Minnesota commercial lease agreement template

Minnesota Commercial Lease Agreement

This Commercial Lease Agreement (this "Lease") is made and effective as of [Date], by and between:

Landlord (Lessor): [Landlord Legal Name], a [Landlord Business Entity Type, e.g., Minnesota Corporation], located at [Landlord Address], Phone: [Landlord Phone], Email: [Landlord Email]. Authorized Representative: [Landlord Representative Name].

Tenant (Lessee): [Tenant Legal Name], a [Tenant Business Entity Type, e.g., Minnesota LLC], located at [Tenant Address], Phone: [Tenant Phone], Email: [Tenant Email]. Authorized Representative: [Tenant Representative Name].

Leased Property:

• Address: [Property Address], including suite/unit number: [Suite/Unit Number].
• Legal Description: [Property Legal Description].
• Square Footage: [Square Footage].
• Floor Plan/Site Map: Attached as Exhibit [Exhibit Letter].
• Permitted Use(s): [Permitted Use(s)].
• Exclusive/Exclusionary Use Rights (if any): [Exclusive Use Description, or "None"].

Term:

• Commencement Date: [Start Date].
• Expiration Date: [End Date].
• Renewal Option:
  • Option A: Tenant shall have the option to renew for [Number] additional term(s) of [Length] each, provided Tenant gives Landlord written notice at least [Number] days but not more than [Number] days before the Expiration Date.
  • Option B: No renewal option.
• Holdover: Any holdover beyond the Expiration Date shall be on a month-to-month basis at [Percentage]% of the then-current rent.
• Delivery/Possession Date: [Date].

Rent:

• Base Rent: [Dollar Amount] per [Month/Year].
• Payment Schedule: Payable in advance on the [Day] day of each [Month/Year].
• Payment Method: [Payment Method, e.g., Check, Wire Transfer], details: [Payment Details].
• Prorated Rent: For any partial month, rent shall be prorated on a per diem basis.
• Escalation/Increase:
  • Option A: Rent shall increase annually by [Percentage]%.
  • Option B: Rent shall increase annually based on the Consumer Price Index (CPI), [CPI Index Name], with a maximum increase of [Percentage]% per year.
  • Option C: No escalation.
• Rent Abatement: [Description of Rent Abatement, or "None"].
• Late Fees/Interest: A late fee of [Dollar Amount] or [Percentage]% of the overdue rent, whichever is greater, shall be assessed for payments received more than [Number] days after the due date, plus interest at the rate of [Percentage]% per annum.

Expenses and Charges:

• Operating Expenses:
  • Option A: Triple Net (NNN): Tenant shall be responsible for its pro rata share of all real estate taxes, insurance, and common area maintenance (CAM) expenses.
  • Option B: Gross: Landlord shall be responsible for all real estate taxes, insurance, and CAM expenses.
  • Option C: Modified Gross: Tenant shall be responsible for its pro rata share of [Specific Expenses Tenant is Responsible For].
• Real Estate Taxes: [Specific Allocation, if applicable].
• Insurance: [Specific Allocation, if applicable].
• Utilities: [Utilities Tenant Pays, e.g., Electricity, Gas, Water]. Metering: [Individual/Shared]. Allocation: [Specific Allocation, if applicable].
• Maintenance: [Specific Allocation, if applicable].
• Repairs: [Specific Allocation, if applicable].
• Common Area Maintenance (CAM): [CAM Expense Details].

Maintenance, Repairs, and Replacements:

• Landlord's Obligations: Landlord shall be responsible for maintaining the roof, foundation, and structural components of the building.
• Tenant's Obligations: Tenant shall be responsible for maintaining the interior of the premises in good condition and repair, including but not limited to [Specific Tenant Responsibilities].
• Emergency Repairs: Each party shall notify the other immediately of any necessary emergency repairs.
• Capital Improvements: Any capital improvements require pre-approval from [Landlord/Tenant/Both].
• Reimbursement: [Terms of Reimbursement, if applicable].

Tenant Improvement Allowance:

• Allowance Amount: [Dollar Amount].
• Build-Out Specifications: Attached as Exhibit [Exhibit Letter].
• Construction Timeline: [Construction Timeline].
• Approval Procedures: [Approval Procedures].
• Ownership of Improvements: [Landlord/Tenant].
• Restoration/Removal: At the end of the lease, Tenant shall [Restore/Not Restore] the premises to its original condition, removing all tenant improvements unless otherwise agreed in writing.

Security Deposit:

• Amount: [Dollar Amount].
• Payment Schedule: [Payment Schedule].
• Permitted Uses: To cover damages to the premises, unpaid rent, or other breaches of this Lease.
• Deductions: Landlord may deduct from the security deposit for reasonable costs of repair, cleaning, or unpaid rent.
• Return: Landlord shall return the security deposit, less any lawful deductions, within [Number] days after the termination of the Lease and Tenant’s surrender of the premises, in accordance with Minnesota Statutes Section 504B.178. Interest on the security deposit will be handled as required by Minnesota Statute 504B.177.

Insurance:

• Required Insurance:
  • Liability: [Dollar Amount] per occurrence.
  • Casualty: [Dollar Amount].
  • Property: [Dollar Amount].
  • Business Interruption: [Dollar Amount].
• Additional Insured: Landlord shall be named as an additional insured on Tenant's liability policy.
• Subrogation Waiver: Both parties waive their rights of subrogation against each other.
• Certificates: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage.

Default and Remedy:

• Tenant Default: Failure to pay rent when due, breach of any other material provision of this Lease.
• Landlord Default: Failure to maintain the premises as required by this Lease.
• Notice and Cure: The non-defaulting party shall provide written notice of default, and the defaulting party shall have [Number] days to cure the default.
• Landlord's Remedies: Upon Tenant's default, Landlord may terminate the Lease, re-enter the premises, and pursue all available legal and equitable remedies, including eviction under Minnesota law.
• Tenant's Remedies: Upon Landlord’s default, Tenant may pursue all available legal and equitable remedies, including seeking injunctive relief or damages.

Use:

• Permitted Uses: [Permitted Use(s)].
• Prohibited Uses: [Prohibited Use(s)].
• Zoning Compliance: Tenant shall comply with all applicable zoning ordinances and regulations.
• Environmental Compliance: Tenant shall comply with all applicable environmental laws and regulations, including Minnesota Pollution Control Agency regulations.
• Hazardous Substances: Tenant shall not store or dispose of any hazardous substances on the premises without Landlord's prior written consent.

Assignment and Subletting:

• Consent Required: Tenant shall not assign this Lease or sublet the premises without Landlord's prior written consent, which shall not be unreasonably withheld.
• Approval Criteria: Landlord's consent may be conditioned upon the assignee or sublessee meeting certain financial and operational criteria.
• Fees: Landlord may charge a reasonable fee for processing an assignment or sublease request.

Surrender and Restoration:

• Surrender Condition: Upon termination of this Lease, Tenant shall surrender the premises in broom-clean condition.
• Removal of Improvements: Tenant shall remove all of its personal property and trade fixtures.
• Restoration: [Restoration Obligations, if any].
• Inspection: Landlord and Tenant shall conduct a joint inspection of the premises upon surrender.

Quiet Enjoyment:

Landlord warrants that Tenant shall have quiet enjoyment of the premises during the term of this Lease, subject to Tenant's compliance with the terms of this Lease.

Landlord's Access:

Landlord shall have the right to enter the premises for inspection, repairs, or emergencies, upon providing Tenant with at least [Number] hours' notice, except in cases of emergency, as per Minnesota Statutes Section 504B.211.

Indemnification:

Each party shall indemnify and hold harmless the other party from and against any and all claims, losses, damages, liabilities, and expenses arising out of or relating to its negligence or willful misconduct.

Casualty and Condemnation:

• If the premises are damaged by fire or other casualty, rent shall abate proportionally to the extent the premises are unusable.
• If the premises are rendered wholly unusable, either party may terminate this Lease.
• If the premises are taken by eminent domain, this Lease shall terminate.

Taxes and Assessments:

• Tenant shall be responsible for all personal property taxes and business taxes related to its operations.
• Real estate taxes shall be allocated as described in the Expenses and Charges section.

Dispute Resolution:

• Option A: Any dispute arising out of or relating to this Lease shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall be held in [City, Minnesota].
• Option B: Any dispute arising out of or relating to this Lease shall be resolved through litigation in the state or federal courts located in [County, Minnesota].

Governing Law:

This Lease shall be governed by and construed in accordance with the laws of the State of Minnesota.

Notices:

All notices 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 email (with confirmation of receipt) to the addresses set forth above.

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, such as fire, flood, epidemic, government action, or other cause beyond its reasonable control.

ADA Compliance:

The parties shall comply with all applicable requirements of the Americans with Disabilities Act (ADA). [Specify Responsibility for Compliance].

Guaranty:

[Include Guarantor Provision, if applicable, as a separate addendum]

Estoppel Certificate:

Tenant shall, upon request by Landlord, execute and deliver an estoppel certificate confirming the status of this Lease.

Merger and Integration:

This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written. No amendment or waiver of any provision of this Lease shall be effective unless in writing and signed by both parties.

Severability:

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

Signage:

Tenant shall have the right to install signage in accordance with Landlord's sign criteria and applicable local ordinances. [Signage Details].

Parking:

Tenant shall have the right to use [Number] parking spaces. [Parking Location and Restrictions].

Compliance with Laws:

Tenant shall comply with all applicable laws, ordinances, and regulations, including Minnesota building codes, health, safety, and zoning regulations.

Renewal Rights:

[Include Renewal Rights Provision, if applicable]

Expansion Space:

[Include Expansion Space Provision, if applicable]

Right of First Refusal:

[Include Right of First Refusal Provision, if applicable]

Early Termination/Buyout:

[Include Early Termination/Buyout Provision, if applicable]

Broker Commissions:

Landlord and Tenant each represent that they have not used any broker in connection with this Lease except for [Broker Name], whose commission shall be paid by [Landlord/Tenant].

Minnesota-Specific Notices and Disclosures:

[Include all required Minnesota statutory disclosures, such as disclosure of hazardous substances, energy use, radon, lead or asbestos if applicable, and mechanics' lien rights.]

Bankruptcy and Insolvency:

This Lease shall be subject to the provisions of the United States Bankruptcy Code. [Specify Landlord's remedies in the event of Tenant's bankruptcy].

Successors and Assigns:

This Lease shall be binding upon and inure to the benefit of the parties and their respective heirs, successors, and assigns, subject to the restrictions on assignment set forth herein.

Security Systems/Emergency Preparedness:

[Optional: Include provisions for security systems, emergency preparedness, and rules specific to the building or property as attachments or referenced addenda.]

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

[Landlord Legal Name]

By: [Landlord Representative Name]

Title: [Landlord Representative Title]

[Tenant Legal Name]

By: [Tenant Representative Name]

Title: [Tenant Representative Title]