Hawaii retail lease agreement template

Hawaii Retail Lease Agreement

This Hawaii Retail Lease Agreement ("Lease") is made and entered into as of this [Date of Execution], by and between [Landlord's Full Legal Name], a [Landlord's Business Entity Type, e.g., Hawaii corporation], with a principal place of business at [Landlord's Full Address] ("Landlord"), and [Tenant's Full Legal Name], a [Tenant's Business Entity Type, e.g., Hawaii LLC], with a principal place of business at [Tenant's Full Address] ("Tenant").

Premises

• The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Full Address of Retail Space], also known as Tax Map Key (TMK) number [TMK Number], consisting of approximately [Square Footage] square feet (the "Premises").
• The Premises are further described as [Detailed Description of Retail Space, e.g., Storefront on the ground floor, Suite 101, with frontage on Main Street].

Use of Premises

• The Premises shall be used and occupied solely for the purpose of operating a retail business specializing in [Specific Type of Retail Business, e.g., the sale of surfboards and related apparel].
• Tenant is permitted to sell the following products and services: [Detailed List of Allowed Products and Services].
• Tenant shall comply with all applicable Hawaii state and county zoning laws, business licensing requirements, Department of Health regulations (if applicable), and industry-specific regulations.
• Tenant shall not change the use of the Premises, assign this Lease, or sublet the Premises without the prior written consent of the Landlord, which consent may be withheld in Landlord's sole discretion.

Term

• The term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date].
• Option A: The Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term] each. To exercise this option, Tenant must provide written notice to Landlord at least [Number] months prior to the expiration of the then-current term.
• Option B: There is no option to renew this Lease.
• Option C: Renewal terms will be negotiated at fair market value prevailing at the time of renewal with written notification by Tenant [Number] months prior to Lease expiration.

Rent

• The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the [Day of the Month] of each month, commencing on [Date Rent Payments Begin]. Rent shall be paid to Landlord at [Payment Location] by [Preferred Method of Payment].
• The base rent is exclusive of Hawaii General Excise Tax (GET). Tenant shall pay GET at the then-current rate on all rent payments.
• 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 Honolulu, Hawaii. The adjustment will be calculated as follows: [Specific CPI Calculation Formula].
• Option C: Rent will be reset to Fair Market Value on [Date] based on appraisal by a certified appraiser agreed upon by Landlord and Tenant.
• In addition to base rent, Tenant shall be responsible for the following additional rent obligations:
  • Common Area Maintenance (CAM) charges, as calculated and billed by Landlord on a [Frequency, e.g., monthly, quarterly] basis. CAM charges shall include, but not be limited to, costs associated with maintaining common areas, parking lots, landscaping, and building security.
  • Reimbursement of real property taxes attributable to the Premises, prorated based on the Premises' square footage as a percentage of the total leasable area of the building/shopping center.
  • Option for Percentage Rent: Percentage rent equal to [Percentage]% of Tenant's gross sales exceeding [Dollar Amount] per year, payable [Frequency, e.g., monthly, quarterly] with a reconciliation at the end of each lease year. Gross sales shall be defined as [Definition of Gross Sales].

Security Deposit

• Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount].
• The security deposit shall be held by Landlord in accordance with Hawaii law.
• Landlord may use the security deposit to cover any damages to the Premises caused by Tenant, unpaid rent, or other obligations of Tenant under this Lease.
• The security deposit, less any deductions, shall be returned to Tenant within [Number] days after the expiration or termination of this Lease, provided that Tenant has surrendered the Premises in accordance with the terms of this Lease.

Utilities and Services

• Tenant shall be responsible for the cost of all utilities and services used or consumed at the Premises, including but not limited to electricity, water, sewer, trash removal, recycling, and pest control.
• Option A: Utilities are separately metered and billed directly to the Tenant.
• Option B: Utilities are not separately metered, and Tenant shall pay a pro rata share of the total utility costs for the building/shopping center, as determined by Landlord.
• Tenant shall comply with all applicable energy efficiency and sustainable building codes.

Improvements and Alterations

• Option A: Landlord shall provide a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.
• Option B: Landlord will provide the premises in "as is" condition.
• All improvements and alterations to the Premises shall be subject to Landlord's prior written approval. Tenant shall obtain all necessary permits and approvals for any improvements or alterations.
• All work shall be performed by licensed contractors and in compliance with all applicable building codes and regulations.
• At the expiration or termination of this Lease, Tenant shall [Choose one: a) restore the Premises to its original condition, b) remove all tenant improvements and personal property, or c) leave all improvements in place], at Tenant's sole cost and expense.

Signage

• Tenant shall have the right to install signage on the Premises, subject to Landlord's prior written approval and compliance with all applicable laws and regulations.
• All signage shall conform to Landlord's design guidelines and/or shopping center criteria.
• Tenant shall obtain all necessary permits and approvals for signage.
• Tenant is responsible for the maintenance of its signage.

Repair and Maintenance

• Landlord shall be responsible for maintaining the structural integrity of the building, including the roof, exterior walls, and major systems.
• Tenant shall be responsible for maintaining the interior of the Premises, including fixtures, glass, and routine cleaning.
• Tenant shall promptly report any necessary repairs to Landlord.
• In the event of an emergency requiring immediate repair, Landlord shall have the right to enter the Premises to make such repairs.

Access

• Landlord shall have the right to enter the Premises at reasonable times and upon reasonable notice for the purpose of inspection, making repairs, or showing the Premises to prospective tenants or purchasers.

Indemnification and Insurance

• Tenant shall indemnify and hold Landlord harmless from and against any and all claims, liabilities, damages, costs, and expenses arising out of Tenant's use of the Premises or Tenant's business operations.
• Tenant shall maintain liability insurance, property insurance, and fire and casualty insurance in amounts and with coverages satisfactory to Landlord.
• Tenant shall name Landlord as an additional insured on its liability insurance policy.

Casualty

• In the event of a fire, hurricane, flood, or other casualty that renders the Premises unusable, rent shall abate proportionally until the Premises are restored to a usable condition.
• If the Premises are not restored to a usable condition within [Number] days, either party may terminate this Lease.

Condemnation

• If the Premises are taken by eminent domain, this Lease shall terminate as of the date of taking.
• Tenant shall be entitled to receive compensation for the loss of its business and personal property.

Parking

• Tenant shall be entitled to [Number] parking stalls for use by its employees and customers.
• Option A: Parking shall be free of charge.
• Option B: Parking shall be subject to a parking fee of [Dollar Amount] per month per stall.
• Tenant shall comply with all parking rules and regulations established by Landlord.

Operating Rules

• Tenant shall comply with all operating rules and regulations established by Landlord for the building/shopping center.
• Tenant shall operate its business during the hours established by Landlord.
• Tenant shall not create any nuisance or disturbance that interferes with the quiet enjoyment of other tenants.

Regulated Uses

• If Tenant's business involves food service, alcohol sales, medical/recreational cannabis, or other regulated uses, Tenant shall obtain and maintain all necessary licenses and permits from the appropriate state and county agencies, including the Hawaii Department of Health and the liquor commission.
• Tenant shall comply with all applicable laws and regulations governing such uses.

Taxes

• Tenant shall comply with all applicable state and county tax requirements, including GET, TAT (if applicable), and personal property tax.
• Tenant shall provide Landlord with proof of tax compliance upon request.

Surrender of Premises

• Upon the expiration or termination of this Lease, Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted.
• Tenant shall remove all of its personal property and trade fixtures from the Premises.
• Tenant shall repair any damage caused by the removal of its personal property and trade fixtures.

Dispute Resolution

• Any dispute arising out of or relating to this Lease shall be resolved through negotiation, mediation, or binding arbitration in Honolulu, Hawaii.
• Hawaii law shall govern the interpretation and enforcement of this Lease.

Compliance with Laws

• Tenant shall comply with all applicable Hawaii state and county real estate and commercial statutes, landlord-tenant laws, local zoning and building codes, environmental, health, and fire safety ordinances.

Amendment

• This Lease may be amended only by a written instrument signed by both Landlord and Tenant.

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

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[Landlord's Full Legal Name]

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[Tenant's Full Legal Name]