Montana commercial lease agreement template

Montana Commercial Lease Agreement

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

[Landlord Name], residing at [Landlord Address], whose entity type is [Landlord Entity Type: Individual, LLC, Corporation, Partnership] (“Landlord”), and

[Tenant Name], residing at [Tenant Address], whose entity type is [Tenant Entity Type: Individual, LLC, Corporation, Partnership] (“Tenant”).

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

Agent/Property Manager (if applicable): [Agent/Property Manager Name], Contact Information: [Agent/Property Manager Contact Information].

Mailing Address for Notices:

• Landlord: [Landlord Notice Address]
• Tenant: [Tenant Notice Address]

1. Leased Premises

• The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises (the “Leased Premises”) located at [Property Address], Unit/Suite Number [Unit/Suite Number], legally described as: [Legal Description of Property].
• The Leased Premises includes [Square Footage] square feet of rentable area.
• Common Areas: [Description of Common Areas]
• Option A: A detailed floor plan of the Leased Premises is attached hereto as Exhibit A and incorporated herein.
• Option B: No floor plan is attached.

2. Permitted Use

• The Leased Premises shall be used by Tenant solely for the following purposes: [Description of Permitted Use(s)].
  • Option A: General Commercial
  • Option B: Office
  • Option C: Retail
  • Option D: Industrial
  • Option E: Restaurant
  • Option F: Special Use: [Specify Special Use]
• Restrictions/Prohibited Uses: [Description of Restrictions/Prohibited Uses]
  • Option A: Exclusive Use: Tenant shall have the exclusive right to operate a [Type of Business] business within the building.
  • Option B: Co-Tenancy Requirements: This lease is contingent upon [Specific Business] operating within the building.
  • Option C: Hours of Operation: Tenant shall maintain the following hours of operation: [Specify Hours of Operation].

3. Lease Term

• The term of this Lease (the "Lease Term") shall commence on [Start Date] and shall expire on [End Date].
  • Option A: Fixed Term. The lease term is a fixed term of [Number] years.
  • Option B: Month-to-Month Tenancy. The lease will automatically renew on a month-to-month basis until terminated by either party.
• Renewal Options:
  • Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term] each. To exercise this option, Tenant must provide Landlord with written notice at least [Number] days but not more than [Number] days prior to the expiration of the then-current Lease Term. The rent during the renewal term shall be [New Rent Amount].
  • Option B: No renewal option is granted.
• Early Termination:
  • Option A: Tenant shall have the right to terminate this Lease prior to the expiration of the Lease Term by providing Landlord with [Number] days written notice and paying a termination fee equal to [Amount of Termination Fee].
  • Option B: No early termination is permitted.
• Option A: Automatic Renewal. This lease shall automatically renew for successive terms of [Length of Renewal Term], unless either party gives written notice of non-renewal at least [Number] days prior to the end of the then-current term.
• Option B: Non-Renewal Notice Required. Either party may terminate this lease at the end of the then-current term by providing written notice of non-renewal at least [Number] days prior to the end of the term.

4. Rent and Payment Terms

• Base Rent: The base rent for the Leased Premises shall be [Base Rent Amount] per [Month/Year].
• Rent Calculation Method:
  • Option A: Per Square Foot: [Rent per Square Foot] per square foot per [Month/Year].
  • Option B: Percentage Rent: In addition to the base rent, Tenant shall pay Landlord [Percentage] % of Tenant’s gross sales exceeding [Sales Threshold] per [Month/Year].
• Due Date: Rent shall be due and payable in advance on the [Day] day of each [Month/Year].
• Payment Method: Rent shall be paid by [Payment Method(s) Allowed].
• Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount], to be held by Landlord as security for the performance of Tenant's obligations under this Lease. See Section [Security Deposit Section Number] for the specifics of the deposit return.
• Rent Increases/Escalation:
  • Option A: Annual Increase: The base rent shall increase by [Percentage] % on each anniversary of the Commencement Date.
  • Option B: CPI Adjustment: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Area], as published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment shall be calculated as follows: [CPI Calculation Formula].
• Late Payment Fees: If rent is not received by the [Number] day of the month, Tenant shall pay a late fee of [Late Fee Amount]. Note, Montana law restricts the amount of late fees which can be charged.
• Returned Check Fee: Tenant shall pay a fee of [Returned Check Fee Amount] for any check returned for insufficient funds.
• Pro-Rata Rent: For any partial month at the beginning or end of the Lease Term, rent shall be prorated on a per diem basis.
• Option A: Rent Abatement/Free Rent: Tenant shall receive a rent abatement/rent-free period for the first [Number] months of the Lease Term.
• Option B: No rent abatement.

5. Operating Expenses and Additional Charges

• This Lease is a:
  • Option A: Gross Lease. Landlord shall pay all operating expenses, including property taxes, insurance, utilities, and common area maintenance.
  • Option B: Modified Gross Lease. Landlord shall pay [List of Landlord Paid Expenses], and Tenant shall pay [List of Tenant Paid Expenses].
  • Option C: Triple Net (NNN) Lease. Tenant shall pay, in addition to the base rent, all property taxes, insurance, utilities, and common area maintenance (CAM) expenses associated with the Leased Premises.
• Property Taxes: [Describe Responsibility for Property Taxes].
• Insurance: [Describe Responsibility for Insurance].
• Utilities: [Describe Responsibility for Utilities].
• Common Area Maintenance (CAM): [Describe Responsibility for CAM].
  • CAM expenses shall be calculated as follows: [CAM Calculation Formula].
  • Increase Cap: CAM expenses shall not increase by more than [Percentage] % in any calendar year.
  • Audit Rights: Tenant shall have the right to audit Landlord's CAM expense records upon [Number] days written notice.
• Service Charges: [Describe any other service charges].

6. Maintenance, Repair, and Alterations

• Tenant's Maintenance Obligations: [Description of Tenant's Maintenance Obligations]
• Landlord's Maintenance Obligations: [Description of Landlord's Maintenance Obligations].
• Routine and Emergency Repairs: [Responsibility for Routine and Emergency Repairs].
• Maintenance Standards: [Description of Required Maintenance Standards].
• Tenant Improvements and Alterations:
  • Tenant shall obtain Landlord's prior written approval for any improvements or alterations to the Leased Premises.
  • All alterations shall be performed in a good and workmanlike manner and in compliance with all applicable laws and regulations.
  • Option A: Restoration: Tenant shall be required to restore the Leased Premises to its original condition upon the expiration or termination of this Lease.
  • Option B: No restoration required.
• Damage or Destruction: [Procedure for handling damage or destruction of the premises].

7. Use and Compliance

• Compliance with Laws: Tenant shall comply with all applicable federal, state (including Montana statutes), and local laws, ordinances, building codes, and zoning regulations.
• Hazardous Materials: Tenant shall not use, store, or dispose of any hazardous materials on the Leased Premises without Landlord's prior written consent and in compliance with all applicable environmental laws.
• Permits and Licenses: Tenant shall be responsible for obtaining all necessary permits and licenses required for the operation of its business on the Leased Premises.

8. Subletting and Assignment

• Option A: Subletting and assignment are permitted with Landlord's prior written consent, which shall not be unreasonably withheld.
• Option B: Subletting and assignment are prohibited.
• Conditions for Consent: [Conditions for Landlord's Consent].
• Recapture Rights: Landlord shall have the right to recapture the Leased Premises in the event Tenant seeks to sublet or assign this Lease.

9. Insurance

• Tenant shall maintain the following insurance coverage:
  • Commercial General Liability: [Coverage Amount].
  • Property Insurance: [Coverage Amount].
  • Business Interruption Insurance: [Coverage Amount].
  • Workers' Compensation Insurance: As required by Montana law.
• Additional Insured: Tenant shall name Landlord as an additional insured on its commercial general liability policy.
• Proof of Insurance: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage prior to the commencement of the Lease Term and upon each renewal of the policy.

10. Indemnity and Liability

• Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, damages, liabilities, and expenses arising out of or related to Tenant's use of the Leased Premises.
• Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant each waive any and all rights of recovery against the other for any loss or damage to the extent covered by insurance.
• Limitations of Liability: [Limitations of Liability].

11. Casualty and Condemnation

• Fire or Natural Disaster: [Rights and obligations in the event of fire or natural disaster].
• Eminent Domain: [Rights and obligations in the event of eminent domain].
• Repair/Restoration: [Options for repair/restoration].
• Rent Abatement/Termination: [Rent abatement or termination rights].
• Claims and Insurance Proceeds: [Procedures for claims and insurance proceeds].

12. Default and Remedies

• Tenant Default: The following shall constitute a default by Tenant under this Lease:
  • Failure to pay rent when due.
  • Failure to comply with any other term or condition of this Lease.
• Landlord Default: The following shall constitute a default by Landlord under this Lease:
  • Failure to comply with any term or condition of this Lease.
• Cure Period: [Number] days' notice required before default is triggered.
• Landlord's Remedies: Upon the occurrence of a Tenant Default, Landlord shall have the following remedies:
  • Lockout: Landlord may lock out Tenant.
  • Late Fees: Landlord may charge late fees.
  • Eviction: Landlord may evict Tenant in accordance with Montana law.
  • Rent Acceleration: Landlord may accelerate the rent due for the remainder of the Lease Term.
  • Self-Help for Repairs: Landlord may make repairs on Tenant's behalf and charge Tenant for the cost thereof.
• Tenant's Remedies: Upon the occurrence of a Landlord Default, Tenant shall have the following remedies:
  • [Tenant's Remedies].
• Montana Compliance: All default and eviction procedures shall comply with applicable Montana law.

13. Security Deposit

• Permissible Uses for Deduction: Landlord may deduct from the Security Deposit amounts necessary to cover unpaid rent, damage to the Leased Premises beyond normal wear and tear, and other amounts due under this Lease.
• Return Timeline: Landlord shall return the Security Deposit to Tenant, less any deductions, within [Number] days after the expiration or termination of this Lease, as required by Montana law (MCA Section 70-25-201 et seq.).
• Statement of Deductions: Landlord shall provide Tenant with a written statement of any deductions from the Security Deposit.
• Attorney Fees: In the event of a dispute regarding the Security Deposit, the prevailing party shall be entitled to recover its reasonable attorney fees and costs.

14. Entry and Inspection

• Landlord's Right of Entry: Landlord shall have the right to enter the Leased Premises upon [Number] hours’ prior written notice to Tenant for the purpose of inspection, maintenance, or repair. Consistent with Montana 24-hour minimum notice.
• Emergency Entry: Landlord may enter the Leased Premises without notice in the event of an emergency.
• Showing the Premises: Landlord shall have the right to show the Leased Premises to prospective tenants or purchasers during the [Number] months prior to the expiration of the Lease Term.

15. Signage, Parking, and Common Area Use

• Signage: [Signage Restrictions and Landlord Approval Requirements].
• Parking: [Parking Allocation and Maintenance].
• Common Area Use: [Use of Loading Docks, Elevators, and Access Restrictions].

16. Hazardous Materials and Environmental Compliance

• Prohibition of Hazardous Substances: Tenant shall not use, store, or dispose of any hazardous substances on the Leased Premises in violation of applicable environmental laws.
• Compliance with Environmental Laws: Tenant shall comply with all applicable environmental laws and regulations.
• Indemnity for Environmental Contamination: Tenant shall indemnify Landlord for any environmental contamination caused by Tenant's use of the Leased Premises.
• Environmental Assessments: [Procedures for Environmental Assessments].

17. Americans with Disabilities Act (ADA) and Accessibility

• Responsibilities for Compliance: [Allocation of ADA Compliance Obligations between Landlord and Tenant].

18. Options and Rights of First Refusal

• Option to Purchase: [Terms and Conditions of Option to Purchase].
• Right of First Negotiation: [Terms and Conditions of Right of First Negotiation].
• Right of First Refusal: [Terms and Conditions of Right of First Refusal].

19. 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 shall submit the dispute to mediation.
• Option C: Arbitration: If mediation fails, the parties shall submit the dispute to binding arbitration.
• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Montana.
• Forum and Venue: Any legal action arising out of or relating to this Lease shall be brought in the state or federal courts located in [County] County, Montana.

20. Notices and Communications

• Permitted Methods of Notice Delivery: Notices shall be deemed to have been duly given when delivered by:
  • Mail.
  • Personal Delivery.
  • Email.
  • Other Electronic Means: [Specify Electronic Means].
• Approved Notice Addresses: [Landlord and Tenant Approved Notice Addresses].
• Timelines for Deemed Receipt: [Timelines for Deemed Receipt].

21. Representations and Warranties

• Authority to Enter into Lease: Each party represents and warrants that it has the full right, power, and authority to enter into this Lease.
• Compliance with Non-Contravention: [Representation regarding compliance with non-contravention].
• Condition of Premises: [Statements concerning the premises' condition].

22. Miscellaneous Provisions

• Entire Agreement: This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
• Amendment: This Lease may be amended only by a writing 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.
• Force Majeure: 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.
• Waiver: No waiver of any provision of this Lease shall be effective unless in writing and signed by the waiving party.
• Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
• No Partnership or Agency: Nothing contained in this Lease shall be deemed to create a partnership or agency relationship between the parties.
• 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.

23. Exhibits and Addenda

The following exhibits and addenda are attached to and incorporated into this Lease:

• Exhibit A: Property Description
• Exhibit B: Building Rules and Regulations
• Exhibit C: Certificate of Insurance
• Exhibit D: Guarantee Agreement
• Exhibit E: Disclosure Statement
• Exhibit F: Montana-Specific Forms (if applicable)

24. Montana-Specific Requirements and Considerations

• Compliance with Montana Landlord-Tenant Statutes: This Lease shall comply with all applicable Montana landlord-tenant statutes, including but not limited to MCA Section 70-25-201 et seq. regarding security deposit return procedures and deadlines.
• Late Fee Limits: Late fees shall comply with Montana law regarding permissible late fee amounts.
• Attorney Fee Provisions: Attorney fee provisions shall comply with Montana law.
• Eviction Procedures: Eviction procedures shall comply with MCA Title 70, Chapter 24 regarding unlawful detainer.
• Property Tax Assessment: [Local property tax and assessment allocation details].
• Agricultural Contamination Reporting: [Procedures for reporting environmental or agricultural contamination].

[Optional Sections – Include as Needed]

25. Construction and Build-Out Requirements

• Work Letter: [Detailed work letter specifying construction and build-out requirements].
• Contractor Selection: [Procedures for selecting contractors].
• Change Order Process: [Procedures for change orders].
• Funding Disbursement: [Conditions for funding disbursement].

26. Green Building/Sustainability and Energy Use Disclosures

• [Disclosures regarding green building practices and energy use].

27. Co-Tenancy, Signage Exclusivity, and Competitor Limitations

• [Clauses relevant to co-tenancy, signage exclusivity, or competitor limitations].

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

____________________________
[Landlord Name]

____________________________
[Tenant Name]