Kentucky commercial lease agreement template

Kentucky Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into this [Date], by and between [Landlord Name], a [Landlord Entity Type, e.g., Individual, Corporation, LLC], with a business address at [Landlord Business Address] (hereinafter referred to as "Landlord"), and [Tenant Name], a [Tenant Entity Type, e.g., Individual, Corporation, LLC], with a business address at [Tenant Business Address] (hereinafter referred to as "Tenant").

Landlord Agent: [Agent Name], [Agent Contact Details]

Tenant Agent: [Agent Name], [Agent Contact Details]

1. Premises

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

Option A: Located at [Street Address], [Suite/Unit Number], [City], Kentucky [Zip Code].

Option B: Legal Description: [Legal Description]

The Premises consists of approximately [Square Footage] square feet.

Permitted Use: The Premises shall be used solely for the purpose of [Intended Use of Premises].

Common Area Rights: [Description of Common Area Rights].

Parking: [Number] parking spaces are allocated to the Tenant, located [Location of Parking Spaces].

2. Lease Term

The Lease shall commence on [Start Date] and shall continue for a term of [Number] years, expiring on [End Date].

Option A: Automatic Renewal: This Lease shall automatically renew for successive terms of [Number] years unless either party gives written notice of non-renewal at least [Number] days prior to the expiration of the then-current term.

Option B: Holdover Tenancy: If the Tenant remains in possession of the Premises after the expiration of the Lease Term with the Landlord's consent, such holding over shall be deemed a month-to-month tenancy.

Early Termination:

Option A: Tenant shall provide [Number] days written notice for early termination with a penalty of [Amount].

Option B: No early termination permitted.

3. Rent

Base Rent: The Tenant shall pay to the Landlord as base rent the sum of [Dollar Amount] per [Month/Year], payable in advance on the [Day] day of each [Month/Year].

Escalation:

Option A: Annual Increase: The base rent shall increase annually by [Percentage]%.

Option B: CPI Adjustment: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [City, State].

Option C: Market Rate Adjustment: The base rent shall be adjusted to the then-current market rate every [Number] years.

Security Deposit: The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount]. The security deposit shall be returned to the Tenant within [Number] days after the termination of this Lease, less any deductions for damages or unpaid rent, consistent with Kentucky law.

Payment Method: Rent shall be paid by [Payment Method, e.g., Check, Electronic Transfer].

Late Payment: If rent is not received by the [Number] day of the month, a late fee of [Dollar Amount] shall be charged. A returned check fee of [Dollar Amount] will be charged.

4. Taxes, Insurance, and Operating Expenses

Taxes:

Option A: Gross Lease: Landlord shall pay all real estate taxes.

Option B: Net Lease: Tenant shall pay a pro rata share of real estate taxes. The pro rata share shall be [Percentage]%.

Insurance:

Option A: Landlord's Responsibility: Landlord shall maintain property and casualty insurance. Tenant shall maintain commercial liability insurance.

Option B: Tenant's Responsibility: Tenant shall obtain and maintain property, casualty, and liability insurance with minimum coverage of [Dollar Amount].

Utilities:

Option A: Landlord's Responsibility: Landlord shall pay for [List of Utilities].

Option B: Tenant's Responsibility: Tenant shall pay for [List of Utilities].

Maintenance and Repairs: [Specify responsibilities for maintenance and repairs. e.g., Landlord responsible for structural, Tenant for interior].

Lease Type:

Option A: Gross Lease

Option B: Net Lease

Option C: Triple Net (NNN) Lease

Option D: Modified Gross Lease: [Specify modifications].

5. Maintenance, Repair, and Alterations

Maintenance Responsibilities:

Landlord: [Specify Landlord maintenance responsibilities, e.g., Structure, Roof, HVAC].

Tenant: [Specify Tenant maintenance responsibilities, e.g., Interior, Plumbing].

Repair Requests: Tenant shall notify Landlord in writing of any required repairs.

Alterations:

Option A: Tenant may make alterations with Landlord's prior written consent.

Option B: Tenant shall not make any alterations to the Premises without Landlord's prior written consent.

All alterations become the property of the landlord at the end of the lease term.

6. Assignment and Subletting

Assignment:

Option A: Tenant may assign this Lease with Landlord's prior written consent, which shall not be unreasonably withheld.

Option B: Tenant shall not assign this Lease.

Subletting:

Option A: Tenant may sublet the Premises with Landlord's prior written consent, which shall not be unreasonably withheld.

Option B: Tenant shall not sublet the Premises.

Consent Conditions: Any consent required shall be subject to [Specify conditions, e.g., creditworthiness of assignee/sublessee].

Fees: [Specify any fees associated with assignment or subletting].

7. Use and Compliance

Permitted Use: The Premises shall be used solely for [Permitted Use].

Prohibited Activities: The Tenant shall not engage in any [Specify prohibited activities, e.g., hazardous activities, illegal activities].

Compliance: Tenant shall comply with all applicable zoning ordinances, building codes, accessibility laws (including ADA), and Kentucky-specific safety requirements.

8. Rights of Entry and Inspection

Landlord's Right to Enter: Landlord shall have the right to enter the Premises upon [Number] hours' prior written notice for the purpose of making repairs, inspections, or showing the Premises to prospective tenants or buyers.

Emergency Access: Landlord may enter the Premises without notice in case of an emergency.

9. Insurance and Liability

Required Insurance: Tenant shall maintain [Specify insurance policies, e.g., commercial liability, property insurance] with minimum coverage limits of [Dollar Amount].

Additional Insured: Landlord shall be named as an additional insured on Tenant's liability policy.

Waiver of Subrogation: [Specify waiver of subrogation rights].

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

10. Damage and Destruction

Partial Destruction: If the Premises are partially destroyed, the Landlord shall repair the Premises within a reasonable time, and rent shall abate proportionally to the extent the Premises are unusable.

Total Destruction: If the Premises are totally destroyed, this Lease shall terminate.

Termination Right: Landlord has the option to terminate this lease.

11. Condemnation or Eminent Domain

Taking: If the Premises are taken by eminent domain, this Lease shall terminate.

Allocation of Proceeds: [Specify allocation of condemnation proceeds].

12. Environmental Compliance

Hazardous Substances: Tenant shall not use, store, or generate any hazardous substances on the Premises in violation of applicable laws.

Inspection Right: Landlord shall have the right to inspect the Premises for hazardous substances.

Remediation: [Specify responsibilities for remediation of environmental contamination].

13. Default and Remedies

Events of Default: The following shall constitute events of default:

Failure to pay rent.

Violation of any other term of this Lease.

Abandonment of the Premises.

Notice and Cure: Landlord shall provide Tenant with written notice of any default. Tenant shall have [Number] days to cure the default.

Landlord's Remedies: If Tenant fails to cure a default, Landlord may:

Terminate this Lease.

Sue for damages.

Accelerate rent.

Tenant's Remedies: [Specify tenant's remedies in case of landlord default].

14. Personal Guarantee (Optional)

[Guarantor Name] (the "Guarantor") personally guarantees the performance of all obligations of Tenant under this Lease.

Scope of Guarantee: [Specify scope of guarantee].

Release of Guarantee: [Specify conditions for release of guarantee].

15. Estoppel Certificate and Subordination/Non-Disturbance

Estoppel Certificate: Tenant shall provide an estoppel certificate within [Number] days of Landlord's request.

Subordination: This Lease shall be subordinate to any future mortgages or deeds of trust.

Non-Disturbance: [Specify non-disturbance agreement provisions].

16. Signage and Advertising

Signage Rights: Tenant shall have the right to install signage in [Location], subject to Landlord's approval of the design and size.

Removal: Tenant shall remove all signage at the termination of this Lease.

17. Surrender and Restoration

Surrender: Upon termination of this Lease, Tenant shall surrender the Premises in [Condition], broom clean and free of all debris.

Restoration: [Specify any restoration obligations].

18. Security Measures and Access Control

[Specify any security measures, e.g., locks, alarm systems].

[Specify responsibilities for access control].

19. Dispute Resolution

Governing Law: This Lease shall be governed by the laws of the Commonwealth of Kentucky.

Venue: Any legal action shall be brought in the courts of [County] County, Kentucky.

Dispute Resolution Method:

Option A: Mediation: Any dispute shall be resolved through mediation.

Option B: Arbitration: Any dispute shall be resolved through binding arbitration.

Option C: Court Proceedings: Any dispute shall be resolved through court proceedings.

20. Notices

Notices: All notices shall be in writing and shall be deemed given when:

Delivered personally.

Sent by certified mail, return receipt requested.

Sent by overnight courier.

Addresses:

Landlord: [Landlord Name], [Landlord Business Address]

Tenant: [Tenant Name], [Tenant Business Address]

21. Option and Renewal Rights

Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional terms of [Number] years each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the then-current term.

Right of First Refusal: [Specify right of first refusal provisions].

Right of First Offer: [Specify right of first offer provisions].

Expansion Option: [Specify expansion option provisions].

22. Special Kentucky Considerations

Real Estate Transfer Tax: [Specify allocation of real estate transfer tax].

Commercial Security Deposit: This lease controls use of the security deposit and does not follow KRS 383.580, which governs residential leases.

Self-Help Eviction: Landlord's remedies must comply with Kentucky law regarding eviction procedures.

Required Disclosures: [Specify any required disclosures, e.g., prior contamination, asbestos].

23. Entire Agreement

This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

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

Landlord:

____________________________

[Landlord Name]

Tenant:

____________________________

[Tenant Name]