New York commercial lease agreement template

New York Commercial Lease Agreement

This Commercial Lease Agreement (the “Lease”) is made and entered into as of this [Date], by and between [Landlord's Full Legal Name], a [Landlord's Entity Type, e.g., Limited Liability Company], with an address at [Landlord's Address] (“Landlord”), and [Tenant's Full Legal Name], a [Tenant's Entity Type, e.g., Corporation], with an address at [Tenant's Address] (“Tenant”).

• Landlord Contact Information:
  • Name: [Landlord Contact Name]
  • Phone: [Landlord Contact Phone]
  • Email: [Landlord Contact Email]
• Tenant Contact Information:
  • Name: [Tenant Contact Name]
  • Phone: [Tenant Contact Phone]
  • Email: [Tenant Contact Email]
• Property Manager (if any):
  • Name: [Property Manager Name]
  • Address: [Property Manager Address]
  • Phone: [Property Manager Phone]
  • Email: [Property Manager Email]
• Landlord's Legal Representative (if any):
  • Name: [Landlord Legal Rep Name]
  • Address: [Landlord Legal Rep Address]
  • Phone: [Landlord Legal Rep Phone]
  • Email: [Landlord Legal Rep Email]
• Tenant's Legal Representative (if any):
  • Name: [Tenant Legal Rep Name]
  • Address: [Tenant Legal Rep Address]
  • Phone: [Tenant Legal Rep Phone]
  • Email: [Tenant Legal Rep Email]

1. Leased Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises (the "Premises") located at [Full Street Address], Suite/Unit [Suite/Unit Number], Floor [Floor Number], in the building known as [Building Name], commonly referred to as [Commonly Known Address], with the following description: [Floor Plan Description].

• Usable Square Footage: [Usable Square Footage] square feet
• Rentable Square Footage: [Rentable Square Footage] square feet
• Common Areas: [Description of Common Areas, e.g., hallways, restrooms]
• Exclusive Use Areas: [Description of Exclusive Use Areas, e.g., patio]
• Legal Property Description: [Legal Property Description, if available]

2. Lease Term

The term of this Lease shall commence on [Start Date] (the "Commencement Date") and shall expire on [End Date] (the "Expiration Date").

• Options:
  • Option A: Fixed Term: The term shall be a fixed term ending on the Expiration Date.
  • Option B: Periodic Term: The term shall be [Number] [Days/Weeks/Months], automatically renewing unless either party gives [Number] [Days/Weeks/Months] notice prior to the end of the then-current period.
  • Option C: Month-to-Month: The term shall be month-to-month, commencing on the Commencement Date and continuing until terminated by either party with [Number] days’ written notice.
• Renewal Options:
  • Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the Expiration Date. The rent for each renewal term shall be [Rent Escalation Method, e.g., Fair Market Value, CPI adjusted, Fixed Increase].
  • Option B: No renewal option is granted.
• Holding Over: Any holding over by Tenant after the Expiration Date shall be construed as a month-to-month tenancy, subject to all of the terms and conditions of this Lease, except that the monthly rent shall be [Percentage]% of the then current monthly rent.
• Early Termination:
  • Option A: Tenant shall have the option to terminate this lease early by providing [Number] months written notice and paying a termination fee equal to [Number] months rent.
  • Option B: No early termination is permitted.
  • Option C: Termination due to specific events: Tenant may terminate this lease if [Specific event, e.g., business failing to reach specific sales amount] occurs, with [Number] days written notice.

3. Rent

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

• Rent Escalation:
  • Option A: Fixed Increase: The base rent shall increase by [Percentage]% on [Date/Anniversary Date] of each year.
  • 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.
  • Option C: Percentage Increase: The base rent shall increase by [Percentage]% every [Number] years.
  • Option D: No escalation. The rent shall remain the same throughout the term.
• Payment Method: Rent shall be paid by [Payment Method, e.g., check, wire transfer, ACH] to [Payee Name/Account Information].
• Late Fees: If rent is not received by the [Number] day of the month, a late fee of [Dollar Amount or Percentage]% shall be assessed.
• Returned Payment Fees: A fee of [Dollar Amount] will be charged for any returned payment.
• Rent Abatement:
  • Option A: The first [Number] months of rent shall be abated.
  • Option B: Rent will be abated by [Percentage]% if [Event] occurs.
  • Option C: No rent abatement.
• Rent Reduction:
  • Option A: The rent shall be reduced by [Percentage]% if [Condition] occurs.
  • Option B: No rent reduction clauses apply.

4. Expenses and Operating Costs

This Lease shall be a [Lease Type, e.g., Triple Net (NNN), Gross, Modified Gross] Lease.

• Property Taxes:
  • Option A: Tenant shall pay [Percentage]% of all real property taxes.
  • Option B: Landlord shall pay all real property taxes.
  • Option C: Tenant responsible only for increases in property taxes above the base year of [Year].
• Insurance:
  • Option A: Tenant shall pay [Percentage]% of the Landlord's building insurance.
  • Option B: Landlord shall pay all building insurance.
• Utilities:
  • Water: [Party Responsible, e.g., Landlord, Tenant]
  • Gas: [Party Responsible, e.g., Landlord, Tenant]
  • Electric: [Party Responsible, e.g., Landlord, Tenant]
  • Sewer: [Party Responsible, e.g., Landlord, Tenant]
  • Trash Removal: [Party Responsible, e.g., Landlord, Tenant]
• Common Area Maintenance (CAM):
  • Option A: Tenant shall pay its pro rata share of CAM charges, which is [Percentage]% of the total CAM charges. CAM charges include [List of Included CAM Charges, e.g., landscaping, snow removal, parking lot maintenance].
  • Option B: Landlord shall pay all CAM charges.
• Association Fees: [Party Responsible, e.g., Landlord, Tenant, N/A]
• Janitorial Expenses: [Party Responsible, e.g., Landlord, Tenant]
• Maintenance Costs: [Party Responsible, e.g., Landlord, Tenant]

5. Maintenance and Repairs

• Landlord's Responsibilities: Landlord shall be responsible for maintaining and repairing the following:
  • Structure of the building (roof, foundation, exterior walls)
  • Building Systems (HVAC, plumbing, electrical) – excluding Tenant's specific equipment.
  • Common Areas
  • Option A: Landlord will maintain periodic inspections every [Number] months.
  • Option B: No periodic inspections are required.
• Tenant's Responsibilities: Tenant shall be responsible for maintaining and repairing the following:
  • Interior of the Premises, including walls, floors, and ceilings.
  • Tenant's specific equipment
  • Maintaining the premises in a clean and safe condition.
• Alterations and Improvements:
  • Option A: Tenant shall not make any alterations or improvements to the Premises without Landlord's prior written consent.
  • Option B: Tenant may make alterations with Landlord's approval, which shall not be unreasonably withheld.
  • Option C: Tenant may make alterations costing less than [Dollar Amount] without Landlord's approval.
  • Restoration: Upon termination of this Lease, Tenant shall [Shall/Shall Not] restore the Premises to its original condition, reasonable wear and tear excepted.
  • Tenant Improvement Allowance: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.

6. Use of Premises

The Tenant shall use the Premises solely for the purpose of [Permitted Use, e.g., retail sales, office space, restaurant] and for no other purpose.

• Prohibited Uses: The Tenant shall not use the Premises for any of the following purposes: [List of Prohibited Uses, e.g., residential use, adult entertainment, hazardous materials storage].
• Exclusive Rights: [Does/Does Not] Tenant have exclusive rights to [Type of Business/Product] within the building/development.
• Compliance with Laws: Tenant shall comply with all applicable zoning laws, licensing requirements, government regulations, and all New York City and New York State fire safety and building codes, including maintaining a valid Certificate of Occupancy.
• Hazardous Substances: Tenant shall not store, use, or dispose of any hazardous substances on the Premises in violation of applicable laws. Tenant shall indemnify and hold Landlord harmless from any claims arising out of Tenant's use of hazardous substances.

7. Assignment and Subleasing

• Option A: Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which may be withheld in Landlord's sole discretion.
• Option B: Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which shall not be unreasonably withheld.
• Option C: Tenant may assign this Lease or sublet the Premises with Landlord's consent, which will not be unreasonably withheld. Landlord will have [Number] days to respond to Tenant's request.
  • Procedure: Tenant shall provide Landlord with [Number] days' written notice of any proposed assignment or sublease, including information about the proposed assignee or sublessee.
  • Financial Responsibility: Tenant shall remain liable for all obligations under this Lease, even if the Lease is assigned or the Premises is sublet, unless Landlord releases Tenant in writing.

8. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant's obligations under this Lease.

• Permitted Uses: Landlord may use the security deposit to cover any damages to the Premises, unpaid rent, or other amounts owed by Tenant under this Lease.
• Return of Security Deposit: The security deposit, less any deductions, shall be returned to Tenant within [Number] days after the termination of this Lease and Tenant's surrender of the Premises. Landlord will provide an itemized written statement of deductions if any.
• Interest: [Does/Does Not] Landlord pay interest on the security deposit as required by local law.

9. Insurance

Tenant shall maintain the following insurance coverage:

• Property Insurance: Covering Tenant's personal property and improvements in the Premises. Minimum coverage amount: [Dollar Amount].
• Liability Insurance: Covering bodily injury and property damage. Minimum coverage amount: [Dollar Amount].
• Business Interruption Insurance: Covering lost profits due to business interruption.
• Worker's Compensation Insurance: As required by law.
• Landlord as Named Insured: Landlord shall be named as an additional insured on Tenant's liability insurance policy.
• Waiver of Subrogation: The insurance policies shall include a waiver of subrogation in favor of Landlord.
• Evidence of Insurance: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage.
• Flood Insurance: [Required/Not Required].
• Terrorism Insurance: [Required/Not Required].

10. Indemnification and Limitation of Liability

• Indemnification: Tenant shall indemnify and hold Landlord harmless from any claims arising out of Tenant's use of the Premises or Tenant's breach of this Lease.
• Limitation of Liability: To the extent permitted by law, Landlord shall not be liable for any consequential, incidental, or punitive damages.

11. Access

Landlord shall have the right to enter the Premises at reasonable times for the purpose of inspection, repairs, showing the Premises to prospective tenants or buyers, security, and emergencies.

• Notice: Except in cases of emergency, Landlord shall provide Tenant with [Number] hours' notice prior to entering the Premises.
• New York Specific: Landlord should only enter the premises during standard business hours, except in emergencies, and after providing appropriate notice to the Tenant.

12. Signage

Tenant shall have the right to install signage on the exterior of the Premises, subject to Landlord's approval and compliance with all applicable building and city regulations.

• Approval: Landlord's approval shall not be unreasonably withheld.
• Restrictions: Signage shall be consistent with the building's overall aesthetic and shall not obstruct other tenants' signage.
• Removal: Upon termination of this Lease, Tenant shall remove all signage and repair any damage caused by the removal.

13. Compliance with Laws

Tenant shall comply with all applicable federal, state, and local laws and regulations, including the Americans with Disabilities Act (ADA) and all applicable New York City human rights laws.

• ADA Compliance: Tenant shall be responsible for making the Premises accessible to persons with disabilities as required by the ADA. [Allocate responsibility for ADA compliance costs].
• Historic Buildings: If the Premises is located in a historic or landmark building, Tenant shall comply with all applicable preservation regulations.

14. Default and Termination

• Events of Default: The following shall constitute events of default by Tenant:
  • Failure to pay rent when due.
  • Breach of any other material term of this Lease.
  • Abandonment of the Premises.
• Notice and Cure: Landlord shall provide Tenant with written notice of any default and shall allow Tenant [Number] days to cure the default.
• Remedies: Upon the occurrence of an event of default, Landlord shall have the right to:
  • Terminate this Lease.
  • Re-enter and re-let the Premises.
  • Accelerate rent.
  • Pursue other remedies available at law or in equity.

15. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease due to force majeure events, such as acts of God, war, strikes, or governmental regulations.

• Notice: The affected party shall provide the other party with prompt notice of the force majeure event.
• Time Extension: The time for performance shall be extended for the duration of the force majeure event.

16. Casualty and Condemnation

• Casualty: If the Premises is damaged by fire or other casualty, Landlord shall repair the Premises within a reasonable time. Rent shall be abated during the period of repair.
  • New York Specific: Reference RPL §227 regarding timelines for fire-related repairs.
  • Termination: If the Premises is substantially damaged, either party may terminate this Lease.
• Condemnation: If the Premises is taken by eminent domain, this Lease shall terminate. Tenant shall be entitled to compensation for its personal property and leasehold improvements.

17. Dispute Resolution

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

• Option A: Mediation: First attempt to resolve the dispute through mediation.
• Option B: Arbitration: Binding arbitration in accordance with the rules of the American Arbitration Association.
• Option C: Court Litigation: Litigation in the state or federal courts located in [County], New York.
• Applicable Law: This Lease shall be governed by and construed in accordance with the laws of the State of New York.
• Waiver of Jury Trial: [If Permitted] Both parties waive their right to a jury trial.

18. Remedies

Upon default by Tenant, Landlord shall have the following remedies, in addition to any other remedies provided by law or equity:

• Acceleration of Rent: All remaining rent due under the Lease shall become immediately due and payable.
• Re-letting Rights: Landlord may re-let the Premises and recover from Tenant any deficiency in rent.
• Recapture of Premises: Landlord may retake possession of the Premises.
• Injunctive Relief: Landlord may seek injunctive relief to prevent further violations of the Lease.

19. Subordination, Non-Disturbance, and Attornment (SNDA)

This Lease shall be subordinate to any existing or future mortgages or deeds of trust on the property. Landlord shall obtain a non-disturbance agreement from any mortgagee, ensuring that Tenant's leasehold interest will be protected in the event of foreclosure. Tenant agrees to attorn to any successor landlord.

• Estoppel Certificate: Tenant shall provide Landlord with an estoppel certificate upon request, confirming the terms of this Lease.

20. Notices

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 to the addresses set forth above.

• Email Delivery: [Allowed/Not Allowed]. If allowed, notices may be sent by email to the email addresses set forth above.
• Effective Date: The effective date of notice shall be the date of receipt.

21. Brokers' Commission

[Broker Name] represents [Landlord/Tenant/Both] in this transaction. Broker's commission shall be paid by [Landlord/Tenant].

• No Brokers: [If Applicable] Both parties represent that no brokers were involved in this transaction.

22. Rules and Regulations

Tenant shall comply with all rules and regulations of the building or development, which are attached hereto as Exhibit A and may be amended by Landlord from time to time.

23. Personal Guarantee

[Include/Exclude] Personal Guarantee: If included, attach a separate personal guarantee agreement.

24. Surrender

Upon termination of this Lease, Tenant shall surrender the Premises in broom-clean condition, free of all personal property and debris. Tenant shall remove all improvements made by Tenant, unless otherwise agreed in writing.

25. Waiver and Severability

No waiver of any provision of this Lease shall be effective unless in writing and signed by the waiving party. If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

26. New York Specific Clauses

• Waiver of Right to Trial by Jury: [Include/Exclude]
• Rent Deposit Law Compliance: Landlord certifies compliance with New York rent deposit laws.
• Certificate of Occupancy Warranty: Landlord warrants that the Premises has a valid Certificate of Occupancy for the Permitted Use.
• "Good Guy" Guarantee: [Include/Exclude]
• Fire Prevention/Escape Routes: Tenant shall comply with all fire prevention and escape route requirements mandated by local law.

27. Anti-Discrimination

The parties agree not to discriminate against any person based on race, color, religion, sex, national origin, disability, familial status, or any other protected characteristic, in violation of applicable federal, state, and local laws, including the New York City Human Rights Law.

28. Additional Clauses (Riders)

• Option to Purchase: [Include/Exclude] (If included, attach Rider A)
• Right of First Refusal: [Include/Exclude] (If included, attach Rider B)
• Parking Arrangements: [Include/Exclude] (If included, attach Rider C)
• Signage Rights: [Include/Exclude] (If included, attach Rider D)
• Co-Tenancy Contingencies: [Include/Exclude] (If included, attach Rider E)
• Green Building/Energy Compliance: [Include/Exclude] (If included, attach Rider F)
• Sustainability Requirements: [Include/Exclude] (If included, attach Rider G)
• COVID-19 Health and Safety Protocols: [Include/Exclude] (If included, attach Rider H)

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

____________________________

[Landlord's Full Legal Name]

____________________________

[Tenant's Full Legal Name]