Mississippi commercial lease agreement template

Mississippi Commercial Lease Agreement

This Commercial Lease Agreement (the "Agreement") is made and entered into as of this [Date of Signing], by and between [Lessor Legal Name], a [Lessor Entity Type, e.g., Mississippi Corporation], with its principal place of business at [Lessor Address], and whose registered agent is [Lessor Registered Agent Name], residing at [Lessor Registered Agent Address] ("Landlord"), and [Lessee Legal Name], a [Lessee Entity Type, e.g., Mississippi LLC], with its principal place of business at [Lessee Address], and whose registered agent is [Lessee Registered Agent Name], residing at [Lessee Registered Agent Address] ("Tenant"). If applicable, the Landlord’s property manager is [Property Manager Name], located at [Property Manager Address].

Premises:

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises (the "Premises") located at [Street Address], [Suite/Unit Number], [City], [County], Mississippi [Zip Code], and legally described as follows: [Legal Description of Premises].

Option B: The Premises consists of approximately [Square Footage] square feet, including the common areas and parking arrangements as detailed herein.

A site map or floor plan is attached hereto as Exhibit [Exhibit Letter/Number].

Tenant shall have the exclusive right to use [Specify Exclusive Use Rights, e.g., parking spaces #1-5].

Term:

Option A: Fixed-Term Lease: The term of this Lease shall commence on [Start Date] and expire on [End Date], unless sooner terminated as provided herein.

Option B: Periodic Lease: The term of this Lease shall be a [Month-to-Month/Year-to-Year] tenancy, commencing on [Start Date].

Renewal Option:

Option A: Tenant shall have [Number] option(s) to renew this Lease for a period of [Renewal Term Length, e.g., 5 years] each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the then-current term. Renewal rent shall be [Specify Renewal Rent Terms, e.g., fair market value at time of renewal/increased by X%].

Option B: There is no renewal option.

Rent:

Option A: Base Rent: Tenant shall pay Landlord base rent in the amount of [Dollar Amount] per [Month/Quarter/Year], payable in advance on the [Day] day of each [Month/Quarter] during the term of this Lease.

Option B: Permitted Payment Methods: Rent shall be paid by [Specify Permitted Payment Methods, e.g., check, wire transfer, ACH] to [Payment Address/Account Details].

Proration: Rent for any partial month shall be prorated based on the actual number of days in that month.

Rent Escalation:

Option A: Fixed Step Increase: The base rent shall increase by [Percentage]% on [Date].

Option B: CPI Adjustment: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [CPI Location, e.g., All Urban Consumers, US City Average], with the adjustment taking effect on each anniversary of the commencement date. The base rent shall be adjusted by the percentage increase in the CPI from the preceding year.

Option C: Market Rent Reset: At the end of every [Number] year(s) of this lease term, the base rent will be adjusted to reflect the current fair market rent for comparable commercial properties in the [Area, e.g., Jackson Metropolitan Area]. An independent appraiser will determine this value if landlord and tenant cannot agree.

Additional Rent and Expenses:

Option A: Triple Net (NNN) Lease: In addition to base rent, Tenant shall pay all real property taxes, insurance premiums, and maintenance expenses related to the Premises (including common areas) ("Operating Expenses").

Option B: Gross Lease: Tenant shall pay only base rent, and Landlord shall be responsible for all Operating Expenses.

Option C: Modified Gross Lease: Tenant shall pay base rent, plus the following Operating Expenses:

Utilities: Tenant shall pay for all utilities used on the Premises, including [List of Utilities, e.g., electricity, gas, water, sewer].

Operating Expenses: Tenant shall pay its pro rata share of Operating Expenses. Tenant’s pro rata share is [Percentage]%, based on the ratio of the square footage of the Premises to the total leasable square footage of the building.

Common Area Maintenance (CAM) Charges: Tenant shall pay its pro rata share of CAM charges. CAM charges may include, but are not limited to, landscaping, snow removal, and exterior lighting.

All additional rent shall be paid [Specify Payment Terms, e.g., monthly, within 30 days of invoice].

Security Deposit:

Amount: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount].

Payment Deadline: The security deposit shall be paid on or before [Date].

Permitted Uses: The security deposit may be used to cover any damages to the Premises, unpaid rent, or other sums due from Tenant under this Lease.

Interest: [Specify if Interest is Owed, e.g., No interest shall be paid on the security deposit/Interest shall be paid annually at the rate of X%]. Mississippi law dictates specific rules regarding interest-bearing security deposits.

Return Conditions: The security deposit, less any lawful deductions, shall be returned to Tenant within [Number, e.g., 45] days after the termination of this Lease and Tenant’s surrender of the Premises, as per Mississippi law.

Allowed Deductions: Landlord may deduct from the security deposit for: [List Allowed Deductions, e.g., unpaid rent, damage to the Premises beyond normal wear and tear, costs of cleaning or repairs].

Method of Return: The security deposit will be returned by [Specify Method, e.g., check, electronic transfer] to the address provided by Tenant.

Alternative Security: In lieu of a cash security deposit, Tenant may provide Landlord with an irrevocable letter of credit in the amount of [Dollar Amount], from a bank acceptable to Landlord.

Use of Premises:

Permissible Use: Tenant shall use the Premises solely for the purpose of [Specify Permissible Use, e.g., retail sales, office space, restaurant].

Prohibited Use: Tenant shall not use the Premises for any unlawful purpose, or any purpose that would create a nuisance or disturb other tenants in the building.

Exclusive Use Protection: Landlord shall not lease any other space in the building to a business that directly competes with Tenant’s business [Specify Nature of Competition].

Co-Tenancy Requirements: If [Anchor Tenant Name] ceases to operate in the shopping center, Tenant shall have the right to [Specify Tenant's Rights, e.g., terminate the lease with X days notice/reduce rent by Y%].

Compliance: Tenant shall comply with all applicable zoning laws, environmental regulations, and business licensing requirements. Tenant is responsible for obtaining all necessary permits and licenses to operate its business on the Premises.

Hazardous Substances: Tenant shall not store, use, or dispose of any hazardous substances on the Premises without Landlord’s prior written consent and in compliance with all applicable environmental laws.

Improvements, Alterations, and Additions:

Tenant Improvements: Tenant may make improvements to the Premises with Landlord’s prior written consent, which shall not be unreasonably withheld.

Landlord Approval: All plans and specifications for any improvements must be submitted to Landlord for approval prior to commencement of work.

Ownership of Alterations: All alterations and improvements made by Tenant shall become the property of Landlord upon the termination of this Lease, unless otherwise agreed in writing.

Restoration: Tenant shall restore the Premises to its original condition upon termination of this Lease, reasonable wear and tear excepted, unless otherwise agreed in writing.

Tenant Improvement Allowance: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.

Landlord Build-Out: Landlord shall complete the following build-out work prior to the commencement of the Lease: [Specify Landlord Build-Out Requirements].

Maintenance and Repair:

Tenant Responsibilities: Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, including [List Tenant Responsibilities, e.g., interior walls, flooring, light fixtures].

Landlord Responsibilities: Landlord shall be responsible for maintaining the structural elements of the building, including the roof, foundation, and exterior walls.

HVAC: [Specify Responsible Party, e.g., Landlord/Tenant] shall be responsible for the maintenance and repair of the HVAC system.

Plumbing: [Specify Responsible Party, e.g., Landlord/Tenant] shall be responsible for the maintenance and repair of the plumbing system.

Landscaping: Landlord shall be responsible for maintaining the landscaping around the building.

Parking: Landlord shall be responsible for maintaining the parking areas.

Janitorial: [Specify Responsible Party, e.g., Landlord/Tenant] shall be responsible for providing janitorial services for the Premises.

Pest Control: Landlord shall be responsible for pest control.

Snow/Ice Removal: Landlord shall be responsible for snow and ice removal.

Insurance:

Required Insurance: Tenant shall maintain the following insurance coverage:

Commercial General Liability Insurance: [Dollar Amount] per occurrence.

Property Insurance: Covering the replacement cost of Tenant’s personal property and improvements.

Business Interruption Insurance: Sufficient to cover lost profits during any period of business interruption.

Loss Payee/Additional Insured: Landlord shall be named as an additional insured on Tenant’s commercial general liability policy and as a loss payee on Tenant’s property insurance policy.

Subrogation Waiver: Tenant waives all rights of subrogation against Landlord.

Proof of Coverage: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage prior to the commencement of this Lease and upon each renewal.

Landlord Option: Landlord may, at its option, require Tenant to obtain additional insurance coverage.

Damage or Destruction:

Notice: In the event of damage to the Premises, Tenant shall promptly notify Landlord.

Repair Obligation: If the Premises are damaged but not rendered untenantable, Landlord shall repair the Premises within a reasonable time.

Abatement: If the Premises are rendered untenantable, rent shall abate until the Premises are restored to a tenantable condition.

Termination Option: If the Premises are substantially damaged and cannot be repaired within [Number] days, either Landlord or Tenant may terminate this Lease.

Insurance Proceeds: Insurance proceeds shall be used to repair or rebuild the Premises.

Casualty and Condemnation:

Casualty: If the Premises are damaged by fire or other casualty, this Lease shall terminate if the Premises are rendered wholly untenantable and Landlord does not elect to repair within [Number] days. Rent shall abate as provided by law during any period the premises is untenantable due to casualty.

Condemnation: If the entire Premises are taken by eminent domain, this Lease shall terminate. If only a portion of the Premises is taken, Tenant shall have the option to terminate this Lease or continue in possession of the remaining Premises with a proportionate reduction in rent.

Allocation of Award: Any condemnation award shall be allocated as follows: [Specify Allocation, e.g., to Landlord for the value of the land and building, to Tenant for the value of its leasehold interest and personal property].

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.

Qualifications of Assignee/Subtenant: Any proposed assignee or subtenant must be financially responsible and have a business reputation acceptable to Landlord.

Profit Sharing: [Specify Profit Sharing Arrangement, e.g., Landlord shall be entitled to 50% of any rent received by Tenant in excess of the rent due under this Lease].

Permitted Transfers: Tenant may assign this Lease to a wholly-owned subsidiary or affiliate without Landlord’s consent.

Grounds for Withholding Consent: Landlord may withhold consent to an assignment or subletting if the proposed use of the Premises is inconsistent with the terms of this Lease or would violate any exclusive use provisions.

Default:

Monetary Default: Tenant shall be in default if it fails to pay rent or other sums due under this Lease when due.

Non-Monetary Default: Tenant shall be in default if it fails to comply with any other provision of this Lease.

Notice and Cure: Landlord shall give Tenant written notice of any default, and Tenant shall have [Number] days to cure the default. For non-monetary defaults, Tenant shall have a reasonable time to cure, not exceeding [Number] days, provided Tenant commences cure within the initial notice period and diligently pursues the cure to completion.

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

Interest: Overdue amounts shall bear interest at the rate of [Percentage]% per annum.

Landlord Remedies: Upon Tenant’s default, Landlord may:

Terminate this Lease and evict Tenant.

Sue for damages, including lost rent and the cost of re-letting the Premises.

Re-enter the Premises and re-let it for the account of Tenant.

Pursue any other remedy available at law or in equity.

Landlord has a lien against the tenant’s property located on the premises for any rent due, as outlined under Mississippi law.

Surrender:

Surrender Condition: Upon termination of this Lease, Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted.

Removal of Fixtures: Tenant shall remove all of its personal property and fixtures from the Premises.

Restoration: Tenant shall restore the Premises to its original condition, unless otherwise agreed in writing.

Abandoned Property: Any property left on the Premises after termination shall be deemed abandoned and may be disposed of by Landlord.

Cleaning and Repairs: Tenant shall leave the premises in a broom-clean condition and repair any damage caused by Tenant's activities.

Access:

Landlord Access: Landlord shall have the right to enter the Premises upon reasonable notice (except in emergencies) for the purpose of inspection, repairs, or showing the Premises to prospective tenants or purchasers.

Notice Requirement: Except in cases of emergency, Landlord shall provide Tenant with at least [Number] hours' notice prior to entering the Premises.

Business Hours: Landlord shall use commercially reasonable efforts to conduct its activities during Tenant’s normal business hours.

Building Systems: Landlord retains the right to install, maintain, and relocate building systems and equipment as necessary.

Signage:

Signage Rights: Tenant shall have the right to install signage on the exterior of the Premises, subject to Landlord’s approval and compliance with local ordinances.

Approval Process: All signage must be submitted to Landlord for approval prior to installation. Landlord's approval shall not be unreasonably withheld.

Aesthetics: All signage must be of a professional quality and consistent with the aesthetic standards of the building.

Local Ordinances: Tenant is responsible for complying with all applicable local ordinances regarding signage.

Compliance with Laws:

Building Rules and Regulations: Tenant shall comply with all building rules and regulations established by Landlord from time to time.

ADA Compliance: Tenant shall be responsible for complying with the Americans with Disabilities Act (ADA) with respect to its use of the Premises.

Hazardous Substances: Tenant shall comply with all applicable hazardous substance laws.

General Legal Compliance: Tenant shall comply with all other applicable laws and regulations.

Sale or Transfer by Landlord:

Right of First Refusal: Tenant shall have a right of first refusal to purchase the Premises in the event Landlord decides to sell the property.

Subordination and Attornment: Tenant agrees to subordinate its leasehold interest to any mortgage or deed of trust placed on the property by Landlord. Tenant agrees to attorn to any successor owner of the property.

Indemnification:

Tenant Indemnification: Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, damages, and liabilities arising out of Tenant’s use of the Premises, except to the extent caused by the negligence or willful misconduct of Landlord.

Landlord Indemnification: Landlord shall indemnify and hold Tenant harmless from any and all claims, losses, damages, and liabilities arising out of Landlord’s use of the property, except to the extent caused by the negligence or willful misconduct of Tenant.

Utilities and Services:

Payment Responsibility: Tenant shall be responsible for paying for all utilities used on the Premises, including [List of Utilities, e.g., electricity, gas, water, sewer, telecommunications].

Metering: Utilities shall be separately metered to the Premises.

Upgrades: Tenant shall be responsible for any upgrades to the utility systems required by its use of the Premises.

Equipment Installation: Tenant may install telecommunications equipment on the Premises, subject to Landlord’s approval.

Personal Guaranty:

Guaranty: [Include this section only if a personal guaranty is required.] In consideration of Landlord entering into this Lease with Tenant, [Guarantor Name], residing at [Guarantor Address], hereby personally guarantees the full and timely performance of all of Tenant’s obligations under this Lease.

Scope of Guaranty: This guaranty shall be a continuing guaranty and shall remain in effect for the entire term of this Lease, including any renewals or extensions.

Notice: Guarantor waives any right to receive notice of Tenant’s default.

Dispute Resolution:

Mediation: Any dispute arising out of this Lease shall be submitted to mediation prior to the commencement of any legal action.

Arbitration: [Optional] Any dispute arising out of this Lease shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association.

Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Mississippi.

Venue and Jurisdiction: Any legal action arising out of this Lease shall be brought in the state or federal courts located in [County Name] County, Mississippi.

Attorney’s Fees: The prevailing party in any legal action arising out of this Lease shall be entitled to recover its reasonable attorney’s fees and costs.

Entire Agreement:

Integration: 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.

Addendums/Exhibits: The following addendums and exhibits are incorporated into this Lease: [List Addendums and Exhibits].

Amendment: This Lease may not be amended except by a written instrument signed by both parties.

Notices:

Delivery Method: All notices 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.

Addresses: Notices shall be sent to the following addresses:

Landlord: [Lessor Address]

Tenant: [Lessee Address]

Force Majeure:

Excusable Delay: Neither party shall be liable for any failure to perform its obligations under this Lease to the extent such failure is caused by a force majeure event, such as acts of God, war, strikes, or governmental regulations.

Early Termination:

Termination Right: [Specify Conditions for Early Termination, e.g., Tenant may terminate this Lease if it is unable to obtain necessary permits or licenses].

Notice: Tenant shall provide Landlord with [Number] days' notice of its intent to terminate the Lease.

Penalty: Tenant shall pay Landlord a penalty of [Dollar Amount or Percentage] for early termination.

Miscellaneous:

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

Non-Waiver: The failure of either party to enforce any provision of this Lease shall not be deemed a waiver of such provision.

Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

Interpretation: This Lease shall be interpreted in accordance with its plain meaning and shall not be construed against either party.

Time of the Essence: Time is of the essence in the performance of all obligations under this Lease.

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.

Mississippi-Specific Considerations:

Landlord Lien: Landlord has a lien on all of Tenant’s personal property located on the Premises to secure the payment of rent, as provided under Mississippi law.

Notice Periods: Landlord must provide Tenant with a three-day notice to pay rent or vacate the Premises prior to commencing eviction proceedings, as required by Mississippi law.

Security Deposit Handling: Landlord must return the security deposit, less any lawful deductions, within 45 days of termination of the Lease and Tenant’s surrender of the Premises, as per Mississippi law.

Recording: For leases exceeding one year, recording with the county clerk is recommended to protect against subsequent claims.

Warranty of Habitability: Note that Mississippi law does not generally imply a warranty of habitability for commercial leases.

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

Landlord:

[Lessor Legal Name]

By: [Lessor Signature]

Name: [Lessor Printed Name]

Title: [Lessor Title]

Tenant:

[Lessee Legal Name]

By: [Lessee Signature]

Name: [Lessee Printed Name]

Title: [Lessee Title]