Massachusetts retail lease agreement template

Massachusetts Retail Lease Agreement

This Retail Lease Agreement ("Agreement") is made and entered into as of [Date of Signing], by and between [Landlord Legal Name], whose address is [Landlord Address] ("Landlord"), and [Tenant Legal Name], whose address is [Tenant Address] ("Tenant").

1. Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Property Address], specifically Unit [Unit Number], with a store frontage of [Store Frontage Size]. The floor plan is attached as Exhibit A.

The total rentable square footage of the Premises is [Rentable Square Footage] square feet.

The Premises include exclusive-use retail space and shared areas as follows:

• Exclusive-Use: [Description of Exclusive-Use Space]
• Shared Areas: [Description of Shared Areas, e.g., entrances, restrooms, corridors, loading docks, parking, and common utility service areas]

2. Use of Premises

The Premises shall be used solely for the purpose of:

• Option A: [Specific Retail Use, e.g., clothing retail]
• Option B: [Alternative Retail Use, e.g., bookstore]

Limitations on Use:

• Option A: No food or drink sales unless expressly allowed.
• Option B: No hazardous goods.
• Option C: Subject to all Massachusetts zoning and municipal use regulations.

The Tenant shall not use the Premises for any illegal or non-commercial activity.

Tenant shall obtain all necessary business licenses and registrations required under Massachusetts law.

3. Lease Term

The term of this Lease shall commence on [Lease Commencement Date] and shall expire on [Lease Expiration Date].

Renewal/Extension:

• Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current term.
• Option B: No renewal option.

Early Termination:

• Option A: Tenant may terminate this Lease early by providing [Number] months written notice to Landlord and paying a termination fee of [Dollar Amount or Formula].
• Option B: No early termination option.

Continuous Operation: Tenant shall continuously operate its business in the Premises during normal business hours, consistent with Massachusetts retail market norms.

4. Rent

The base rent shall be [Dollar Amount] per [Month/Year], payable monthly in advance on the [Day] day of each month, commencing on [Rent Commencement Date].

Method of Payment:

• Option A: Rent shall be paid by check payable to [Payee Name].
• Option B: Rent shall be paid via electronic funds transfer to [Bank Name, Account Number, Routing Number].

Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], to be held and applied in accordance with Massachusetts law.

Rent Increases:

• Option A: Rent shall increase annually by [Percentage]%.
• Option B: Rent shall increase annually based on the Consumer Price Index (CPI).
• Option C: Rent shall increase according to the following schedule: [Specific Schedule].
• Option D: Percentage of Gross Sales: [Percentage] of gross sales exceeding [Dollar Amount].

Sales/Use Tax: Massachusetts sales/use tax and local excise taxes, if applicable, shall be the responsibility of [Landlord/Tenant].

5. Operating Expenses (CAM)

Operating Expenses shall include: common area maintenance (CAM) costs, property taxes, insurance, snow removal, trash/recycling, utilities for common areas, exterior lighting, and landscaping.

Tenant's Pro Rata Share: Tenant's pro rata share of Operating Expenses shall be [Percentage]%, calculated based on the ratio of the Premises' square footage to the total rentable square footage of the property.

Expense Reconciliation: Landlord shall reconcile Operating Expenses annually and provide Tenant with a statement of actual expenses within [Number] days after the end of each calendar year. Any overpayment by Tenant shall be credited to Tenant's account, and any underpayment shall be paid by Tenant within [Number] days of receipt of the statement.

6. Alterations and Signage

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

Signage:

• Option A: Tenant shall have the right to install signage in accordance with [Landlord's Signage Criteria/Local Ordinances]. All signage must comply with Boston or relevant Massachusetts city/town sign ordinances.
• Option B: Tenant may not install any exterior signage without explicit written permission from the Landlord.

Window Displays: Tenant is allowed to maintain window displays, provided they are in keeping with the overall aesthetic of the property.

Trade Fixtures: All trade fixtures installed by Tenant shall remain the property of Tenant and may be removed by Tenant at the expiration or termination of this Lease, provided Tenant repairs any damage caused by such removal.

7. Fit-Out and Build-Out

Tenant shall be responsible for all fit-out and build-out of the Premises.

Turnkey/Vanilla Box:

• Option A: Landlord shall deliver the Premises in "turnkey" condition, as described in Exhibit B.
• Option B: Landlord shall deliver the Premises in "vanilla box" condition, as described in Exhibit C.

Construction Standards: All construction shall be performed in a good and workmanlike manner and in compliance with all applicable codes and regulations.

Landlord Approval: Tenant shall submit all plans and specifications for Landlord's approval prior to commencing any construction. Landlord shall not reasonably withhold its approval.

8. Repair and Maintenance

Landlord's Responsibilities: Landlord shall be responsible for maintaining the roof, structural components, and common areas of the property. Landlord is responsible for the maintenance of the HVAC system.

Tenant's Responsibilities: Tenant shall be responsible for maintaining the interior of the Premises, including non-structural elements, plumbing, and glass, and for repairs arising from Tenant's use or negligence.

Emergency Repairs: Landlord shall provide 24/7 emergency repair service.

Reporting Procedures: Tenant shall promptly report any needed repairs to Landlord in writing.

Allocation of Costs: Costs for repairs arising from Tenant's use or negligence shall be borne by Tenant. This section is governed by Massachusetts building codes and fire safety regulations.

9. Casualty and Condemnation

In the event of a casualty (fire, flood, etc.) rendering the Premises untenantable, rent shall abate until the Premises are restored to a tenantable condition, subject to the provisions of Massachusetts law.

In the event of condemnation of the Premises, this Lease shall terminate, and Tenant shall be entitled to compensation as provided by Massachusetts law. This section refers to applicable Massachusetts fire, flood, or condemnation statutes.

Government-Mandated Closure: If the Premises are required to close due to a government mandate, rent shall be [Abated/Deferred/Other] as agreed upon by both parties.

10. Insurance

Tenant shall maintain the following insurance coverages: commercial general liability insurance with a minimum limit of [Dollar Amount] per occurrence, with Landlord named as an additional insured; property insurance; business interruption insurance; and contents coverage.

Proof of Insurance: Tenant shall provide Landlord with certificates of insurance evidencing the required coverages.

Minimums: Minimum insurance levels must conform to Massachusetts-required insurance minimums.

11. Compliance with Laws

Tenant shall comply with all federal and Massachusetts-specific accessibility statutes (ADA, and Massachusetts Architectural Access Board (521 CMR)), health and sanitation codes, licensing, and environmental restrictions.

12. Subleasing and Assignment

Tenant shall not sublease or assign this Lease without Landlord's prior written consent.

• Option A: Landlord's consent shall not be unreasonably withheld.
• Option B: Landlord has the right to refuse any sublease or assignment at its sole discretion.

Notice Period: Tenant must provide Landlord with [Number] days written notice of any proposed sublease or assignment.

Profit Sharing: In the event of a sublease or assignment, [Percentage]% of any profit shall be paid to Landlord. Massachusetts commercial lease law governs these procedures.

13. Real Estate Taxes

Tenant shall be responsible for its pro rata share of real estate taxes, as determined in Section 5.

Abatement Requests: Procedures for abatement requests and tax appeals shall be in accordance with local Massachusetts real estate tax treatment.

14. Massachusetts Legal Compliance

This Lease is subject to Massachusetts consumer protection laws (Chapter 93A), data privacy requirements for retail tenants, and rules about security deposits (M.G.L. c. 186, s. 15B as applied to commercial leases).

15. Community Benefits/Operating Covenants

If the Premises are located in a mixed-use, mall, or BID environment, Tenant shall comply with all applicable community benefit agreements, business district rules, or shopping center operating covenants.

16. Delivery and Acceptance

The Premises shall be delivered in "as is" condition, "with all faults," subject to Landlord's representations and warranties regarding title, authority, and environmental condition disclosure under Massachusetts law.

Tenant shall have the right to inspect the Premises prior to the commencement of the Lease.

17. Notices

All notices shall be in writing and shall be deemed given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth in this Lease.

Required service and receipt procedures, and acceptable forms of transmission, shall be in accordance with Massachusetts law.

18. Default and Remedies

Events of Default: Failure to pay rent, violation of the use clause, or abandonment of the Premises shall constitute an event of default.

Cure Period: Tenant shall have [Number] days to cure any default.

Late Fees: A late fee of [Dollar Amount or Percentage]% shall be assessed for any rent payment received more than [Number] days after the due date.

Landlord's Remedies: Upon default, Landlord shall have the right to self-help, re-entry, or re-letting in accordance with Massachusetts summary process (eviction) law.

19. Move-In and Move-Out

Tenant shall be responsible for delivering keys and security devices to Landlord upon vacating the Premises.

Restoration: Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, or remove alterations/fixtures as agreed upon.

Abandoned Property: Abandoned personal property shall be handled in accordance with Massachusetts commercial property statute (M.G.L. c. 239).

Turnover Condition: Tenant shall leave the premises in "broom clean" condition upon vacating.

20. Dispute Resolution

Any dispute arising out of this Lease shall be resolved through negotiation and mediation prior to resorting to litigation.

This Lease shall be governed by the laws of the Commonwealth of Massachusetts, and venue shall be in Suffolk County (or the county where the property is located).

Attorneys' Fees: The prevailing party in any dispute shall be entitled to recover its reasonable attorneys' fees.

Indemnification: Tenant shall indemnify Landlord against any and all claims, losses, damages, liabilities, and expenses (including attorney’s fees) arising from any third-party claims related to Tenant's use of the premises.

21. Waiver

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

Prohibition of waiver of non-waivable Massachusetts consumer or safety protections is enforceable.

22. Landlord's Access

Landlord shall have the right to access the Premises for inspection, repair, or showings to prospective tenants/purchasers upon providing Tenant with [Number] hours' notice, reflecting local custom.

23. Marketing/Exclusivity

Co-Tenancy Clause: If [Anchor Tenant] vacates the property, Tenant shall have the right to [Terminate Lease/Reduced Rent/Other].

Radius Clause: Landlord agrees not to lease space within a [Number] mile radius to a business similar to [Tenant's Business].

24. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to force majeure events.

25. Security

Tenant shall comply with all security requirements, including alarm systems, cameras, and after-hours access policies.

26. Historic/Special Zoning

Tenant shall comply with any applicable historic district or special zoning overlays.

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

Landlord:

[Landlord Legal Name]

By: [Landlord Representative Name]

Title: [Landlord Representative Title]

Tenant:

[Tenant Legal Name]

By: [Tenant Representative Name]

Title: [Tenant Representative Title]

[Notary Block for Landlord]

[Notary Block for Tenant]