New Mexico restaurant lease agreement template
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How New Mexico restaurant lease agreement Differ from Other States
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New Mexico requires disclosure of material facts regarding environmental hazards, unique compared to some other states’ disclosure norms.
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The implied warranty of habitability in New Mexico applies to commercial properties, including restaurants, which differs from many states.
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New Mexico's eviction procedures for commercial properties may be faster and less formal than in states with more tenant protections.
Frequently Asked Questions (FAQ)
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Q: Is a written restaurant lease required in New Mexico?
A: While not strictly required, a written lease is highly recommended to avoid disputes and clearly establish terms.
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Q: What disclosures must landlords provide in a New Mexico restaurant lease?
A: Landlords must disclose environmental hazards and any material information affecting the property’s safety or usability.
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Q: How much security deposit can be charged for a restaurant lease in New Mexico?
A: There is no state-wide cap for commercial leases, but the deposit amount should be reasonable and agreed in writing.
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New Mexico Restaurant Lease Agreement
This New Mexico Restaurant Lease Agreement is made and entered into as of [Date], by and between [Landlord's Full Legal Name], residing at [Landlord's Full Address] ("Landlord"), and [Tenant's Full Legal Name], residing at [Tenant's Full 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] (the "Premises"), described as follows: [Detailed Description of Premises, including total square footage, seating capacity, layout, kitchen and food preparation areas, storage, dedicated parking, patio/outdoor dining spaces, restrooms, and any drive-through facilities].
2. Permitted Use
Option A: The Premises shall be used solely for the operation of a [Type of Cuisine] restaurant (the "Restaurant"), with hours of operation from [Start Time] to [End Time].
Option B: The Premises shall be used solely for the operation of a [Type of Cuisine] restaurant, including the service of alcoholic beverages subject to obtaining and maintaining all required liquor licenses in accordance with New Mexico law.
3. Licenses and Permits
The Tenant shall be responsible for obtaining and maintaining all required New Mexico and local food service permits, liquor licenses (including New Mexico alcohol server certification and Dram Shop Act compliance), health department clearances, fire and safety certifications, and any other business licenses applicable to the operation of a restaurant in [Municipality/County].
4. Equipment and Accessibility
Option A: The Tenant is responsible for acquiring and maintaining grease trap systems, fire suppression equipment, hood/ventilation compliance under NM fire code, and ensuring ADA accessibility as required by New Mexico law.
Option B: The Landlord is responsible for maintaining grease trap systems, fire suppression equipment, hood/ventilation compliance under NM fire code, and ensuring ADA accessibility as required by New Mexico law. The tenant will reimburse Landlord in proportion to their use of the grease trap and other facilities, which shall be defined as [Percentage or other allocation methodology].
5. Odor, Noise, and Waste Disposal
The Tenant shall be responsible for regular grease removal, pest control, and compliance with New Mexico Environment Department (NMED) waste regulations. Tenant shall implement measures to control odor and noise emanating from the Premises.
6. Utilities
Option A: The Tenant shall be responsible for all utilities serving the Premises, including water, gas, HVAC, and power.
Option B: The Landlord shall provide water, gas, HVAC, and power to the Premises, and the Tenant shall reimburse the Landlord for its proportionate share of such utilities, calculated as [Percentage or other allocation methodology].
7. Lease Term
The initial term of this Lease shall be [Number] years, commencing on [Start Date] and expiring on [End Date].
Option for Renewal: The Tenant shall have the option to renew this Lease for [Number] additional terms of [Number] years each, provided that the Tenant gives the Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current term.
8. Rent
Base Rent: The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the first day of each month.
Percentage Rent: In addition to the base rent, the Tenant shall pay percentage rent equal to [Percentage]% of the Tenant's gross restaurant sales (excluding New Mexico gross receipts tax).
Security Deposit: The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount], which shall be held by the Landlord as security for the Tenant's performance of its obligations under this Lease.
9. New Mexico Gross Receipts Tax
The Tenant shall be responsible for collecting, reporting, and paying all applicable New Mexico gross receipts tax on its restaurant sales.
10. Subleasing and Assignment
Option A: The Tenant shall not sublease the Premises or assign this Lease without the Landlord's prior written consent, which consent shall not be unreasonably withheld.
Option B: The Tenant shall not sublease the Premises or assign this Lease without the Landlord's prior written consent, which consent may be withheld in Landlord’s sole discretion.
11. Alterations and Improvements
The Tenant shall not make any alterations or improvements to the Premises without the Landlord's prior written consent, which shall not be unreasonably withheld, conditioned or delayed. All plans must be submitted to the landlord and comply with local sign codes.
12. Insurance
The Tenant shall maintain restaurant industry-specific insurance, including property, general liability, liquor liability (if applicable), product liability, business interruption, and workers' compensation insurance, naming the Landlord as an additional insured. Tenant shall carry insurance at or above New Mexico statutory minimums.
13. Repair and Maintenance
The Tenant shall be responsible for the repair and maintenance of restaurant-specific equipment, refrigeration, specialized plumbing, pest control, fire suppression, and shall surrender the Premises in pre-lease condition, except for reasonable wear and tear.
14. Fixtures and Equipment
All fixtures and equipment installed by the Tenant shall remain the property of the Tenant and may be removed by the Tenant at the expiration or termination of this Lease, provided that the Tenant repairs any damage caused by such removal.
15. Default and Remedies
If the Tenant fails to pay rent or otherwise breaches this Lease, the Landlord shall have the right to retake possession of the Premises, relet the Premises, and collect damages as provided by New Mexico law.
16. Security Deposit
The Landlord shall return the security deposit to the Tenant within [Number] days after the expiration or termination of this Lease, less any amounts necessary to cover damages to the Premises or unpaid rent. The use of the security deposit must comply with New Mexico commercial lease restrictions.
17. Inspections and Access
The Landlord shall have the right to enter the Premises for inspections, repairs, or emergencies, provided that the Landlord gives the Tenant reasonable notice, except in the case of an emergency.
18. Compliance with Laws
The Tenant shall comply with all applicable Federal, New Mexico state, and local city/county restaurant, health, tax, building code, and fire code regulations.
19. Indemnification
The Tenant shall indemnify and hold the Landlord harmless from any claims, losses, or damages arising from the Tenant's operation of the Restaurant or the Tenant's breach of this Lease.
20. Assignment and Subletting
The Tenant shall not assign this Lease or sublet the Premises without the Landlord's prior written consent, which consent shall not be unreasonably withheld or delayed. Any requested assignment is subject to New Mexico transfer restrictions.
21. COVID-19 or Pandemic Clause
In the event of government-mandated closures due to a pandemic, the parties shall negotiate in good faith regarding rent abatement or deferral, and disaster response tailored for restaurant operations in New Mexico.
22. Dispute Resolution
Any disputes arising under this Lease shall be resolved through informal negotiations, then mediation or arbitration per New Mexico practices, and submission to state courts with New Mexico law as the governing law and venue.
23. Move-In and Move-Out
Tenant shall be responsible for obtaining a health department inspection/clearance prior to move-in. Landlord and tenant will complete a joint check list for return of keys and equipment upon move out.
24. Signage
All signage must be approved by the Landlord and comply with Albuquerque or respective local sign codes.
25. External Seating
External seating must comply with noise ordinances specific to New Mexico cities/municipalities.
26. Restrooms, Kitchen, and Dining Areas
The Tenant shall maintain restrooms, kitchen, and dining areas to standards prescribed by New Mexico restaurant regulations and local public health authorities, with allowance for periodic inspections by health and fire officials as required by law.
This Lease shall be governed by and construed in accordance with the laws of the State of New Mexico.
IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above.
[Landlord's Signature]
[Landlord's Printed Name]
[Tenant's Signature]
[Tenant's Printed Name]
