North Carolina commercial lease agreement template

North Carolina 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], residing at [Landlord's Address] ("Landlord"), and [Tenant's Full Legal Name], residing at [Tenant's Address] ("Tenant").

Premises

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, those certain premises (the "Premises") consisting of approximately [Square Footage] square feet, located at [Address], Unit/Suite [Unit/Suite Number], in [City], North Carolina, as depicted on Exhibit A attached hereto and incorporated herein.

Option B: The Premises consists of the entire building located at [Address], [City], North Carolina, as further described in the attached Exhibit A.

Legal Description/Property Boundaries: [Detailed Legal Description].

Common Areas: Tenant shall have the right to use the common areas of the building, including [List Common Areas, e.g., lobbies, hallways, restrooms, parking areas], subject to the rules and regulations promulgated by Landlord from time to time.

Permitted Use

Option A: The Premises shall be used solely for the purpose of [Specific Permitted Use, e.g., retail sales of clothing], and for no other purpose without the prior written consent of Landlord.

Option B: The Premises shall be used for general office use, subject to compliance with all applicable zoning regulations.

Zoning: The Premises are located within a [Zoning Designation] zoning district. Tenant is responsible for verifying that its intended use is permitted under applicable zoning laws. Landlord makes no warranty or representation regarding the suitability of the Premises for Tenant's intended use.

Term

Option A: The term of this Lease shall be for a fixed period of [Number] years, commencing on [Commencement Date] and expiring on [Expiration Date].

Option B: The term of this Lease shall be month-to-month, commencing on [Commencement Date]. Either party may terminate this Lease by providing [Number] days' written notice to the other party.

Renewal Option: Tenant shall have the option to renew this Lease for an additional term of [Number] years, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the initial term. The rental rate for the renewal term shall be [Specify Method of Determining Renewal Rent, e.g., fair market value, increased by X%].

Early Termination Option: Tenant shall have the option to terminate this Lease early by providing [Number] months written notice to Landlord and paying a termination fee equal to [Number] months' rent.

Holdover: If Tenant remains in possession of the Premises after the expiration or termination of this Lease, such occupancy shall be deemed a month-to-month tenancy, subject to all the terms and conditions of this Lease, except that the monthly rent shall be [Percentage]% of the then-current monthly rent.

Rent

Base Rent: Tenant shall pay Landlord base rent in the amount of [Dollar Amount] per month, payable in advance on the [Day] day of each month, commencing on [Commencement Date].

Payment Method: Rent shall be paid by [Specify Payment Method, e.g., check, electronic transfer] to Landlord at [Payment Address].

Escalation Clause:

Option A: The base rent shall increase annually by [Percentage]%.

Option B: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specify CPI Index]. The adjustment shall be calculated by multiplying the base rent by the percentage increase in the CPI from the prior year.

Option C: The base rent shall increase according to the following schedule:

Year 1: [Dollar Amount] per month

Year 2: [Dollar Amount] per month

Year 3: [Dollar Amount] per month

Late Fee: If rent is not received by Landlord within [Number] days after the due date, Tenant shall pay a late fee of [Dollar Amount].

North Carolina law limits late fees to the greater of $15.00 or 5% of the rental payment.

Security Deposit

Amount: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount].

Permitted Uses: Landlord may use the security deposit to cover any damages to the Premises caused by Tenant, unpaid rent, or other amounts due under this Lease.

Return of Security Deposit: Within [Number] days after the termination of this Lease and Tenant's surrender of the Premises, Landlord shall return the security deposit to Tenant, less any deductions for damages or unpaid rent, along with an itemized accounting of any deductions, as required by North Carolina law.

Holding: Landlord shall hold the security deposit in a [Bank Name] account.

Operating Expenses

Option A: Tenant shall be responsible for all operating expenses associated with the Premises, including but not limited to utilities, property taxes, insurance, and maintenance.

Option B: Landlord shall be responsible for all operating expenses associated with the Premises.

Option C (Triple Net Lease): Tenant shall pay its pro rata share of all Common Area Maintenance (CAM) charges, property taxes, and insurance premiums (collectively, "Operating Expenses"). Tenant's pro rata share shall be [Percentage]% of the total Operating Expenses.

CAM Charges: CAM charges shall include, but not be limited to, expenses for maintenance, repair, and replacement of common areas, landscaping, snow removal, security, and management fees.

Expense Reconciliation: Landlord shall provide Tenant with an annual statement of Operating Expenses within [Number] days after the end of each calendar year. Tenant shall pay any additional amount due within [Number] days of receipt of the statement. If Tenant has overpaid, Landlord shall credit the overpayment to Tenant's next rent payment or refund the overpayment within [Number] days.

Audit Rights: Tenant shall have the right to audit Landlord's records relating to Operating Expenses, provided that Tenant gives Landlord at least [Number] days' written notice of its intent to audit. The audit shall be conducted at Tenant's expense.

Build-Out and Alterations

Delivery Condition:

Option A: The Premises are being leased in "as-is" condition.

Option B: Landlord shall complete the following improvements to the Premises prior to Tenant's occupancy: [Detailed Description of Landlord's Build-Out Obligations].

Tenant Improvements:

Option A: Tenant shall be responsible for all tenant improvements.

Option B: Landlord shall contribute up to [Dollar Amount] towards tenant improvements. Tenant shall obtain Landlord's prior written approval of all plans and specifications for any tenant improvements.

Alterations: Tenant shall not make any alterations to the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld.

Restoration: Upon the expiration or termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing by Landlord.

Move-In Inspection: Prior to taking possession of the Premises, Tenant and Landlord shall conduct a joint inspection of the Premises and complete a written inspection report, which shall be attached to this Lease as Exhibit B.

Insurance and Indemnification

Liability Insurance: Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, naming Landlord as an additional insured.

Property Insurance: Tenant shall maintain property insurance covering Tenant's personal property and any tenant improvements. Landlord shall maintain property insurance covering the building.

Business Interruption Insurance: Tenant shall maintain business interruption insurance.

Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant hereby waive all rights of recovery against each other for any loss or damage covered by their respective insurance policies.

Indemnification: Tenant shall indemnify and hold harmless Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of Tenant's use of the Premises, except to the extent caused by Landlord's negligence or willful misconduct.

Certificates of Insurance: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage prior to the commencement of the Lease term and upon each renewal of the policies.

Assignment and Subletting

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

Option C: Tenant may assign this Lease or sublet the Premises with written notice to Landlord, but without requiring Landlord's consent, provided the assignee or sublessee assumes all of Tenant's obligations under this Lease.

Any assignment or subletting shall not relieve Tenant of its obligations under this Lease.

Compliance with Laws

Tenant shall comply with all applicable laws, ordinances, rules, and regulations in its use of the Premises, including but not limited to zoning laws, building codes, and the Americans with Disabilities Act (ADA).

ADA Compliance: Tenant is responsible for ensuring that the Premises are in compliance with the ADA to the extent required by its specific use.

Landlord makes no representations or warranties regarding the suitability of the Premises for Tenant's intended use under applicable laws and regulations.

Default and Remedies

Events of Default: The following shall constitute events of default by Tenant: (a) failure to pay rent when due; (b) failure to comply with any other material term or condition of this Lease; (c) abandonment of the Premises; (d) insolvency or bankruptcy.

Cure Period: If Tenant defaults in the payment of rent, Tenant shall have [Number] days after written notice from Landlord to cure the default. If Tenant defaults in any other material term or condition of this Lease, Tenant shall have [Number] days after written notice from Landlord to cure the default, provided that if the default is not reasonably curable within [Number] days, Tenant shall have such additional time as is reasonably necessary to cure the default, provided Tenant commences cure within [Number] days and diligently pursues it to completion.

Landlord's Remedies: Upon the occurrence of an event of default by Tenant, Landlord shall have the following remedies, in addition to any other remedies available at law or in equity: (a) terminate this Lease; (b) re-enter the Premises and relet the same; (c) accelerate all rent due under this Lease; (d) pursue any other remedy available under North Carolina law, including but not limited to summary ejectment pursuant to Chapter 42 of the North Carolina General Statutes.

Tenant's Remedies: Upon the occurrence of an event of default by Landlord, Tenant shall have the right to pursue any remedy available at law or in equity, including but not limited to injunctive relief and damages.

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 following addresses:

Landlord: [Landlord's Name and Address]

Tenant: [Tenant's Name and Address]

Either party may change its address for notices by giving written notice to the other party.

Destruction, Casualty, or Condemnation

Partial Destruction: If the Premises are partially damaged by fire or other casualty, Landlord shall repair the damage as soon as reasonably practicable, and the rent shall abate proportionately to the extent the Premises are unusable.

Total Destruction: If the Premises are totally destroyed by fire or other casualty, this Lease shall terminate automatically.

Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate automatically. Any condemnation award shall be allocated between Landlord and Tenant as their respective interests may appear.

Signage, Parking, and Common Areas

Signage: Tenant shall have the right to install signage on the Premises in accordance with Landlord's signage guidelines and applicable local ordinances. All signage must be approved in writing by Landlord prior to installation.

Parking: Tenant shall have the right to use [Number] parking spaces in the common parking area.

Common Areas: Tenant shall have the right to use the common areas of the building, subject to Landlord's rules and regulations.

Environmental Compliance

Tenant shall comply with all applicable environmental laws and regulations in its use of the Premises.

Tenant shall not use, store, or dispose of any hazardous materials on the Premises without Landlord's prior written consent.

Tenant shall indemnify and hold harmless Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of Tenant's use, storage, or disposal of hazardous materials on the Premises.

Lead-Based Paint Disclosure: [Include lead-based paint disclosure if the property was built before 1978.]

Estoppel Certificate

Each party shall, upon the written request of the other party, execute and deliver an estoppel certificate confirming the terms of this Lease and stating whether or not the Lease is in full force and effect, and whether or not there are any defaults.

Mechanic's Liens

Tenant shall not permit any mechanic's liens to be filed against the Premises as a result of Tenant's work or materials. If any such lien is filed, Tenant shall promptly discharge the lien.

Subordination, Non-Disturbance, and Attornment

This Lease shall be subordinate to any existing or future mortgages or deeds of trust encumbering the Premises, provided that Landlord obtains a non-disturbance agreement from the mortgagee or beneficiary protecting Tenant's right to possession of the Premises.

Tenant agrees to attorn to any successor owner of the Premises.

Limitation of Liability

Landlord shall not be liable to Tenant for any damages or losses arising out of Landlord's breach of this Lease, except to the extent caused by Landlord's gross negligence or willful misconduct.

Personal Guarantee

Option A: This Lease shall be personally guaranteed by [Guarantor's Full Legal Name], residing at [Guarantor's Address]. The Guarantor hereby guarantees the full and prompt performance of all of Tenant's obligations under this Lease.

Option B: No personal guarantee is required under this Lease.

Option Clauses

Purchase Option: Tenant shall have the option to purchase the Premises at any time during the term of this Lease for a purchase price of [Dollar Amount].

Right of First Refusal: If Landlord receives an offer to purchase the Premises, Landlord shall give Tenant the right of first refusal to purchase the Premises on the same terms and conditions as the offer.

Expansion Option: Tenant shall have the option to lease additional space in the building, if and when such space becomes available.

Accessibility

Landlord and Tenant shall comply with all applicable accessibility requirements, including the Americans with Disabilities Act (ADA).

Insurance Policies

Tenant shall maintain fire, hazard, and liability insurance as required herein. The policies should comply with North Carolina law for named insureds and waivers.

Landlord Entry

Landlord shall have the right to enter the Premises for reasonable purposes, provided that Landlord gives Tenant at least [Number] hours' notice, except in the case of an emergency.

Governing Law

This Lease shall be governed by and construed in accordance with the laws of the State of North Carolina.

Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City], North Carolina.

Option B: Any dispute arising out of or relating to this Lease shall be resolved through binding arbitration in [City], North Carolina, in accordance with the rules of the American Arbitration Association.

Option C: Any dispute arising out of or relating to this Lease shall be resolved in the courts of [County] County, North Carolina.

Brokers/Commissions

[State names of brokers and amount of commission].

Confidentiality

The terms of this Lease shall be kept confidential by both Landlord and Tenant.

Entire Agreement

This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter hereof.

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 and Waiver

This Lease may be amended only by a writing signed by both parties. No waiver of any provision of this Lease shall be effective unless in writing and signed by the waiving party.

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. Electronic signatures shall have the same force and effect as original signatures.

North Carolina Specific Provisions

Statute of Frauds: This Lease, being for a term longer than three years, is executed under seal by both parties.

NCGS Chapter 42: This Lease is subject to the applicable provisions of Chapter 42 of the North Carolina General Statutes (Landlord and Tenant).

[Insert any specific North Carolina statutory notice requirements, if applicable, such as those related to summary ejectment or lease termination].

Triple-Net (NNN) Lease Disclosures: [Include any specific NNN lease disclosures recommended or required in North Carolina].

[Include any relevant county or municipal-specific disclosure or licensing obligations applicable to the property or the tenant's intended use].

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

____________________________

[Landlord's Full Legal Name] (Landlord)

____________________________

[Tenant's Full Legal Name] (Tenant)

Guarantor (if applicable):

____________________________

[Guarantor's Full Legal Name]