warehouse Lease Agreement (the “Agreement”) is made and effective as of this [Date] by and between:

[Landlord Full Legal Name], a [Landlord Entity Type, e.g., Delaware LLC] with a principal business address at [Landlord Address], hereinafter referred to as “Landlord,”
and
[Tenant Full Legal Name], a [Tenant Entity Type, e.g., Delaware Corporation] with a principal business address at [Tenant Address], hereinafter referred to as “Tenant.”

1. Leased Premises

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

[Full Physical Address of Warehouse, Including Street, City, State, Zip Code]
[Legal Description of Property]
Total Square Footage: [Square Footage]
Ceiling Height: [Ceiling Height]
Loading Docks: [Number of Docks], [Dock Dimensions]
Drive-In Doors: [Number of Doors], [Door Dimensions]
Racking/Shelving Systems: [Description of Existing Systems, if any]
Sprinkler/Fire Suppression Systems: [Type of System]
Floor Load Capacity: [Pounds per Square Foot]
Temperature Controls/Refrigeration: [Description of Systems, if any]
Office/Mezzanine Space: [Location and Square Footage]
Yards/Parking: [Description of Designated Areas]
Common Areas: [Description and Restrictions on Use]
Easements/Access: [Description of Rights and Obligations]

2. Zoning and Permitted Use

Option A: The Premises are currently zoned [Zoning Designation] under Delaware and [Municipality] codes, which permits warehouse/industrial use. Landlord represents and warrants that the intended use of the Premises as a warehouse for [Description of Intended Use] is permitted under such zoning.
Option B: The Premises are currently zoned [Zoning Designation]. Tenant is responsible for verifying that its intended use is permitted and for obtaining any necessary permits or approvals. Landlord makes no warranty as to permitted use.

3. Permitted Use and Restrictions

Permitted Use: Warehousing, distribution, and [Other Permitted Uses].
Prohibited Uses:
- Option A: No hazardous materials operations are permitted without prior written consent of the Landlord and compliance with all applicable Delaware and federal regulations.
- Option B: No storage of non-approved substances, illegal activities, or retail activities are permitted.
Subletting/Assignment:
- Option A: Tenant shall not sublet or assign this Lease without the prior written consent of Landlord, which consent shall not be unreasonably withheld.
- Option B: Subletting and assignment are strictly prohibited.

4. Lease Term

Commencement Date: [Date]
Expiration Date: [Date]
Term Length: [Number] years
Option to Renew:
- Option A: Tenant shall have the option to renew this Lease for [Number] additional [Years/Months] subject to providing Landlord with written notice at least [Number] days prior to the expiration of the initial term. Renewal terms will be at fair market value.
- Option B: There is no option to renew.
Early Termination:
- Option A: Tenant may terminate this lease early by providing [Number] months written notice and paying a termination fee of [Dollar Amount].
- Option B: Early termination is not permitted.

5. Rent and Security Deposit

Base Rent: [Dollar Amount] per month
Rent Calculation: [Per Square Foot/Gross/Triple-Net]
Rent Increases: [Description of Schedule]
Security Deposit: [Dollar Amount]
Payment Method: [Description of Acceptable Methods]
Grace Period: [Number] days
Late Charge: [Dollar Amount or Percentage]
Interest on Late Payments: [Percentage] per annum

6. Operating Expenses

Tenant shall be responsible for the following operating expenses:

Building Insurance: [Percentage or Fixed Amount]
CAM Charges: [Description of Included Services]
Snow Removal: [Responsibility]
Landscaping: [Responsibility]
Utilities: [Description of Responsibility and Metering]

7. Tenant Improvements

Option A: Tenant may make improvements with Landlord's prior written approval. All improvements shall adhere to Delaware building permit requirements.
Option B: Tenant improvements are prohibited.
Restoration:
- Option A: Tenant shall restore the Premises to its original condition at the termination of the Lease, unless otherwise agreed upon in writing.
- Option B: Tenant will not be required to restore the premises.

8. Maintenance and Repair

Landlord Responsibilities:
- Roof: [Responsibility]
- Walls: [Responsibility]
- Systems: [Responsibility]
Tenant Responsibilities:
- Floors: [Responsibility]
- Dock Doors: [Responsibility]
- Pest Control: [Responsibility]

9. Insurance

Tenant shall maintain the following insurance coverage:
- General Liability: [Dollar Amount]
- Property Insurance: [Dollar Amount]
Landlord shall be named as an additional insured.
Waiver of Subrogation: [Description of Waiver]

10. Casualty

In the event of a casualty, rent shall abate until the Premises are restored. Landlord shall use commercially reasonable efforts to restore the Premises.

Business Continuity: [Description of Requirements]

11. Compliance

Tenant shall comply with all applicable Delaware and federal laws and regulations, including fire codes, environmental regulations, and OSHA requirements.

12. Indemnification

Tenant shall indemnify and hold harmless Landlord from any and all claims arising from Tenant's use of the Premises.

13. Access

Landlord shall have the right to access the Premises for inspection and maintenance with reasonable notice, except in cases of emergency.

14. Signage

Tenant shall have the right to install signage subject to Landlord's approval and compliance with local ordinances.

15. Equipment

Tenant shall be responsible for the installation and operation of its own equipment, subject to Landlord's approval and compliance with applicable codes.

16. Move-In/Move-Out

Landlord shall deliver the Premises in broom-clean condition. Tenant shall return the Premises in the same condition, reasonable wear and tear excepted.

Security Deposit Return: Subject to Delaware law.

17. Dispute Resolution

Any disputes shall be resolved through negotiation, mediation, and if necessary, arbitration in Delaware.
Governing Law: Delaware

18. Default and Remedies

Events of Default: [Description of Events]
Landlord Remedies: [Description of Remedies]
Tenant Remedies: [Description of Remedies]

19. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations due to force majeure events.

20. Transportation Access

[Description of any Railroad or Transportation Access Rights]

21. Environmental Indemnity

Tenant shall comply with all environmental regulations and shall indemnify Landlord from any environmental liabilities arising from Tenant's use of the Premises.

22. Tax Responsibility