Maryland commercial lease agreement template

Maryland Commercial Lease Agreement

This Commercial Lease Agreement (the “Lease”) is made and entered into as of this [Date], by and between [Lessor Legal Name], a [Lessor Business Entity Type, e.g., Limited Liability Company], with a principal place of business at [Lessor Address] (hereinafter referred to as "Landlord"), and [Lessee Legal Name], a [Lessee Business Entity Type, e.g., Corporation], with a principal place of business at [Lessee Address] (hereinafter referred to as "Tenant").

• Landlord:
  • Legal Name: [Lessor Legal Name]
  • Address: [Lessor Address]
  • Business Entity Type: [Lessor Business Entity Type]
  • Authorized Signatory: [Lessor Signatory Name]
  • Contact Information: [Lessor Contact Number], [Lessor Contact Email]
• Tenant:
  • Legal Name: [Lessee Legal Name]
  • Address: [Lessee Address]
  • Business Entity Type: [Lessee Business Entity Type]
  • Authorized Signatory: [Lessee Signatory Name]
  • Contact Information: [Lessee Contact Number], [Lessee Contact Email]

1. Leased Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Property Address], Suite/Unit [Unit Number], consisting of approximately [Square Footage] square feet (the "Premises").

• Address: [Property Address]
• Unit/Suite Number: [Unit Number]
• Square Footage: [Square Footage]
• Permitted Use: [Permitted Use Description]
• Premises Boundaries: [Detailed Description of Boundaries]
• Common Areas: [Description of Common Areas]
• Parking Spaces: [Number] spaces, designated as [Parking Space Designations]; Restrictions: [Parking Restrictions]
• Exclusive/Shared Facilities: [List and Description of Facilities]

2. Lease Term

The term of this Lease shall commence on [Start Date] and shall expire on [End Date] (the "Term").

• Option A: Fixed Term
  • Start Date: [Start Date]
  • End Date: [End Date]
• Option B: Month-to-Month
  • Commencement Date: [Start Date]
• Renewal/Extension: [Renewal/Extension Options and Terms]; Notice Period: [Notice Period in Days] days prior to lease expiration.
• Holdover: [Holdover Rent Rate and Terms]
• Early Termination: [Early Termination Conditions and Penalties]

3. Rent

Tenant shall pay Landlord base rent in the amount of [Base Rent Amount] per [Payment Frequency, e.g., month], payable in advance on the [Day of Month] day of each [Payment Frequency] during the Term.

• Base Rent Amount: [Base Rent Amount]
• Payment Frequency: [Payment Frequency, e.g., Monthly]
• Payment Method: [Acceptable Payment Methods]
• Payment Location: [Payment Address]
• Escalation/Rent Increase:
  • Option A: Annual Percentage Increase: [Percentage]%
  • Option B: CPI Linked: [CPI Index]
  • Option C: Fixed Increases: Specified as [Specific Amounts/Dates]

4. Security Deposit

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

• Amount: [Security Deposit Amount]
• Use: [Permitted Uses of Security Deposit]
• Return Timeline: [Number] days after lease termination and surrender of premises.
• Interest: [Interest Rate, if applicable]; Maryland law dictates specific rules regarding interest on security deposits.

5. Additional Expenses and Financial Obligations

In addition to base rent, Tenant shall be responsible for the following expenses:

• Option A: Triple Net (NNN) Charges: Estimated at [Estimated Amount] per [Time Period], covering [Specific Expenses Covered].
• Property Taxes: [Tenant/Landlord Responsibility, and Percentage if Applicable]
• Insurance: [Tenant/Landlord Responsibility for Specific Insurance Types]
• Maintenance: [Tenant/Landlord Responsibility for Specific Maintenance Items]
• Utilities: [List of Utilities Tenant is Responsible For]
• CAM (Common Area Maintenance) Fees: [Calculation Method and Payment Schedule]
• Service Charges: [Description of Services and Associated Charges]
• Repair Obligations:
  • Structural: [Tenant/Landlord Responsibility]
  • Non-Structural: [Tenant/Landlord Responsibility]
  • HVAC: [Tenant/Landlord Responsibility]
  • Roof: [Tenant/Landlord Responsibility]
  • Plumbing: [Tenant/Landlord Responsibility]
• Prorated Costs: [Method of Calculation for Prorated Costs]

6. Permitted Use and Restricted Uses

The Premises shall be used solely for [Specific Permitted Uses].

• Permitted Uses: [Detailed Description of Permitted Uses]
• Restricted Uses: [List of Restricted Uses]
• Compliance with Zoning and Local Ordinances: Tenant responsible for compliance.
• Business Operation Hours: [Permitted Business Hours]
• Exclusive Use Rights: [Description of any Exclusive Use Rights Granted to Tenant]
• Permits and Licenses: Tenant responsible for obtaining all necessary permits and licenses.

7. Alterations and Improvements

Tenant shall not make any alterations or improvements to the Premises without Landlord's prior written consent.

• Landlord Approval Process: [Process for Obtaining Landlord Approval]
• Liability for Improvements: [Allocation of Liability for Improvements]
• Ownership of Improvements: [Who Owns Improvements at Lease End]
• Restoration Obligations: [Tenant's Restoration Obligations at Lease End]
• Removal of Trade Fixtures: [Terms for Removal of Trade Fixtures]

8. Maintenance and Repair

Landlord shall be responsible for maintaining the [Specific Areas Landlord is Responsible For]. Tenant shall be responsible for maintaining the [Specific Areas Tenant is Responsible For].

• Landlord Duties: [Detailed Description of Landlord's Maintenance and Repair Duties]
• Tenant Duties: [Detailed Description of Tenant's Maintenance and Repair Duties]
• Notification of Repairs: [Procedure for Notifying Landlord of Needed Repairs]
• Remedies for Failure to Perform: [Landlord's and Tenant's Remedies for Failure to Perform Maintenance and Repair Obligations]

9. Insurance

Tenant shall maintain the following insurance coverage: [List of Required Insurance Coverage and Limits]. Landlord shall maintain the following insurance coverage: [List of Required Insurance Coverage and Limits].

• Tenant Insurance:
  • Coverage Types and Limits: [Specific Coverage Types and Limits]
  • Certificate of Insurance: Tenant shall provide Landlord with a certificate of insurance.
• Landlord Insurance:
  • Coverage Types and Limits: [Specific Coverage Types and Limits]
• Waivers of Subrogation: [Waiver of Subrogation Terms, if applicable]

10. Indemnification and Liability

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

• Scope of Indemnity: [Detailed Description of Scope of Indemnity]
• Limitation of Landlord's Liability: Landlord shall not be liable for [Limitations on Landlord's Liability].

11. Assignment and Subletting

Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent.

• Landlord Approval Required: [Requirement for Landlord Approval]
• Conditions for Approval: [Conditions Tenant Must Meet for Assignment or Subletting]
• Prohibition of Assignment: [Option to Prohibit Assignment or Subletting]

12. Access and Inspection

Landlord shall have the right to enter the Premises for inspection and repair purposes upon reasonable notice to Tenant, except in cases of emergency.

• Notice Requirements: [Number] hours' notice required, except in emergencies.
• Emergency Access: Landlord may enter the Premises without notice in case of emergency.
• Frequency/Limits: [Limits on Frequency of Inspections]

13. Signage

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

• Landlord Approval Process: [Process for Obtaining Landlord Approval for Signage]
• Signage Restrictions: [Restrictions on Signage Size, Location, and Content]

14. Default and Remedies

The following shall constitute events of default under this Lease: [List of Events of Default].

• Events of Default: [Detailed List of Events Constituting Default by Tenant]
• Notice and Cure Periods: [Notice Period and Cure Period for Each Event of Default]
• Landlord Remedies: [Landlord's Remedies Upon Tenant's Default, including Eviction, Re-entry, Damages, and Termination Rights]; *Note: Maryland law restricts certain landlord remedies.*
• Tenant Rights to Offset/Damages: [Tenant's Rights to Offset Rent or Seek Damages, if any]

15. Casualty and Condemnation

If the Premises are damaged by fire or other casualty, this Lease shall terminate unless Landlord elects to repair the Premises.

• Damage to Premises: [Provisions for Damage to Premises due to Fire or Other Casualty]
• Condemnation: [Provisions for Condemnation of the Premises]
• Rent Abatement: [Terms for Rent Abatement During Repair]
• Termination Rights: [Terms for Termination of Lease due to Casualty or Condemnation]
• Allocation of Awards: [Allocation of Condemnation Awards]

16. Surrender of Premises

Upon termination of this Lease, Tenant shall surrender the Premises in the same condition as received, reasonable wear and tear excepted.

• Cleaning: [Cleaning Requirements Upon Surrender]
• Removal of Personal Property: [Tenant's Obligation to Remove Personal Property]
• Repair of Damage: [Tenant's Obligation to Repair Tenant-Caused Damage]
• Return of Keys: [Procedure for Returning Keys]
• Final Inspection: [Procedure for Final Inspection]

17. Security Deposit (Details)

Landlord may withhold from the security deposit only such amounts as are reasonably necessary to remedy Tenant's default in the payment of rent or to repair damage to the Premises caused by Tenant, reasonable wear and tear excepted. Landlord shall provide an itemized list of deductions to Tenant within [Number] days of lease termination.

• Reasons for Withholding: [Permitted Reasons for Withholding Security Deposit]
• Timeframe for Return: [Number] days after lease termination and surrender of premises.
• Itemized List: Landlord must provide an itemized list of deductions as required by Maryland law.

18. Environmental Compliance and Hazardous Materials

Tenant shall not store, use, or dispose of any hazardous materials on the Premises in violation of applicable environmental laws.

• Prohibition of Hazardous Substances: [Specific Restrictions on Hazardous Substances]
• Compliance with Environmental Laws: Tenant responsible for complying with all environmental laws.

19. Americans with Disabilities Act (ADA)

Tenant shall be responsible for complying with the Americans with Disabilities Act (ADA) with respect to the Premises.

• ADA Compliance: [Allocation of Responsibility for ADA Compliance]

20. Personal Guarantee (Optional)

(Optional) In consideration of Landlord entering into this Lease with Tenant, [Guarantor Name], residing at [Guarantor Address], personally guarantees the full and prompt performance of all of Tenant's obligations under this Lease.

• Guarantor: [Guarantor Name]
• Responsibilities: [Specific Responsibilities of Guarantor]
• Conditions for Release: [Conditions for Release of Guarantor]

21. Escrow of Funds (Optional)

(Optional) In the event of a dispute between Landlord and Tenant, either party may require that rent payments be placed in escrow pending resolution of the dispute.

• Escrow Agent: [Name of Escrow Agent]
• Terms of Escrow: [Specific Terms of Escrow Agreement]

22. Notices and Communications

All notices and 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 reputable overnight courier service to the addresses set forth above.

• Permitted Methods: [Permitted Methods of Notice]
• Required Recipients: [Who Should Receive Notices]
• Addresses for Notice: Use addresses listed above.
• Effective Date: [Date Notice is Deemed Effective]

23. Governing Law and Jurisdiction

This Lease shall be governed by and construed in accordance with the laws of the State of Maryland. Any legal action or proceeding arising out of or relating to this Lease shall be brought in the state or federal courts located in [County Name] County, Maryland.

• Governing Law: Laws of the State of Maryland.
• Jurisdiction: [County Name] County, Maryland.
• Dispute Resolution:
  • Option A: Mediation
  • Option B: Arbitration
  • Option C: Court Litigation

24. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease to the extent that such failure is caused by a force majeure event.

• Definition of Force Majeure: [Definition of Force Majeure Events]
• Impact on Obligations: [Impact of Force Majeure on Lease Obligations]

25. Compliance with Anti-Discrimination Laws

Landlord and Tenant shall comply with all applicable anti-discrimination laws.

• Anti-Discrimination Compliance: [General Statement of Compliance]

26. State-Specific Disclosures (Maryland)

[Include any required Maryland-specific disclosures, such as radon disclosures or lead-based paint disclosures if applicable. For example:]

• Radon Disclosure: [Radon Disclosure Language if Applicable]
• Lead-Based Paint Disclosure: [Lead-Based Paint Disclosure Language if Applicable] (Required for buildings built before 1978). *Landlord must provide EPA-approved pamphlet.*

27. Tax Reporting and Allocation

[Detail tax reporting responsibilities, especially for NNN leases, and allocation of business personal property taxes.] Tenant shall be responsible for reporting and paying business personal property taxes.

28. Landlord's Right to Relocate Tenant (Optional)

(Optional) Landlord shall have the right to relocate Tenant to another comparable space within the building upon [Number] days' written notice.

• Relocation Assistance: [Description of Relocation Assistance to be Provided]

29. Licenses and Permits

Tenant is responsible for obtaining and maintaining all necessary licenses and permits to operate its business on the Premises.

• Consequences of Non-Compliance: [Consequences of Tenant's Failure to Obtain Required Licenses and Permits]

30. General Provisions

• Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
• Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Merger/Integration Clause: This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.
• Amendment: This Lease may be amended only by a written instrument signed by both parties.

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

____________________________
Landlord: [Lessor Legal Name]

By: ____________________________
Name: [Lessor Signatory Name]
Title: [Lessor Signatory Title]

____________________________
Tenant: [Lessee Legal Name]

By: ____________________________
Name: [Lessee Signatory Name]
Title: [Lessee Signatory Title]