Iowa commercial lease agreement template

Iowa Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and effective as of this [Date], by and between [Landlord Name], residing at [Landlord Address] ("Landlord"), and [Tenant Name], residing at [Tenant Address] ("Tenant").

1. Premises

The Landlord leases to the Tenant and the Tenant leases from the Landlord, the premises located at [Property Address, including Unit Number], consisting of approximately [Square Footage] square feet (the "Premises"). A legal description, if required, is: [Legal Description].

Common areas included:

• Option A: The Premises includes the following common areas and shared facilities: [List Common Areas, e.g., lobby, restrooms, parking lot].
• Option B: The Premises does not include any common areas or shared facilities.

2. Use of Premises

The Tenant shall use the Premises solely for the purpose of: [Permitted Use, e.g., retail sales, office space].

Restrictions on Use:

• Option A: The Tenant shall not use the Premises for any of the following purposes: [List of Prohibited Uses, e.g., residential, manufacturing]. The Tenant shall adhere to the following hours of operation: [Hours of Operation]. The Tenant shall not create any nuisance or disturb other tenants.
• Option B: There are no restrictions on the Tenant's use of the Premises, subject to compliance with applicable laws and regulations.

The Tenant shall comply with all applicable zoning laws, ordinances, and regulations related to the use of the Premises.

3. Lease Term

The term of this Lease shall commence on [Start Date] and shall expire on [End Date].

Option Periods:

• Option A: The Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Term] each, provided that the Tenant gives the Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the then-current term.
• Option B: The Tenant does not have an option to renew this lease.

Early Termination:

• Option A: The Tenant may terminate this lease early by providing [Number] months' notice and paying a termination fee of [Dollar Amount].
• Option B: There is no provision for early termination of this Lease.

4. Rent

The base rent for the Premises shall be [Dollar Amount] per [Month/Quarter/Year], payable in advance on the [Day] day of each [Month/Quarter/Year].

Payment Method:

• Option A: Rent shall be payable by [Payment Method, e.g., check, electronic transfer] to the Landlord at [Payment Address].
• Option B: Rent shall be payable according to the following instructions: [Detailed payment instructions].

Late Fees: If rent is not received within [Number] days of the due date, a late fee of [Dollar Amount or Percentage] shall be charged.

Rent Increases:

• Option A: The base rent shall increase by [Percentage]% annually, commencing on [Date].
• Option B: The rent shall be adjusted based on the Consumer Price Index (CPI) according to the following formula: [CPI Calculation Formula].
• Option C: There will be no rent increases during the term of this lease.

5. Security Deposit

The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount] as security for the Tenant's performance of its obligations under this Lease.

Permitted Deductions: The Landlord may deduct from the security deposit amounts necessary to repair damage to the Premises (excluding ordinary wear and tear), to cover unpaid rent, or to satisfy any other obligation of the Tenant under this Lease.

Return of Security Deposit: The Landlord shall return any remaining portion of the security deposit to the Tenant within [Number] days after the termination of this Lease and the Tenant's surrender of the Premises. Note: Iowa law does not regulate commercial security deposit return timeframes as strictly as residential.

6. Additional Expenses

Property Taxes:

• Option A: The Landlord shall be responsible for paying all property taxes.
• Option B: The Tenant shall be responsible for paying [Percentage]% of the property taxes.

Utilities:

• Option A: The Tenant shall be responsible for all utilities including: [List of Utilities, e.g., electricity, water, gas, sewage].
• Option B: The Landlord shall be responsible for all utilities including: [List of Utilities, e.g., electricity, water, gas, sewage].
• Option C: The Landlord shall pay for [List Utilities Landlord Pays], and the Tenant shall pay for [List Utilities Tenant Pays].

Insurance:

• Option A: The Landlord shall be responsible for maintaining property insurance.
• Option B: The Tenant shall be responsible for maintaining property insurance.

Repair and Maintenance: See clause 7 for details on maintenance responsibilities.

CAM (Common Area Maintenance) Fees:

• Option A: The Tenant shall pay CAM fees of [Dollar Amount] per [Month/Year]. The Landlord shall provide a detailed accounting of CAM expenses.
• Option B: There are no CAM fees associated with this lease.

7. Maintenance, Repairs, and Alterations

Routine Maintenance: The Tenant shall be responsible for routine maintenance of the Premises, including [List of Routine Maintenance Tasks, e.g., keeping the Premises clean, replacing light bulbs].

Repairs:

• Option A: The Landlord shall be responsible for major repairs to the Premises, including repairs to the roof, foundation, and structural components. The Tenant shall notify the Landlord promptly of any necessary repairs.
• Option B: The Tenant shall be responsible for all repairs to the Premises.

Alterations: The Tenant shall not make any alterations or improvements to the Premises without the Landlord's prior written consent, which shall not be unreasonably withheld.

Restoration: Upon termination of this Lease, the Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.

Landlord's Right of Entry: The Landlord shall have the right to enter the Premises at reasonable times for inspection or to make necessary repairs, provided that the Landlord gives the Tenant reasonable notice.

8. Insurance

The Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence.

The Tenant shall name the Landlord as an additional insured on its commercial general liability insurance policy.

The Tenant shall provide the Landlord with a certificate of insurance evidencing the required coverage.

Waiver of Subrogation:

• Option A: The Tenant and Landlord each waive any and all rights of recovery against the other for loss or damage to the extent covered by insurance.
• Option B: There is no waiver of subrogation included in this agreement.

9. Assignment and Subletting

• Option A: The Tenant shall not assign this Lease or sublet the Premises without the Landlord's prior written consent, which shall not be unreasonably withheld.
• Option B: The Tenant may assign this Lease or sublet the Premises with the Landlord's prior written consent, which may be withheld in the Landlord's sole discretion.
• Option C: The Tenant shall have the right to assign or sublet with written notice, but without the need for Landlord consent.

Recapture Rights:

• Option A: If the Tenant proposes to assign this Lease or sublet the Premises, the Landlord shall have the right to recapture the Premises by terminating this Lease.
• Option B: The Landlord does not have recapture rights.

10. Default and Remedies

Events of Default: The following shall constitute events of default under this Lease: (a) the Tenant's failure to pay rent when due; (b) the Tenant's failure to comply with any other term or condition of this Lease; (c) the Tenant's abandonment of the Premises.

Notice and Cure: If the Tenant defaults under this Lease, the Landlord shall give the Tenant written notice of the default and a period of [Number] days to cure the default.

Landlord's Remedies: If the Tenant fails to cure the default within the cure period, the Landlord shall have the right to terminate this Lease, re-enter the Premises, and pursue any other remedies available under Iowa law, including eviction.

Tenant's Remedies: In the event of Landlord's default, Tenant may pursue remedies under Iowa law.

Waiver of Damages:

• Option A: Neither party shall be liable to the other for consequential, incidental, or punitive damages.
• Option B: This clause is intentionally omitted and all available damages are available to each party.

11. Surrender of Premises and Holding Over

Upon termination of this Lease, the Tenant shall surrender the Premises to the Landlord in good condition, reasonable wear and tear excepted, and shall remove all of its personal property and trade fixtures.

Holdover: If the Tenant remains in possession of the Premises after the expiration of this Lease, the tenancy shall become a month-to-month tenancy, terminable upon [Number] days' notice by either party, at a rental rate of [Dollar Amount] per month.

12. Indemnification and Liability

The Tenant shall indemnify and hold harmless the Landlord from and against any and all claims, losses, damages, liabilities, and expenses arising out of the Tenant's use of the Premises or the Tenant's breach of this Lease.

Limitation of Liability:

• Option A: The Landlord shall not be liable for any injury, loss, or damage to the Tenant's property, except to the extent caused by the Landlord's gross negligence or willful misconduct.
• Option B: This clause is intentionally omitted.

13. Environmental Responsibility

The Tenant shall comply with all applicable environmental laws and regulations.

The Tenant shall not use, store, or dispose of any hazardous materials on the Premises without the Landlord's prior written consent.

The Tenant shall indemnify and hold harmless the Landlord from and against any and all claims, losses, damages, liabilities, and expenses arising out of the Tenant's violation of any environmental laws or regulations.

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

Subordination: This Lease shall be subordinate to any mortgages or other encumbrances that the Landlord may place on the Premises.

Non-Disturbance: Provided that the Tenant is not in default under this Lease, the Tenant's right to possession of the Premises shall not be disturbed by any foreclosure or other transfer of ownership of the Premises.

Attornment: The Tenant shall attorn to any successor in interest to the Landlord.

15. Estoppel Certificate

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

16. Casualty and Condemnation

Casualty: If the Premises are damaged by fire or other casualty, the Landlord shall have the option to repair the Premises or to terminate this Lease. If the Landlord elects to repair the Premises, the rent shall be abated during the period of repair.

Condemnation: If the Premises are taken by eminent domain or other governmental action, this Lease shall terminate.

17. Signage, Advertising, and Exterior Alteration

The Tenant shall obtain the Landlord's prior written approval for any signage, advertising, or exterior alterations. All signage shall comply with applicable local regulations.

18. Access, Hours of Operation, and Parking

The Tenant shall have access to the Premises [Days of the Week] from [Start Time] to [End Time].

Parking: The Tenant shall have the right to use [Number] parking spaces in the parking lot.

Fees: The parking fee shall be [Dollar Amount] per month/year.

19. Rules and Regulations

The Tenant shall comply with all rules and regulations promulgated by the Landlord from time to time. A copy of the current rules and regulations is attached hereto as Exhibit A.

20. Option Clauses

Right of First Refusal:

• Option A: The Tenant shall have a right of first refusal to lease any adjacent space that becomes available during the term of this Lease.
• Option B: The Tenant does not have a right of first refusal.

Purchase Option:

• Option A: The Tenant shall have the option to purchase the Premises at a price of [Dollar Amount] at any time during the term of this Lease.
• Option B: The Tenant does not have the option to purchase the Premises.

21. Americans with Disabilities Act (ADA) Compliance

The Tenant shall be responsible for complying with all applicable requirements of the Americans with Disabilities Act (ADA).

22. Personal Guarantee

• Option A: [Guarantor Name], residing at [Guarantor Address], personally guarantees the Tenant's obligations under this Lease.
• Option B: There is no personal guarantee for this lease.

23. Dispute Resolution

Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Iowa.

Venue: Any legal action arising out of this Lease shall be brought in the state or federal courts located in [County Name] County, Iowa.

Arbitration:

• Option A: Any dispute arising out of this Lease shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.
• Option B: All disputes shall be resolved through litigation in the courts of Iowa.

Attorneys' Fees: The prevailing party in any legal action arising out of this Lease shall be entitled to recover its reasonable attorneys' fees and costs.

24. Notices

All notices 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 overnight courier to the addresses set forth above.

25. Miscellaneous

Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Waiver: No waiver of any provision of this Lease shall be effective unless in writing and signed by the waiving party.

Merger/Integration: This Lease constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, and understandings.

Amendments: This Lease may be amended only by a written instrument signed by both parties.

26. Special Iowa Considerations

Iowa Code Chapter 562A:

• Option A: The parties voluntarily adopt Iowa Code Chapter 562A.
• Option B: The parties do not adopt Iowa Code Chapter 562A.

Rent Control: The parties acknowledge that there are no statutory rent control provisions applicable to this commercial lease in Iowa. The parties have the freedom to set rent, late fees, and rent adjustment mechanisms as they see fit.

Written Lease Required: This agreement constitutes a written lease for a term longer than one year, and is therefore enforceable under the Iowa Statute of Frauds.

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

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[Landlord Name], Landlord

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[Tenant Name], Tenant