Massachusetts commercial lease agreement template

Massachusetts Commercial Lease Agreement

This Commercial Lease Agreement (the “Lease”) is made and entered into as of this [Date] by and between:

• [Landlord's Full Legal Name], a [Landlord's Entity Type, e.g., Limited Liability Company], with a principal place of business at [Landlord's Address] (hereinafter referred to as "Landlord"), and
• [Tenant's Full Legal Name], a [Tenant's Entity Type, e.g., Corporation], with a principal place of business at [Tenant's Address] (hereinafter referred to as "Tenant").

Landlord and Tenant are sometimes collectively referred to herein as the “Parties” and individually as a “Party.”

Witnesseth:

Premises:

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Street Address, including Unit/Suite Number], City of [City], County of [County], State of Massachusetts, legally described as [Legal Description of Property], and containing approximately [Square Footage] square feet (the "Premises") as outlined on the floor plan attached hereto as Exhibit A.

• Option A: The Tenant shall have the exclusive right to use the Premises for the purpose of [Permitted Use].
• Option B: The Tenant shall have the non-exclusive right to use the Premises for the purpose of [Permitted Use], subject to the Landlord's right to lease other spaces in the building for similar or competing uses.

Term:

The term of this Lease shall commence on [Start Date] (the "Commencement Date") and shall expire on [End Date] (the "Expiration Date"), unless sooner terminated as provided herein.

• Option A: Initial Fixed Term: The term shall be a fixed term of [Number] years.
• Option B: Month-to-Month Renewal: After the initial term, this Lease shall automatically renew on a month-to-month basis unless either party provides written notice of termination at least [Number] days prior to the end of the then-current term.
• Option C: Renewal Rights: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term. The rent for each renewal term shall be [Rent Calculation Method, e.g., the then-prevailing market rate as determined by appraisal, or a fixed percentage increase of X%].
• Option D: Right of First Refusal/Offer: Tenant shall have a right of first refusal/offer to lease any adjacent space that becomes available during the term of this Lease. Landlord shall provide Tenant with written notice of such availability, and Tenant shall have [Number] days to exercise its right.
• Option E: Early Termination: Tenant shall have the option to terminate this Lease early by providing Landlord with [Number] months’ written notice and paying a termination fee of [Dollar Amount or Formula].

Rent:

Tenant shall pay Landlord rent for the Premises as follows:

• Base Rent: The base rent shall be [Dollar Amount] per month, payable in advance on the [Day] day of each month, commencing on the Commencement Date.
• Payment Method: Rent shall be paid by [Payment Method, e.g., check, wire transfer, electronic funds transfer] to Landlord at [Payment Address] or such other place as Landlord may designate in writing.
• Late Payment: If rent is not received by Landlord within [Number] days after the due date, Tenant shall pay a late fee of [Dollar Amount or Percentage]. Massachusetts law limits the late fee that can be charged.
• Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant's obligations under this Lease. The security deposit shall be returned to Tenant, less any deductions for damages or unpaid rent, within [Number] days after the termination of this Lease and Tenant's surrender of the Premises, as required by Massachusetts law, along with an itemized list of deductions. Landlord must comply with M.G.L. c. 186, § 15B regarding security deposits, including interest payments to tenant as required.
• Rent Escalations:
  • Option A: Annual Percentage Increase: The base rent shall increase by [Percentage]% each year, commencing on the anniversary of the Commencement Date.
  • Option B: Fixed Step Increases: The base rent shall increase to [Dollar Amount] on [Date] and to [Dollar Amount] on [Date].
  • Option C: CPI Adjustment: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Index, e.g., All Urban Consumers, Boston-Cambridge-Newton, MA-NH], with the adjustment to be calculated as follows: [CPI Calculation Formula].
• Expense Reimbursements: Tenant shall reimburse Landlord for the following expenses:
  • Utilities: [Specify which utilities, e.g., electricity, gas, water, sewer].
  • Cleaning: [Specify details about cleaning expense reimbursements].
  • Trash: [Specify details about trash removal expense reimbursements].
• Operating Expenses:
  • Lease Type: This Lease is a [Gross, Net, Modified Gross, Triple Net] lease.
  • Real Estate Taxes: [Landlord/Tenant] shall be responsible for the payment of real estate taxes.
  • Insurance: [Landlord/Tenant] shall be responsible for the payment of property insurance.
  • Maintenance: [Landlord/Tenant] shall be responsible for the maintenance of [Specify areas, e.g., roof, structure, common areas].
  • Common Area Maintenance (CAM) Fees: Tenant shall pay its pro rata share of CAM fees, which shall be calculated as [Calculation Method, e.g., Tenant's square footage divided by total rentable square footage of the building].
  • Utilities: [Landlord/Tenant] shall be responsible for the payment of utilities.

Use and Occupancy:

• Permitted Uses: The Premises shall be used solely for [Specifically describe permitted uses].
• Prohibited Uses: Tenant shall not use the Premises for any unlawful purpose or any purpose that violates any applicable laws, ordinances, or regulations, including, but not limited to, [List Prohibited Uses, e.g., residential use, storage of hazardous materials in violation of applicable laws].
• Business Operating Hours: Tenant's business operating hours shall be [Specify hours].
• Compliance: Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including, but not limited to, the Americans with Disabilities Act (ADA) and all environmental laws.
• Massachusetts Regulations: Tenant shall comply with all applicable Massachusetts regulations, including those related to hazardous materials disclosures (M.G.L. c. 21E) and waste disposal systems (Title 5 of the Massachusetts Environmental Code, 310 CMR 15.000).

Maintenance, Repair, and Alterations:

• Landlord's Obligations: Landlord shall be responsible for maintaining and repairing the [Specify areas, e.g., roof, structural components, common areas, HVAC].
• Tenant's Obligations: Tenant shall be responsible for maintaining and repairing the [Specify areas, e.g., interior of the Premises, plumbing, electrical systems within the Premises].
• Alterations: Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld.
• Signage: Tenant shall be permitted to erect a sign on the Premises, subject to Landlord's approval and compliance with all applicable municipal regulations (See also specific Signage section below).
• Restoration: Upon termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing.

Subletting and Assignment:

• Landlord Approval: Tenant shall not sublet the Premises or assign this Lease without Landlord's prior written consent, which consent shall not be unreasonably withheld.
• Tenant's Right: Landlord's consent shall not be required for a sublease or assignment to a subsidiary or affiliate of Tenant, provided that Tenant remains liable under this Lease.
• Recapture Right: Landlord shall have the right to recapture the Premises if Tenant requests consent to sublet or assign.
• Massachusetts Notice: Tenant must provide Landlord with at least [Number] days written notice of any proposed sublease or assignment, including the name and address of the proposed subtenant or assignee and the terms of the proposed sublease or assignment.

Insurance:

• Required Coverage: Tenant shall maintain the following insurance coverage:
  • Property Insurance: Insurance against loss or damage to Tenant's personal property and leasehold improvements in an amount not less than [Dollar Amount].
  • Liability Insurance: Commercial general liability insurance with limits of not less than [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate.
  • Business Interruption Insurance: Business interruption insurance in an amount sufficient to cover Tenant's lost profits and expenses during any period of interruption.
• Certificate of Insurance: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage prior to the Commencement Date and upon each renewal of the policy.
• Additional Insured: Landlord shall be named as an additional insured on Tenant's liability insurance policy.
• Massachusetts Norms: Tenant's insurance shall comply with standard Massachusetts commercial insurance practices.

Indemnity:

Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of or relating to Tenant's use of the Premises or Tenant's breach of this Lease. Landlord shall indemnify, defend, and hold harmless Tenant from and against any and all claims, losses, damages, liabilities, and expenses (including attorney’s fees) arising out of or relating to Landlord’s gross negligence or willful misconduct.

Default and Remedies:

• Events of Default: The following shall constitute events of default:
  • Non-Payment: Tenant's failure to pay rent or other charges when due.
  • Illegal Use: Tenant's use of the Premises for any illegal purpose.
  • Breach of Covenants: Tenant's breach of any other covenant or agreement in this Lease.
• Cure Period: Tenant shall have [Number] days to cure any default, except for non-payment of rent, which shall have a cure period of [Number] days, subject to Massachusetts law.
• Landlord's Remedies: Upon the occurrence of an event of default, Landlord shall have the following remedies:
  • Eviction: Evict Tenant from the Premises in accordance with Massachusetts law (summary process). Landlord must follow the specific requirements of Massachusetts law, including service of a notice to quit.
  • Termination: Terminate this Lease.
  • Recovery of Costs: Recover all damages and costs incurred by Landlord as a result of Tenant's default, including attorney's fees.
• Tenant's Remedies: Upon the occurrence of a material breach by Landlord, Tenant shall have the right to [Describe Tenant's Remedies, e.g., abatement of rent, repair and deduct, termination].
• Statutory Notice: All notices required under this Lease shall comply with the notice requirements of Massachusetts law, including, but not limited to, the requirements for serving a notice to quit in a summary process action.

Security Deposit:

• Amount: The security deposit shall be [Dollar Amount].
• Permitted Deductions: Landlord may deduct from the security deposit for damages to the Premises (beyond reasonable wear and tear) and unpaid rent.
• Interest: Landlord shall pay interest on the security deposit as required by Massachusetts law (M.G.L. c. 186, § 15B).
• Location of Deposit: The security deposit shall be held in a bank account located in Massachusetts.
• Return: Landlord shall return the security deposit, less any permitted deductions, within [Number] days after termination of the Lease and Tenant's surrender of the Premises, along with an itemized statement of deductions.
• Itemized Statement: The itemized statement shall comply with the requirements of M.G.L. c. 186, § 15B.
• Tenant Remedies: Tenant shall have the remedies available under M.G.L. c. 186, § 15B if Landlord fails to comply with the security deposit law.

Options:

• Expansion:
  • Option A: Tenant shall have the option to lease additional space in the building as it becomes available, subject to the terms and conditions to be negotiated at the time of exercise.
• Renewal: (See Term section above)
• Purchase:
  • Option A: Tenant shall have the option to purchase the Premises at any time during the term of this Lease for a price of [Dollar Amount or Formula]. Tenant must provide Landlord with [Number] days written notice of its intent to exercise this option.
• Right of First Refusal: (See Term section above)

Governmental Compliance and Legal Provisions:

• ADA: The Premises shall comply with the Americans with Disabilities Act (ADA). Responsibility for ADA compliance is [Landlord/Tenant].
• Environmental Laws: Tenant shall comply with all applicable environmental laws, including those related to hazardous waste, asbestos, and lead paint. Landlord represents, to the best of its knowledge, that the premises are free of hazardous conditions that would violate M.G.L. c. 21E.
• Title 5: If the Premises uses a septic system, Landlord certifies compliance with Massachusetts Title 5 septic regulations (310 CMR 15.000).
• Zoning and Licensing: Tenant shall be responsible for obtaining all necessary zoning approvals, licenses, and permits for its use of the Premises. Landlord will cooperate as needed.
• Necessary Permits: Tenant is responsible for securing all necessary permits for its intended business operations in the Premises.
• Local Ordinances: The parties acknowledge that they are subject to all applicable local ordinances affecting commercial rentals.

Signage:

• Landlord Approval: Tenant shall obtain Landlord's prior written approval of any signage to be placed on the Premises.
• Municipal Regulations: All signage shall comply with applicable municipal regulations.
• Illumination: [Specify rules regarding illumination of signage].
• Removal: Upon termination of this Lease, Tenant shall remove all signage and restore the Premises to its original condition.

Entry, Inspection, and Security:

• Landlord's Right of Entry: Landlord shall have the right to enter the Premises upon reasonable notice to Tenant for the purpose of inspection, maintenance, or repairs.
• Notice Requirement: Except in the case of an emergency, Landlord shall provide Tenant with at least [Number] hours’ notice prior to entering the Premises.
• Emergency Entry: Landlord may enter the Premises without notice in the event of an emergency.
• Massachusetts Laws: Landlord's right of entry shall comply with all applicable Massachusetts laws.

Casualty and Condemnation:

• Casualty: If the Premises are damaged by fire or other casualty, Landlord shall repair or restore the Premises within a reasonable time. If the Premises are substantially damaged and cannot be restored within [Number] days, either party may terminate this Lease.
• Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate. The condemnation award shall be distributed as follows: [Specify distribution of proceeds]. Rent shall abate during any period of untenantability.

Surrender and Holding Over:

• Surrender: Upon termination of this Lease, Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted.
• Restoration: Tenant shall restore the Premises to its original condition, unless otherwise agreed in writing.
• Holding Over: If Tenant holds over after the expiration of this Lease, Tenant shall be a tenant at sufferance and shall pay rent at a rate of [Percentage]% of the then-current base rent.
• Unauthorized Occupancy: Tenant acknowledges that unauthorized continued occupancy beyond the lease's term will result in legal action, including but not limited to eviction proceedings.

Massachusetts-Specific Statutes:

• Disclosures: Landlord represents that [State disclosures required by Massachusetts law, e.g., no known lead paint hazards, compliance with fire safety regulations].
• Consumer Protections: This Lease is subject to the consumer protection provisions of M.G.L. c. 93A.
• Lead Paint: Landlord represents whether or not the building contains lead paint and has complied with applicable Massachusetts lead paint laws, if applicable.
• Fire Safety: Landlord confirms the property adheres to current Massachusetts fire safety regulations, including but not limited to proper fire extinguishers and clearly marked exits.
• Smoking Regulations: Smoking is [Permitted/Prohibited] in the Premises, in accordance with applicable Massachusetts laws and regulations.
• Sprinklers: [State whether the premises are equipped with sprinklers. If so, describe their maintenance responsibilities.].

Personal Guaranty: (Optional - Include only if applicable)

• Guarantor: [Guarantor's Full Legal Name], residing at [Guarantor's Address], hereby guarantees the performance of Tenant's obligations under this Lease.
• Scope: The guaranty shall be [Limited/Unlimited] and shall cover [Specify obligations covered by the guaranty].

Dispute Resolution:

• Method: Any dispute arising out of or relating to this Lease shall be resolved by [Litigation, Mediation, or Arbitration].
  • Litigation: If resolved by litigation, the venue shall be the courts of the Commonwealth of Massachusetts.
  • Mediation: If resolved by mediation, the mediation shall take place in [City, State] and the mediator shall be selected by mutual agreement of the parties.
  • Arbitration: If resolved by arbitration, the arbitration shall be conducted in accordance with the rules of the American Arbitration Association.
• Choice of Law: This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.
• Waiver of Jury Trial: [Optional: Include if applicable] The parties hereby waive their right to a jury trial in any action arising out of or relating to this Lease.
• Attorney's Fees: The prevailing party in any action arising out of or relating to this Lease shall be entitled to recover its reasonable attorney's fees and costs.

Force Majeure:

Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by a force majeure event, such as acts of God, war, terrorism, or natural disasters. Rent shall abate during any period of untenantability caused by a force majeure event.

Quiet Enjoyment:

Landlord covenants that Tenant shall have quiet enjoyment of the Premises during the term of this Lease, subject to the terms and conditions hereof.

Estoppel Certificate:

Tenant shall, within [Number] days after written request by Landlord, execute and deliver to Landlord an estoppel certificate confirming the terms of this Lease and stating whether or not Tenant is in default hereunder. Failure to provide an estoppel certificate within the specified timeframe shall be deemed an acceptance of the terms as presented by Landlord.

Notices:

All notices required or permitted under this Lease shall be in writing and shall be deemed to be duly given when delivered personally, sent by certified mail, return receipt requested, or sent by a nationally recognized overnight courier service to the following addresses:

• If to Landlord: [Landlord's Address]
• If to Tenant: [Tenant's Address]

Either party may change its address for notice by giving written notice to the other party.

Counterparts, Execution, and Amendment:

• Counterparts: 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: Electronic signatures shall be acceptable and binding.
• Amendment: This Lease may be amended only by a written instrument signed by both parties.
• Entire Agreement: This Lease constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

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

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[Landlord's Name], Landlord

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[Tenant's Name], Tenant