New Jersey commercial lease agreement template

New Jersey Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and effective as of this [Date], by and between [Lessor Name], whose address is [Lessor Address] ("Landlord"), and [Lessee Name], whose address is [Lessee Address] ("Tenant").

• Landlord's Business Entity Type:
  • Option A: Individual
  • Option B: Corporation
  • Option C: Limited Liability Company (LLC)
  • Option D: Partnership
  • Registration Status: [Registration Status] (e.g., Active, Good Standing)
• Tenant's Business Entity Type:
  • Option A: Individual
  • Option B: Corporation
  • Option C: Limited Liability Company (LLC)
  • Option D: Partnership
  • Registration Status: [Registration Status] (e.g., Active, Good Standing)
• Landlord's Legal Representative: [Landlord Representative Name]
• Tenant's Legal Representative: [Tenant Representative Name]

1. Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Premises Address, including Suite Number] in the City of [City], County of [County], State of New Jersey (the "Premises").

• Legal Description: [Legal Description of Premises]
• Square Footage: [Square Footage]
• Floor Plans: Attached as Exhibit A
• Property Boundaries: As depicted on Exhibit B
• Permitted Use(s): [Specifically define allowable business activities. E.g., Retail Sales, Office Use, Restaurant (specify type)]
• Zoning Compliance: The Landlord warrants that the Permitted Use is in compliance with applicable zoning regulations. [Specify Zoning District].
• Common Areas: The Tenant shall have the right to use, in common with other tenants of the building, the following common areas: [List Common Areas].
• Exclusive Areas: The Tenant shall have exclusive use of the following areas: [List Exclusive Areas].

2. Term

The term of this Lease shall commence on [Start Date] and shall expire on [End Date].

• Fixed Term: The Lease shall be for a fixed term of [Number] years.
• Month-to-Month: The Lease shall be on a month-to-month basis, terminable by either party with [Number] days' written notice.
• Automatic Renewal: This lease shall automatically renew for successive terms of [Number] years unless either party provides written notice of termination at least [Number] days prior to the end of the then-current term.
• Renewal Option: The Tenant shall have the option to renew this Lease for an additional term of [Number] years, provided that the Tenant gives the Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the initial term.
• Procedure for Exercising Renewal: Tenant must deliver written notice to Landlord at [Landlord Notice Address].

3. Rent

The Tenant shall pay to the Landlord as base rent for the Premises the sum of [Dollar Amount] per month, payable in advance on the [Day] day of each month, commencing on [Start Date].

• Base Rent Amount: [Dollar Amount] per month.
• Rent Escalation:
  • Option A: CPI Increase. Rent shall increase annually based on the percentage increase in the Consumer Price Index (CPI) for [Specific CPI Index], as published by the Bureau of Labor Statistics.
  • Option B: Percentage Increase. Rent shall increase annually by [Percentage]%.
  • Option C: Step-Up. Rent shall increase to [Dollar Amount] on [Date] and to [Dollar Amount] on [Date].
  • Option D: Market Adjustment. Rent shall be adjusted to fair market value every [Number] years, as determined by an appraisal process mutually agreed upon by Landlord and Tenant.
• Rent Payment Schedule: Monthly in advance.
• Rent Payment Method: [Specify Payment Method, e.g., Check, Wire Transfer, ACH].
• Security Deposit: The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount], to be held by the Landlord as security for the Tenant's performance of this Lease. The security deposit shall be held in an interest-bearing account at [Bank Name] and shall be returned to the Tenant, less any deductions for damages or unpaid rent, within [Number] days after the termination of this Lease and the Tenant's surrender of the Premises in accordance with the terms hereof. [Comply with New Jersey regulations regarding interest-bearing accounts for security deposits.]
• Late Payment Penalty: If rent is not received within [Number] days of the due date, a late fee of [Dollar Amount] or [Percentage]% of the overdue amount will be charged. Interest on late payments shall accrue at a rate of [Percentage]% per annum. [Comply with any applicable New Jersey late fee caps.]
• Consequences of Nonpayment: Failure to pay rent when due shall constitute a material breach of this Lease, entitling the Landlord to pursue all available remedies, including eviction.

4. Operating Expenses

The parties agree to the following allocation of operating expenses:

• Lease Structure:
  • Option A: Triple Net (NNN). The Tenant shall be responsible for paying all operating expenses associated with the Premises, including, but not limited to, property taxes, building insurance, and common area maintenance (CAM).
  • Option B: Gross. The Landlord shall be responsible for paying all operating expenses associated with the Premises.
  • Option C: Modified Gross. The Landlord shall be responsible for paying certain operating expenses, and the Tenant shall be responsible for paying other operating expenses, as follows: [Specify which expenses are paid by each party].
• Tenant's Share of CAM: The Tenant's share of CAM shall be [Percentage]% of the total CAM expenses for the building.
• Property Taxes: The Tenant's share of property taxes shall be [Percentage]% of the total property taxes for the building.
• Building Insurance: The Tenant's share of building insurance shall be [Percentage]% of the total building insurance premium.
• Utilities: The Tenant shall be responsible for paying for the following utilities: [List Utilities, e.g., Electricity, Gas, Water]. The Landlord shall be responsible for paying for the following utilities: [List Utilities].
• Repairs: See Section 6 (Maintenance and Repairs).
• Janitorial: [Specify which party is responsible for janitorial services].
• Expense Allocation: Expenses shall be allocated based on the Tenant's proportionate share of the building's total square footage.
• Audit Rights: The Tenant shall have the right to audit the Landlord's expense records upon [Number] days' written notice.

5. Use of Premises

The Premises shall be used solely for the Permitted Use(s) specified in Section 1.

• Prohibited Uses: The Tenant shall not use the Premises for any of the following prohibited uses: [List Prohibited Uses, e.g., Residential use, adult entertainment].
• Exclusivity Rights: [Specify if Tenant has exclusive rights to a particular type of business within the building/complex. If so, describe the scope of the exclusivity].
• Restrictions: The Tenant shall comply with the following restrictions: [List Restrictions, e.g., Hours of Operation, Noise Levels, Signage Restrictions].
• Nuisance Clause: The Tenant shall not create any nuisance or disturbance that interferes with the quiet enjoyment of other tenants in the building.
• Hazardous Materials: The Tenant shall not store, use, or dispose of any hazardous materials on the Premises without the Landlord's prior written consent and in compliance with all applicable environmental laws.
• Compliance with Laws: The Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including the Americans with Disabilities Act (ADA).

6. Maintenance and Repairs

The Landlord and Tenant shall have the following maintenance and repair responsibilities:

• Landlord's Responsibilities: The Landlord shall be responsible for maintaining and repairing the following: [List Landlord's Responsibilities, e.g., Structural elements, roof, exterior walls, common areas].
• Tenant's Responsibilities: The Tenant shall be responsible for maintaining and repairing the following: [List Tenant's Responsibilities, e.g., Interior of the Premises, plumbing fixtures, HVAC system (if applicable)].
• HVAC: [Specify responsibility for HVAC maintenance and repair].
• Plumbing: [Specify responsibility for Plumbing maintenance and repair].
• Roof: Landlord is responsible for roof maintenance and repair.
• Windows: [Specify responsibility for window maintenance and repair].
• Landscaping: [Specify responsibility for landscaping].
• Snow Removal: [Specify responsibility for snow removal].
• Pest Control: [Specify responsibility for pest control].
• Scheduling: Repairs shall be scheduled so as to minimize disruption to the Tenant's business.
• Notice Requirements: The Tenant shall provide the Landlord with written notice of any necessary repairs. The Landlord shall have [Number] days to commence repairs.

7. Improvements and Alterations

The Tenant shall not make any alterations or improvements to the Premises without the Landlord's prior written consent.

• Tenant Improvements: All tenant improvements shall be subject to the Landlord's approval.
• Limits on Alterations: The Tenant shall not make any structural alterations to the Premises.
• Landlord's Approval Rights: The Landlord shall have the right to approve all plans and specifications for any alterations or improvements.
• Restoration Obligations: Upon the termination of this Lease, the Tenant shall, at its own expense, restore the Premises to its original condition, reasonable wear and tear excepted. [Option: Unless otherwise agreed in writing by the Landlord.]
• Permitted Signage: The Tenant shall have the right to install signage on the Premises in accordance with the Landlord's signage guidelines. [Attach Signage Guidelines as Exhibit C].
• Build-Out Allowance: The Landlord shall provide the Tenant with a build-out allowance of [Dollar Amount] to be used for improvements to the Premises.
• Compliance with Codes: All alterations and improvements shall comply with all applicable building codes and regulations.

8. Assignment and Subleasing

The Tenant shall not assign this Lease or sublet all or any part of the Premises without the Landlord's prior written consent, which consent shall not be unreasonably withheld.

• Landlord Consent Requirements: The Landlord's consent shall be required for any assignment or subletting.
• Permitted Transferees: The Landlord may not unreasonably withhold consent for assignment or subletting to a financially responsible and reputable transferee.
• Landlord Review: Landlord shall have [Number] days to review any proposed assignment or sublease.

9. Insurance

The Landlord and Tenant shall maintain the following insurance coverage:

• Landlord's Insurance: The Landlord shall maintain fire and casualty insurance on the building in an amount equal to the full replacement cost thereof.
• Tenant's Insurance: The Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, and business interruption insurance.
• Workers Compensation: Tenant shall maintain workers compensation insurance as required by law.
• Acceptable Carriers: All insurance policies shall be issued by reputable insurance companies licensed to do business in the State of New Jersey.
• Certificates of Insurance: The Tenant shall provide the Landlord with certificates of insurance evidencing the required coverage.

10. Indemnification

The Tenant shall indemnify and hold harmless the Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of or relating to the Tenant's use of the Premises or the Tenant's breach of this Lease.

• Mutual or Unilateral: [Specify if Indemnification is Mutual or Unilateral].
• Types of Claims Covered: [Specify types of claims covered].
• Exceptions: [Specify any exceptions to the indemnification provision].

11. Destruction and Casualty

If the Premises are damaged by fire, flood, or other casualty, the following shall apply:

• Rent Abatement: Rent shall abate during the period of time that the Premises are untenantable.
• Repair Obligations: The Landlord shall have [Number] days to commence repairs.
• Termination Rights: If the Premises are not repaired within [Number] days, the Tenant shall have the right to terminate this Lease.

12. Eminent Domain

If all or any part of the Premises is taken by eminent domain, the following shall apply:

• Termination: This Lease shall terminate as to the part so taken as of the date title vests in the condemning authority.
• Allocation of Compensation: Any compensation awarded for the taking shall be allocated as follows: [Specify Allocation of Compensation].

13. Default and Remedies

The following shall constitute events of default under this Lease:

• Events of Default:
  • Monetary Default: Failure to pay rent when due.
  • Non-Monetary Default: Failure to comply with any other term or condition of this Lease.
• Landlord's Notice and Cure Rights: The Landlord shall give the Tenant written notice of any default, and the Tenant shall have [Number] days to cure the default. [Comply with New Jersey notice requirements for default and eviction.]
• Tenant's Notice and Cure Rights: The Tenant shall give the Landlord written notice of any default, and the Landlord shall have [Number] days to cure the default.
• Landlord's Remedies: Upon the Tenant's default, the Landlord shall have the right to pursue all available remedies, including termination of the Lease, reentry and repossession of the Premises, and recovery of damages. [Ensure compliance with New Jersey's Anti-Eviction Act.]
• Tenant's Remedies: Upon the Landlord's default, the Tenant shall have the right to pursue all available remedies, including injunctive relief and recovery of damages.

14. Surrender of Premises

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

• Restoration: The Tenant shall remove all of its personal property and fixtures from the Premises. [Refer to Section 7 regarding restoration obligations.]
• Cleaning Requirements: Tenant shall leave the premises in broom-clean condition.
• Abandoned Property: Any property left on the Premises after the termination of this Lease shall be deemed abandoned and may be disposed of by the Landlord.

15. Early Termination

This Lease may be terminated prior to the expiration date only under the following circumstances:

• Mutual Agreement: By mutual written agreement of the Landlord and Tenant.
• For Cause: [Specify circumstances for termination for cause].
• Termination Fee: If the Tenant terminates this Lease early, the Tenant shall pay to the Landlord a termination fee of [Dollar Amount].
• Buyout Provision: The Tenant shall have the option to buy out the remainder of the lease term for [Dollar Amount].

16. Holding Over

If the Tenant remains in possession of the Premises after the expiration of this Lease, such holding over shall be deemed a month-to-month tenancy, terminable by either party with [Number] days' written notice. The rent during the holdover period shall be [Percentage]% of the rent in effect during the last month of the Lease term.

17. Representations and Warranties

Each party represents and warrants to the other that it has the full right, power, and authority to enter into this Lease and to perform its obligations hereunder.

• Authority to Sign: Each party warrants that the person signing this lease on its behalf has full authority to do so.
• Legal Compliance: Landlord warrants that the premises are in compliance with all applicable laws and regulations at the time of lease commencement.

18. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by force majeure, including acts of God, war, terrorism, riots, fire, flood, or other casualty.

• Defining Events: [Specifically define events considered Force Majeure, e.g., pandemics, government shutdowns].

19. Estoppel Certificates

The Tenant shall, within [Number] days after written request by the Landlord, execute and deliver to the Landlord an estoppel certificate confirming the terms of this Lease.

20. Access Rights

The Landlord shall have the right to enter the Premises upon [Number] hours' written notice for the purpose of inspection or making repairs.

• Emergency vs. Routine: In case of emergency, the Landlord may enter the Premises without notice.
• Business Interruption Compensation: The Landlord shall use reasonable efforts to minimize disruption to the Tenant's business.
• Showing to Prospective Tenants/Buyers: The Landlord shall have the right to show the Premises to prospective tenants or buyers upon reasonable notice.

21. Environmental Matters

The Tenant shall comply with all applicable environmental laws and regulations.

• Hazardous Substances: The Tenant shall not store, use, or dispose of any hazardous substances on the Premises without the Landlord's prior written consent.
• Environmental Indemnity: The Tenant shall indemnify and hold harmless the Landlord from and against any and all environmental liabilities arising out of the Tenant's use of the Premises.
• Disclosure of Known Conditions: [Include any required disclosures under New Jersey's environmental laws, such as ISRA, lead paint, or asbestos.]

22. Americans with Disabilities Act (ADA)

[Specify responsibilities for ADA compliance. Who is responsible for ensuring premises meet applicable standards or pay for modifications.]

23. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved as follows:

• Negotiation: The parties shall first attempt to resolve the dispute through good faith negotiations.
• Mediation: If the parties are unable to resolve the dispute through negotiation, they shall submit the dispute to mediation.
• Arbitration: [Specify if arbitration is required. If so, specify rules and procedures.]
• Litigation: If the parties are unable to resolve the dispute through negotiation, mediation, or arbitration, either party may bring an action in a court of competent jurisdiction in [County] County, New Jersey.
  • Jurisdiction and Venue: Jurisdiction and venue shall be in [County] County, New Jersey.
• Available Remedies: [Specify available remedies.]

24. Miscellaneous

• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of New Jersey.
• Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Amendment: This Lease may be amended only by a written instrument signed by both parties.
• Notice: All notices under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.
  • Landlord Notice Address: [Lessor Notice Address]
  • Tenant Notice Address: [Lessee Notice Address]
• Waiver: No waiver of any breach of this Lease shall be deemed a waiver of any subsequent breach.
• Entire Agreement: 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.
• 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.
• [Address particular New Jersey requirements: registration of commercial leases, Truth-in-Renting Act disclosures (if applicable), limitations on acceleration clauses, security deposit rules, compliance with the Anti-Eviction Act, rules about confession of judgment clauses, fire safety registration, rules about transfer taxes or realty transfer fees, ISRA waivers, requirements for lead paint, asbestos, and environmental hazard disclosures if property has known issues, state-specific statutory notice requirements for renewal or non-renewal, compliance with municipal rent control or use restrictions, options for prevailing party attorney's fees (as permitted by New Jersey law).]

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

[Lessor Name]

By: [Lessor Representative Name]

Title: [Lessor Representative Title]

[Lessee Name]

By: [Lessee Representative Name]

Title: [Lessee Representative Title]