Minnesota office lease agreement template

Minnesota Office Lease Agreement

This Minnesota Office Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between [Landlord Name], a [Landlord Entity Type, e.g., Corporation] with its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type, e.g., Limited Liability Company] with its principal place of business at [Tenant Address] ("Tenant").

Premises:

• Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the office space located at [Property Address], specifically suite/floor number [Suite/Floor Number], consisting of approximately [Square Footage] square feet of leasable area as measured by BOMA standards (the "Premises"). A legal description of the property is [Legal Description]. The Premises includes access to common areas, including but not limited to, the lobby, elevators, conference rooms, restrooms, parking facilities, mail and delivery facilities, and janitorial services (the "Common Areas").
• Option B: The Premises also includes the following exclusive-use spaces: [List Exclusive Use Spaces]. The following building services are included: snow removal, HVAC adaptation for Minnesota weather, and stormwater management.
• Option C: Tenant acknowledges that the Premises is part of an office condominium association and agrees to adhere to all rules and regulations thereof, including but not limited to: [List Condominium Rules].

Permitted Use:

• Option A: The Premises shall be used solely for general commercial office purposes and for no other purpose. This use is consistent with the zoning regulations of [City/Municipality Name] under Municipal Code section [Municipal Code Section].
• Option B: Tenant shall not convert the Premises to any non-office or non-compliant use.
• Option C: Tenant shall obtain and maintain all necessary business licenses and comply with all occupancy regulations required by the City of [City Name], the Americans with Disabilities Act (ADA), and all applicable state and federal anti-discrimination laws.

Lease Term:

• Option A: The initial term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date] (the "Term").
• Option B: Renewal Options: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration, e.g., 5 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.
• Option C: Right of First Refusal/Offer: If Landlord intends to lease additional office space in the building, Tenant shall have a right of [First Refusal/First Offer] to lease such space. Landlord shall provide Tenant with written notice of the availability of the space, and Tenant shall have [Number] days to exercise its right.

Rent:

• Option A: Base Rent: The annual base rent for the Premises shall be [Dollar Amount] per square foot, totaling [Dollar Amount] per year, payable in monthly installments of [Dollar Amount].
• Option B: Rent Adjustments: The annual rent shall be adjusted annually based on the following:
  • CPI Increase: An increase based on the Consumer Price Index (CPI) for [Specific CPI Region].
  • Operating Expense Escalation Clause: An increase based on increases in operating expenses as detailed in Section [Section Number].
  • Step Rent Increase: Scheduled rent increases as follows: [List Scheduled Increases].
• Option C: Payment: Rent shall be payable in lawful money of the United States, without deduction or setoff, and shall be due on the first day of each month. Acceptable forms of payment are: [List Acceptable Payment Methods].
• Option D: Late Fees: A late fee of [Dollar Amount or Percentage] will be charged for any rent payment received more than [Number] days after the due date, as permitted by Minnesota law.

Lease Type:

• Option A: Gross Lease: This is a gross lease. Landlord shall be responsible for all operating expenses, including but not limited to, CAM, utilities, HVAC, property taxes, building insurance, snow/ice removal and capital improvements, subject to the limitations outlined below.
• Option B: Net Lease: This is a net lease. Tenant shall be responsible for Tenant’s proportionate share of all operating expenses, including but not limited to, CAM, utilities, HVAC, property taxes, special municipal assessments, building insurance, snow/ice removal, and capital improvements, as follows: [Detailed Cost-Sharing Formulas].

Utilities:

• Option A: Utilities Metering: The Premises is [Directly/Sub-] metered for the following utilities: [List Utilities].
• Option B: Utility Allocation: If utilities are not separately metered, Tenant's share of utility costs shall be determined as follows: [Describe Allocation Method].
• Option C: Interruption Notification: Landlord shall provide Tenant with reasonable notice of any planned utility interruptions or base-building system failures.

Security Deposit:

• Option A: Amount: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount].
• Option B: Permissible Uses: The security deposit may be used to cover damages to the Premises, unpaid rent, or other breaches of this Lease, in accordance with Minnesota law (Minn. Stat. § 504B.178).
• Option C: Interest and Return: Landlord shall handle the security deposit and return it, along with any interest earned, within [Number] days after the termination of this Lease, in compliance with Minnesota law (Minn. Stat. § 504B.178). Landlord shall provide a written accounting of any deductions from the security deposit.

Tenant Improvements:

• Option A: Approval Process: Any tenant improvements or alterations to the Premises, including partitioning, wiring, and signage, require Landlord's prior written consent, which shall not be unreasonably withheld.
• Option B: Contractor Vetting: Tenant shall use contractors approved by Landlord for any construction work.
• Option C: Permits and Compliance: Tenant shall obtain all necessary city building permits and ensure that all improvements comply with applicable codes.
• Option D: Restoration: At the termination of this Lease, Tenant shall [Restore/Not Restore] the Premises to its original condition, unless otherwise agreed in writing. Ownership of fixtures and wiring shall be determined in accordance with Minnesota real property statutes.

Repair and Maintenance:

• Option A: Tenant Responsibilities: Tenant shall be responsible for routine cleaning, trash removal, and the general upkeep of the interior of the Premises.
• Option B: Landlord Responsibilities: Landlord shall be responsible for the maintenance of the exterior of the building, roof, structure, major building systems, and HVAC, including seasonal suitability. Landlord is responsible for snow-related maintenance.
• Option C: Emergency Repairs: Tenant shall promptly report any needed repairs to Landlord. Landlord shall respond to emergency repairs within a reasonable time. Minnesota-specific pest control is the responsibility of [Landlord/Tenant].

Insurance:

• Option A: Tenant Insurance: Tenant shall maintain a minimum liability insurance coverage of [Dollar Amount] with a Minnesota endorsement. Tenant shall also maintain fire and extended casualty insurance.
• Option B: Landlord Insurance: Landlord shall maintain building insurance covering the Premises.
• Option C: Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant hereby waive all rights of subrogation against each other.
• Option D: Proof of Coverage: Tenant shall provide Landlord with proof of insurance coverage upon request.

Condemnation and Casualty:

• Option A: Condemnation: In the event the Premises are taken by eminent domain, this Lease shall terminate.
• Option B: Fire or Casualty: If the Premises are damaged by fire or other casualty, this Lease shall be governed by Minn. Stat. § 504B.151. If the Premises are unusable for more than [Number] days, Tenant shall have the right to terminate this Lease.
• Option C: Restoration: Landlord shall have [Number] days to restore the Premises. If Landlord fails to do so, Tenant may terminate this Lease.

Move-In and Move-Out:

• Option A: Move-In: Prior to move-in, a final inspection of the premises will be conducted and recorded.
• Option B: Move-Out: Upon termination of this Lease, Tenant shall surrender the Premises in the same condition as received, reasonable wear and tear excepted. Tenant shall return all keys and access cards, decommission IT/data cabling, remove all personal property, and ensure the Premises are cleaned.
• Option C: Abandoned Property: Any property left behind by Tenant will be handled in accordance with Minn. Stat. § 504B.271.

Subleasing and Assignment:

• Option A: Restrictions: Tenant shall not sublease or assign this Lease without Landlord's prior written consent, which shall not be unreasonably withheld, per Minnesota statutory requirements.
• Option B: Landlord Fees: Landlord may charge a reasonable fee for the review of any proposed sublease or assignment.
• Option C: Permitted Use: Any sublease or assignment must be for office-related purposes and comply with the terms of this Lease.

Dispute Resolution:

• Option A: Negotiation: The parties shall first attempt to resolve any disputes through good-faith negotiation.
• Option B: Mediation: If negotiation fails, the parties may agree to mandatory mediation under the Minnesota Commercial Real Estate Mediation Act.
• Option C: Jurisdiction: Any legal action shall be brought in the state courts of Minnesota, and venue shall be in [County Name] County. The parties waive their right to a jury trial. This Lease shall be governed by the laws of the State of Minnesota.

Indemnification:

• Option A: Tenant Indemnification: Tenant shall indemnify and hold Landlord harmless from any and all claims, damages, liabilities, and expenses arising out of Tenant's use of the Premises, in accordance with Minnesota law.
• Option B: Environmental Compliance: Tenant shall comply with all applicable environmental laws. Landlord discloses the following regarding environmental conditions: [Landlord Environmental Disclosures].

Taxes:

• Option A: Real Estate Taxes: Tenant shall pay its proportionate share of real estate taxes, as determined by [Calculation Method].
• Option B: Business Property Taxes: Tenant shall be responsible for any Minnesota business property taxes or assessments levied on its personal property or equipment.

Landlord Entry:

Landlord shall have the right to enter the Premises for inspection, repair, and showing the space to prospective tenants, with reasonable notice to Tenant, as required by Minnesota landlord law.

Compliance with Laws:

Landlord and Tenant shall comply with the Minnesota Human Rights Act and all other laws prohibiting lease discrimination. Landlord shall post all required business licenses and certificates as required by local ordinance.

Building Rules and Policies:

Tenant shall adhere to all building rules and policies, including hours of access, building security, sustainable operation, and recycling requirements. Landlord encourages energy conservation measures supported by the State of Minnesota.

Other Provisions:

• Integration Clause: This Agreement constitutes the entire agreement between the parties.
• Guaranty: [Is/Is Not] a personal guaranty required. If so, the guarantor is: [Guarantor Name].
• Estoppel Certificate: Tenant shall provide an estoppel certificate upon Landlord's request.
• Notice: All notices shall be delivered in writing to the addresses specified above and may be sent by [List Acceptable Notice Methods], including email or electronic service according to the Minnesota Uniform Electronic Transactions Act.
• Succession: This agreement binds and benefits the parties and their successors and permitted assigns, pursuant to Minnesota commercial law.
• Financial Reporting: Tenant shall cooperate with the landlord in providing any information reasonably required for tax or compliance audits.
• Public Health Emergency Protocol: [Describe any COVID-19 or public health emergency protocols required by Minnesota law or building policy, or state “No protocols are required at this time.”]

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

Landlord:

[Landlord Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

Tenant:

[Tenant Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]