Hawaii commercial lease agreement template

Hawaii Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into as of this [Date], by and between [Lessor Name], whose address is [Lessor Address] (hereinafter referred to as "Landlord"), and [Lessee Name], whose address is [Lessee Address] (hereinafter referred to as "Tenant").

1. Identification of Parties

• Landlord:
  • Option A: An individual.
  • Option B: A [State] corporation.
  • Option C: A [State] limited liability company.
  • Option D: A partnership.
• Tenant:
  • Option A: An individual.
  • Option B: A [State] corporation.
  • Option C: A [State] limited liability company.
  • Option D: A partnership.

2. Leased Premises

• The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Property Address], Unit [Unit Number], consisting of approximately [Square Footage] square feet (the "Premises").
• The Premises includes the following appurtenant rights:
  • Option A: [Number] parking spaces, designated as spaces [Parking Space Numbers].
  • Option B: Storage area located at [Storage Area Location].
  • Option C: Use of common areas as defined in Exhibit A.
• Intended Use: The Premises shall be used for [Intended Use].

3. Lease Term and Options

• The Lease shall commence on [Start Date] and shall continue for a term of [Number] years/months (the "Term").
• Renewal Option:
  • Option A: Tenant shall have the option to renew this Lease for an additional term of [Number] years/months, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the Term. The rent for the renewal term shall be [Rent Amount] per month.
  • Option B: No renewal option.
• Early Termination:
  • Option A: Tenant shall have the right to terminate this lease early by paying a termination fee of [Dollar Amount]. The tenant must provide written notice of termination at least [Number] days prior to the termination date.
  • Option B: No early termination.
• Holding Over: Any holding over by Tenant after the expiration of the Term, with or without the consent of Landlord, shall be construed as a month-to-month tenancy, subject to all the terms and conditions of this Lease, except that the rent shall be increased by [Percentage]%.

4. Rent and Additional Charges

• The base rent shall be [Rent Amount] per month, payable in advance on the [Day] day of each month, commencing on [Start Date].
• Payment Method: Rent shall be paid by [Payment Method] to [Payee Name] at [Payee Address].
• Escalation Clause:
  • Option A: The base rent shall increase annually by [Percentage]%.
  • Option B: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [CPI Area].
  • Option C: No escalation clause.
• Late Fees: If rent is not received within [Number] days of the due date, a late fee of [Dollar Amount] shall be due.
• Returned Check Fee: A fee of [Dollar Amount] will be charged for any returned check.

5. Operating Expenses and Additional Rent

• Type of Lease:
  • Option A: Triple Net (NNN) Lease: Tenant shall pay, as additional rent, all property taxes, insurance premiums, common area maintenance (CAM) charges, and other operating expenses associated with the Premises and the Building.
  • Option B: Gross Lease: Landlord shall pay all property taxes, insurance premiums, and CAM charges.
  • Option C: Modified Gross Lease: Landlord shall pay property taxes and insurance premiums, and Tenant shall pay CAM charges.
• CAM Charges: If applicable, CAM charges shall be calculated based on Tenant's proportionate share of the Building's rentable area.
• Reconciliation: Landlord shall provide Tenant with an annual statement of actual operating expenses, and Tenant shall pay any deficiency or receive a credit for any overpayment.
• Auditing Rights: Tenant shall have the right to audit Landlord’s operating expense records upon [Number] days’ written notice.

6. Security Deposit

• Tenant shall deposit with Landlord a security deposit of [Dollar Amount].
• The security deposit may be used to cover any damages to the Premises, unpaid rent, or other amounts due under this Lease.
• Landlord shall return the security deposit, less any deductions, within [Number] days after the termination of this Lease and Tenant’s surrender of the Premises. Landlord shall provide an itemized statement of any deductions.
• Interest:
  • Option A: The security deposit shall accrue interest at the rate required by Hawaii law.
  • Option B: The security deposit shall not accrue interest.
• Escrow:
  • Option A: The security deposit will be held in an escrow account at [Bank Name], in compliance with Hawaii law.
  • Option B: The security deposit will not be held in an escrow account.

7. Permitted Use and Restrictions

• The Premises shall be used solely for [Permitted Use] and for no other purpose without the Landlord’s prior written consent.
• Exclusivity:
  • Option A: Landlord agrees not to lease any other space in the Building to a business that directly competes with Tenant’s business.
  • Option B: No exclusivity granted.
• Prohibited Uses: Tenant shall not use the Premises for any unlawful purpose or any purpose that creates a nuisance or violates any applicable laws or regulations.
• Change of Use: Any change of use requires Landlord’s prior written consent, which shall not be unreasonably withheld. Any change must comply with applicable zoning and regulatory approvals.

8. Assignment and Subletting

• Tenant shall not assign this Lease or sublet the Premises without Landlord’s prior written consent, which shall not be unreasonably withheld.
• Landlord’s consent shall be conditioned upon the proposed assignee or sublessee meeting Landlord’s reasonable financial and operational criteria.
• Recapture Rights:
  • Option A: Landlord shall have the right to recapture the Premises upon Tenant’s request to assign or sublet.
  • Option B: Landlord does not have recapture rights.
• Profit Sharing:
  • Option A: Landlord shall be entitled to [Percentage]% of any rent received by Tenant in excess of the rent due under this Lease for any sublease.
  • Option B: No profit sharing.

9. Maintenance and Repair Obligations

• Landlord shall be responsible for maintaining the structural components of the Building, including the roof, foundation, and exterior walls.
• Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, including all fixtures, equipment, and systems.
• HVAC:
  • Option A: Landlord shall maintain the HVAC system.
  • Option B: Tenant shall maintain the HVAC system.
• Capital Improvements:
  • Option A: Landlord shall be responsible for capital improvements.
  • Option B: Tenant shall be responsible for capital improvements.
• Compliance: Both parties shall comply with all applicable health and safety codes.

10. Insurance Requirements

• Tenant shall maintain commercial general liability insurance with minimum limits of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, naming Landlord as an additional insured.
• Tenant shall also maintain property insurance covering Tenant's personal property and improvements in the Premises.
• Landlord shall maintain property insurance covering the Building.
• Hurricane Insurance:
  • Option A: Tenant is responsible for securing hurricane insurance for their personal property.
  • Option B: Landlord is responsible for securing hurricane insurance for the entire building.
• Certificates: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage. Tenant will provide notice of cancellation immediately upon receipt.

11. Indemnification and Liability

• Tenant shall indemnify and hold Landlord harmless from any and all claims, damages, liabilities, and expenses arising out of Tenant’s use of the Premises.
• Landlord shall indemnify and hold Tenant harmless from any and all claims, damages, liabilities, and expenses arising out of Landlord’s negligence.
• Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant each waive any and all rights of recovery against the other for any loss or damage covered by insurance.

12. Compliance with Laws

• Tenant represents and warrants that its use of the Premises complies with all applicable local, state, and federal laws, including accessibility requirements, fire codes, and environmental laws.
• Landlord represents and warrants that the Premises are in compliance with all applicable laws and regulations.
• ADA Compliance: Tenant shall be responsible for complying with the Americans with Disabilities Act (ADA) with respect to its use of the Premises.

13. Environmental Provisions

• Tenant shall not use, store, or dispose of any hazardous materials on the Premises without Landlord’s prior written consent and in compliance with all applicable environmental laws.
• Tenant shall indemnify and hold Landlord harmless from any and all environmental liabilities arising out of Tenant’s use of the Premises.
• Inspections: Landlord shall have the right to conduct environmental inspections of the Premises upon reasonable notice.

14. Inspection Rights and Access

• Landlord shall have the right to enter the Premises upon reasonable notice for the purpose of inspection, repairs, or showing the Premises to prospective tenants or buyers.
• Emergency Entry: Landlord may enter the Premises without notice in the event of an emergency.

15. Alterations and Improvements

• Tenant shall not make any alterations or improvements to the Premises without Landlord’s prior written consent.
• Restoration:
  • Option A: All alterations and improvements shall become the property of Landlord upon the termination of this Lease.
  • Option B: Tenant shall be required to remove all alterations and improvements upon the termination of this Lease and restore the Premises to its original condition.

16. Signage and Advertising

• Tenant shall have the right to install signage on the exterior of the Premises, subject to Landlord’s approval and compliance with all applicable laws and regulations.
• All signage must be approved by the landlord prior to installation.
• Signage must adhere to municipal regulations and cultural sensitivities of the area.

17. Utilities and Essential Services

• Tenant shall be responsible for paying for all utilities consumed on the Premises, including water, sewer, electricity, gas, and telecommunications.
• Service Interruption: Landlord shall not be liable for any interruption of utilities or essential services.
• Water Rights: Tenant acknowledges Hawaii's water rights laws and agrees to conserve water usage.

18. Property Damage and Condemnation

• If the Premises are damaged by fire or other casualty, Landlord shall have the option to repair or restore the Premises.
• Rent Abatement: If the Premises are untenantable due to damage, rent shall abate until the Premises are restored.
• Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate. Tenant will receive its share of any settlement as required by law.
• Force majeure will not be applied in case of lava flow.

19. Default and Remedies

• Events of Default: The following shall constitute events of default: failure to pay rent, unauthorized use of the Premises, abandonment of the Premises, or breach of any other term or condition of this Lease.
• Cure Period: Tenant shall have [Number] days to cure any default after written notice from Landlord.
• Remedies: Upon default, Landlord shall have the right to terminate this Lease, re-enter the Premises, evict Tenant, and pursue any other available remedies at law or in equity.

20. Security Interests

• Landlord's Lien: Landlord shall have a lien on Tenant's personal property located on the Premises to secure the payment of rent and other obligations under this Lease. Landlord may file UCC filings.
• Subordination: This Lease shall be subordinate to any existing or future mortgages or deeds of trust encumbering the Building.

21. Option Clauses

• Right of First Refusal:
  • Option A: Tenant shall have the right of first refusal to purchase the Building.
  • Option B: No right of first refusal.
• Expansion Option:
  • Option A: Tenant shall have the option to lease additional space in the Building if it becomes available.
  • Option B: No expansion option.

22. Subordination, Non-Disturbance, and Attornment (SNDA)

• This Lease shall be subject and subordinate to all existing and future mortgages, deeds of trust, and other liens affecting the Premises or the Building, provided that Tenant receives a non-disturbance agreement from the mortgagee.
• Quiet Enjoyment: Landlord covenants that Tenant shall have quiet enjoyment of the Premises during the Term of this Lease.

23. Dispute Resolution

• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Hawaii.
• Mediation: Any dispute arising out of or relating to this Lease shall be resolved through mediation before resorting to litigation.
• Venue: Any legal action arising out of or relating to this Lease shall be brought in the state or federal courts located in [County Name] County, Hawaii.
• Attorney Fees: In the event of any litigation, the prevailing party shall be entitled to recover its reasonable attorney fees and costs.

24. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to any cause beyond its reasonable control, including but not limited to acts of God, war, government closures, pandemic, volcanic events, hurricanes, and tsunamis.

25. Notices and Communication

All notices and other communications 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 email to the addresses set forth above.

26. Estoppel Certificate

Tenant shall, within [Number] days after request by Landlord, execute and deliver to Landlord an estoppel certificate certifying the terms of this Lease and confirming that this Lease is in full force and effect.

27. Confidentiality

The terms of this Lease shall be kept confidential by both parties.

28. Brokerage

The parties represent and warrant that no broker or agent has been involved in this transaction, except for [Broker Name], who represents [Party Represented]. [Party Responsible] shall be responsible for paying the commission to [Broker Name].

29. Hawaii-Specific Disclosures

• State Land Lease:
  • Option A: The property is subject to a State of Hawaii land lease. The lease term expires on [Date].
  • Option B: The property is not subject to a State of Hawaii land lease.
• General Excise Tax (GET): Tenant shall be responsible for paying Hawaii's General Excise Tax (GET) on the rent due under this Lease.
• Cultural and Historical Protections: Tenant agrees to comply with the Native Hawaiian Historic Preservation Act and any special consent or notice requirements if the Premises include culturally sensitive lands.

30. Representations, Warranties, and Authority

Each party represents and warrants that it has the full power and authority to enter into this Lease and to perform its obligations hereunder.

31. Execution Counterparts and Electronic Signatures

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 shall be deemed original signatures.

32. Attachments and Incorporated Exhibits

• Exhibit A: Site Plan
• Exhibit B: Floor Plan
• Exhibit C: Rules and Regulations

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

____________________________
[Lessor Name], Landlord

____________________________
[Lessee Name], Tenant

(Notary Acknowledgment for Landlord)

State of Hawaii
County of [County Name]

On this [Day] day of [Month], [Year], before me personally appeared [Lessor Name], to me known to be the person described in and who executed the foregoing instrument, and acknowledged that he/she executed the same as his/her free act and deed.

____________________________
Notary Public
My commission expires: [Date]

(Notary Acknowledgment for Tenant)

State of Hawaii
County of [County Name]

On this [Day] day of [Month], [Year], before me personally appeared [Lessee Name], to me known to be the person described in and who executed the foregoing instrument, and acknowledged that he/she executed the same as his/her free act and deed.

____________________________
Notary Public
My commission expires: [Date]