New York restaurant lease agreement template

New York Restaurant Lease Agreement

This New York Restaurant Lease Agreement (the "Agreement") is made and entered into as of this [Date], by and between [Landlord Full Legal Name], a [Landlord Entity Type, e.g., Individual, LLC], residing at [Landlord Address] ("Landlord"), and [Tenant Full Legal Name], a [Tenant Entity Type, e.g., Corporation, Partnership], with its principal place of business at [Tenant Address] ("Tenant"). If applicable, the Tenant's registered agent in New York is [Registered Agent Name], located at [Registered Agent Address]. Landlord's authorized signatory is [Landlord Signatory Name]. Tenant's authorized signatory is [Tenant Signatory Name].

Premises

Option A: The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Street Address], Block [Block Number], Lot [Lot Number], in the Borough of [Borough], City and State of New York (the "Premises").

Option B: The Premises consist of approximately [Square Footage] square feet of space, as outlined on Exhibit A attached hereto, including the kitchen area, dining area, storage area, and restroom facilities. The Premises also include/exclude [Inclusion/Exclusion of Basement/Cellar Rights], [Inclusion/Exclusion of Rooftop Rights], and/or [Description of Outdoor Seating/Sidewalk Café Areas]. The ceiling height in the Premises is [Ceiling Height].

Permitted Use

Option A: The Premises shall be used and occupied solely for the purpose of operating a restaurant, including dine-in, take-out, and catering services (the "Permitted Use"). Permitted hours of operation are [Operating Hours]. The Tenant is/is not permitted to serve alcoholic beverages, subject to obtaining all necessary licenses and permits.

Option B: The Permitted Use is limited to the following: [Specific Restaurant Type/Cuisine Restrictions, e.g., no fast food, only Italian cuisine]. No other uses, including retail sales unrelated to the restaurant business, shall be permitted. Live entertainment is/is not permitted, subject to applicable regulations. The Tenant shall comply with all New York zoning and use regulations, and the Certificate of Occupancy shall match the intended use.

Access and Signage

Option A: The Tenant shall have exclusive/shared access to the Premises through the main entrance.

Option B: The Tenant shall have the right to install signage, subject to Landlord's approval and compliance with all applicable laws and regulations, including obtaining necessary permits from the New York City Department of Buildings. Landlord must approve signage plans within [Number] days. Tenant has rights to use sidewalk or outdoor areas under local permitting from NYC DOT/Department of Consumer and Worker Protection.

Lease Term

Option A: The term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date] (the "Lease Term").

Option B: The Tenant shall have the option to renew this Lease for [Number] additional term(s) 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 Lease Term. The rent for the renewal term shall be determined as specified below. Rent commencement is triggered by [Trigger Event, e.g., Certificate of Occupancy issuance]. Rent abatement/free rent period: [Details of Rent Abatement Period].

Rent

Option A: The base rent for the Premises shall be [Dollar Amount] per year, payable in equal monthly installments of [Dollar Amount], in advance on the first day of each month, commencing on [Rent Commencement Date].

Option B: The base rent shall escalate as follows: [Escalation Schedule, e.g., annual percentage increase, CPI increase]. Additional rent includes: [Description of Additional Rent Items, e.g., percentage rent on gross sales exceeding a specified amount]. The security deposit shall be [Dollar Amount], held in a New York State escrow account as required by law. Late payment penalties are [Late Payment Penalty Description]. Returned check fees are [Returned Check Fee Amount]. Tenant shall be responsible for payment of all New York City and New York State taxes, including Commercial Rent Tax and sales tax on commercial rent.

Common Area Maintenance (CAM)

Option A: The Tenant shall be responsible for its pro rata share of CAM expenses, which shall include: [List of CAM Expenses, e.g., water/sewer charges, refuse/recycling, pest control, sidewalk cleaning/snow removal, fire suppression system inspection, grease trap and hood cleaning, health and fire inspection compliance costs, and HVAC service].

Option B: CAM expenses shall not exceed [Percentage]% of the annual rent. Landlord shall provide an annual accounting of CAM expenses to the Tenant.

Utilities

Option A: The Tenant shall be responsible for all utilities, including gas and electric, directly billed by the utility companies. The Premises are/are not separately metered. If not separately metered, submetering will be implemented.

Option B: Deliveries are permitted during the hours of [Delivery Hours], using the designated loading zone located at [Loading Zone Location].

Alterations and Improvements

Option A: The Tenant shall have the right to perform restaurant-specific buildouts and alterations, including kitchen equipment installation, venting, exhaust systems, gas line installation, electrical upgrades, and ADA restroom modifications, subject to Landlord's prior written approval.

Option B: All alterations shall be performed in compliance with all applicable laws and regulations, including obtaining all necessary permits from the New York City Department of Buildings, FDNY, DOH, and DOB inspections. Tenant must submit plans for Landlord's approval, which cannot be unreasonably withheld, within [Number] days. Upon termination of the Lease, the Tenant shall/shall not be required to restore the Premises to its original condition, except for reasonable wear and tear.

Compliance with Laws

Option A: The Tenant shall comply with all applicable laws and regulations, including health codes, fire/life safety codes, building codes, ADA requirements, food handler permits, PCB, lead/grease/chemical handling regulations, and liquor licensing requirements, including Community Board notice.

Option B: The Landlord shall be responsible for maintaining the base building in compliance with all applicable codes and regulations.

Maintenance and Repair

Option A: The Landlord shall be responsible for maintaining the roof, foundation, and exterior walls of the Premises. The Tenant shall be responsible for maintaining the interior of the Premises, including HVAC, kitchen systems, plumbing, fire suppression/Ansul systems, grease traps, hoods, and all food safety-related systems.

Option B: The Tenant shall provide regular reporting/notification to the Landlord of any damages or required repairs.

Landlord's Access

Option A: The Landlord shall have the right to access the Premises for inspections, repairs, and emergencies, provided that the Landlord gives the Tenant reasonable notice, except in cases of emergency.

Option B: Landlord's access shall be limited to reasonable hours so as not to interrupt the Tenant's business operations.

Insurance

Option A: The Tenant shall maintain the following insurance policies: property insurance, business interruption insurance, commercial general liability insurance (with New York-specific coverage minimums of [Dollar Amount] and "additional insured" endorsements to Landlord and underlying mortgagees), workers' compensation insurance, and dram shop/liquor liability insurance, as applicable.

Option B: The Tenant shall comply with all insurance requirements of lenders and restaurant delivery operators. Certificates of Insurance must be provided to Landlord annually.

Fire and Casualty

Option A: In the event of fire or other casualty, the rent shall be abated in proportion to the extent to which the Premises are untenantable. If the Premises are rendered wholly untenantable, either party may terminate this Lease.

Option B: The Landlord shall have [Number] days to repair the Premises, and if repairs cannot be completed within that time, the Tenant shall have the option to terminate the Lease. This clause references New York’s legal requirements for notice, mitigation, and abatement rights.

Default and Remedies

Option A: If the Tenant fails to pay rent or otherwise breaches this Lease, the Landlord shall have the right to terminate this Lease and pursue all available remedies under New York Real Property Law and New York City commercial landlord-tenant statutes, including eviction.

Option B: The Tenant shall have a grace period of [Number] days to cure any monetary default. Landlord's self-help is prohibited without court order. Landlord's waiver of any breach shall not constitute a waiver of any subsequent breach.

Subletting and Assignment

Option A: The Tenant shall not sublet the Premises or assign this Lease without the Landlord's prior written consent, which shall not be unreasonably withheld.

Option B: The Landlord shall have the right of first refusal to approve any proposed sublease or assignment. "Good guy" guarantees under New York practice apply, with [Guarantor Name] acting as guarantor, subject to notice, surrender, and personal liability limitations. This includes handling of restaurant license transfers and recapture rights.

Governmental Permits and Licenses

Option A: The Tenant shall be responsible for obtaining all necessary governmental permits, licenses, and certifications, including permits from the NYC Department of Health, FDNY, State Liquor Authority, sidewalk café permits, and waste handling permits.

Option B: Both parties shall cooperate in good faith to obtain all necessary permits and licenses.

Surrender of Premises

Option A: Upon termination of this Lease, the Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted, removing all of Tenant's personal property, including kitchen equipment, FFE, venting systems, and grease traps, and restoring floors/walls/fixtures.

Option B: The security deposit shall be returned to the Tenant within [Number] days of the termination of the Lease, less any deductions for damages or unpaid rent. Rent reconciliation shall occur within [Number] days. Holdover terms are subject to NYC prevailing rates/penalties.

Indemnification

Option A: The Tenant shall indemnify and hold the Landlord harmless from any and all claims, damages, and liabilities arising out of the Tenant's use of the Premises.

Option B: This includes hazardous materials and environmental indemnity with reference to food/grease disposal and local ordinances.

Sanitation and Pest Control

Option A: The Tenant shall maintain the Premises in a clean and sanitary condition and shall be responsible for pest control.

Option B: The Tenant shall comply with all food-related sanitation/cleaning compliance and Department of Health reporting requirements.

Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through negotiation, mediation, and/or arbitration prior to litigation, in accordance with the rules of the American Arbitration Association.

Option B: This Lease shall be governed by and construed in accordance with the laws of the State of New York, and the exclusive jurisdiction and venue for any legal action shall be in New York County.

Miscellaneous

Option A: This Lease constitutes the entire agreement between the parties and supersedes all prior negotiations and agreements.

Option B: This Lease contains “no waiver,” “severability,” and “entire agreement” clauses and includes required disclosure/statutory notices under New York law (e.g., sprinkler system statement, certificate of occupancy status).

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

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[Landlord Signatory Name], Landlord

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[Tenant Signatory Name], Tenant