New Jersey retail lease agreement template

New Jersey Retail Lease Agreement

This Retail Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between [Landlord Name], residing at [Landlord Address] ("Landlord"), and [Tenant Name], residing at [Tenant Address] ("Tenant").

1. Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Property Address], consisting of approximately [Square Footage] square feet, and further described as [Unit Number/Description of Retail Space] (the "Premises").

• Option A: Includes exclusive use of storefront with [Frontage Footage] linear feet of frontage.
• Option B: Includes non-exclusive access to common areas including customer parking, loading docks, and designated pathways.

2. Permitted Use

The Premises shall be used solely for the purpose of operating a [Specific Type of Retail Business, e.g., clothing boutique, bakery] business, and for no other purpose whatsoever.

• Option A: Tenant shall not sell [Prohibited Products/Services] on the Premises.
• Option B: Tenant shall comply with all zoning ordinances and municipal regulations regarding retail use. Tenant will also obtain and maintain all required business licenses.

3. Lease Term

The term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date], unless sooner terminated as provided herein.

• Option A: Tenant shall have [Number] option(s) to renew this Lease for a term of [Renewal Term Length] years each, upon written notice to Landlord at least [Number] days prior to the expiration of the then-current term.
• Option B: This lease is not subject to renewal or extension.

4. Rent

The base rent for the Premises shall be [Rent Amount] per [Month/Year], payable in advance on the [Day] day of each [Month/Year] during the Lease Term.

• Option A: In addition to base rent, Tenant shall pay to Landlord a percentage rent equal to [Percentage]% of gross sales exceeding [Sales Threshold].
• Option B: Rent shall increase by [Percentage]% annually, commencing on [Date].

5. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount]. This deposit shall be held by the Landlord in compliance with New Jersey law and shall be returned to Tenant, less any deductions for damages or unpaid rent, within [Number] days after the termination of the Lease.

• Option A: Security deposit shall be kept in a separate, interest-bearing account, with interest accruing to Tenant in compliance with NJ law.
• Option B: Security deposit may be commingled with Landlord's other funds, in compliance with applicable NJ law.

6. Common Area Maintenance (CAM)

Tenant shall pay its pro rata share of Common Area Maintenance (CAM) costs, which shall include, but not be limited to, maintenance, repair, and upkeep of common areas, landscaping, and parking areas. Tenant’s pro rata share shall be [Percentage]% of the total CAM costs.

• Option A: CAM charges are capped at [Dollar Amount] per year.
• Option B: CAM expenses will be reconciled annually, with overages invoiced to Tenant.

7. Utilities

Tenant shall be responsible for the payment of all utilities used on the Premises, including but not limited to electricity, gas, water, and sewer.

• Option A: Utilities are separately metered to the Premises.
• Option B: Utilities will be allocated on a pro rata basis based on square footage.

8. Tenant Improvements

Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises, subject to Landlord’s approval of plans and specifications.

• Option A: Tenant is responsible for all tenant improvements at their own cost.
• Option B: All alterations and improvements shall become the property of the Landlord upon termination of the Lease.

9. Maintenance and Repairs

Landlord shall be responsible for maintaining the structural elements of the Premises, including the roof, exterior walls, and foundation. Tenant shall be responsible for maintaining the interior of the Premises, including but not limited to fixtures, equipment, and signage.

• Option A: Tenant is responsible for maintaining the storefront glass and signage.
• Option B: Landlord is responsible for maintaining and repairing the HVAC system.

10. Insurance

Tenant shall maintain commercial general liability insurance with minimum coverage of [Dollar Amount] per occurrence and shall name Landlord as an additional insured. Tenant shall also maintain property and contents insurance.

• Option A: Tenant must provide proof of insurance to Landlord prior to commencement of the lease.
• Option B: Landlord will provide property insurance, and Tenant will reimburse Landlord for a pro-rata share of the premium.

11. Assignment and Subletting

Tenant shall not assign this Lease or sublet the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld.

• Option A: Assignment or subletting requires a fee of [Dollar Amount].
• Option B: Landlord has the right to recapture the Premises if Tenant requests assignment or subletting.

12. Default

If Tenant fails to pay rent when due or otherwise breaches this Lease, Landlord shall have the right to pursue all available remedies under New Jersey law, including but not limited to eviction and recovery of damages.

• Option A: Late payment of rent shall incur a late fee of [Dollar Amount].
• Option B: Landlord shall provide written notice of default and a cure period of [Number] days.

13. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City, New Jersey], prior to initiating any legal action. If mediation is unsuccessful, the parties agree to submit to binding arbitration in accordance with the rules of the American Arbitration Association in [City, New Jersey]. The laws of the State of New Jersey shall govern this agreement.

• Option A: Landlord and Tenant agree to waive jury trial in any action arising out of this lease.
• Option B: Legal fees and costs to the prevailing party shall be paid by the non-prevailing party.

14. Move-In/Move-Out

Prior to taking possession, the Parties will conduct a pre-occupancy inspection and create a documented record of the condition of the premises, signed and dated by both. At the end of the lease term, a similar post-occupancy inspection will occur to assess any damages. Tenant is responsible for returning the premises in the same condition as when occupancy began, with reasonable wear and tear excepted.

• Option A: Any trade fixtures of the tenant shall remain property of the tenant at lease end and may be removed, so long as the tenant restores any damage to the premises incurred during removal.
• Option B: All improvements to the premises become property of the landlord upon lease termination.

15. Representations and Warranties

Landlord warrants that it has the right to lease the Premises and that the Premises are in compliance with all applicable laws and regulations.

• Option A: Landlord represents that there are no known environmental hazards on the property, subject to Tenant's due diligence.
• Option B: Landlord has provided Tenant with a copy of all known environmental reports pertaining to the property.

16. Indemnification

Tenant shall indemnify and hold Landlord harmless from any and all claims, damages, or liabilities arising out of Tenant’s use of the Premises.

• Option A: Landlord shall be indemnified by tenant for any customer injury sustained while on the leased property.
• Option B: Tenant shall be indemnified by Landlord for any violations of law caused by Landlord.

17. Miscellaneous

This Lease constitutes the entire agreement between the parties and supersedes all prior negotiations and agreements. This Lease may be amended only by a writing signed by both parties. All notices required under this lease shall be delivered to the addresses provided on page one.

• Option A: New Jersey Law shall govern this lease.
• Option B: If any clause in the lease is found unlawful, the other parts of the lease will still apply.

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

____________________________

[Landlord Name], Landlord

____________________________

[Tenant Name], Tenant