North Carolina warehouse lease agreement template

North Carolina Warehouse Lease Agreement

This North Carolina Warehouse Lease Agreement (the "Agreement") is made and entered into as of [Execution Date], by and between [Landlord Full Legal Name/Business Entity], whose address is [Landlord Address] ("Landlord"), and [Tenant Full Legal Name/Business Entity], whose address is [Tenant Address] ("Tenant").

Landlord and Tenant agree as follows:

Premises

The Landlord leases to the Tenant and the Tenant leases from the Landlord, subject to the terms and conditions of this Agreement, the warehouse space located at [Legal Property Address], further described as:

• Warehouse location description: [Warehouse Location Description]
• Parcel Number(s): [Parcel Number(s)]
• Total Square Footage: [Total Square Footage]
• Number of Bays/Loading Docks: [Number] [Type]
• Ceiling Height: [Ceiling Height]
• Floor Load Capacity: [Floor Load Capacity]
• Insulated/Climate-Controlled Areas: [Yes/No] [If yes, describe area]
• Designated Office Spaces: [Yes/No] [If yes, describe area]
• Restroom Facilities: [Number]
• Unique Features: [List any unique features, e.g., racking systems, mezzanines, specialized equipment]

Use

The Premises shall be used solely for lawful warehouse, distribution, and/or light industrial purposes in compliance with all North Carolina commercial zoning regulations and local ordinances.

The Tenant shall comply with all relevant state and local codes, including fire, environmental, and occupational laws.

No unauthorized activities, such as retail, residential, or hazardous waste storage, are permitted.

Tenant is responsible for obtaining and maintaining all necessary government approvals for their specific operations, including permits for the storage of regulated goods.

Tenant must comply with all use restrictions arising from state or municipal permits.

Term

• Option A: The term of this Agreement shall commence on [Start Date] and shall expire on [End Date].
• Option B: The term shall be for a period of [Number] years, commencing on [Start Date].
• Renewal Options: [Specify renewal option(s), including notice periods and conditions]
• Conditions of Early Termination: [Specify conditions for early termination, complying with NC General Statutes §42-14]

Rent

• Base Rent:
  • Option A: The base rent shall be [Dollar Amount] per month.
  • Option B: The base rent shall be [Dollar Amount] per square foot per year, payable in monthly installments of [Dollar Amount].
• Escalation Formula: [Specify escalation formula, e.g., CPI or fixed increases]
• Payment Dates: Rent shall be payable monthly in advance on the [Day] day of each month.
• Late Fees: A late fee of [Dollar Amount] or [Percentage] will be charged for payments received more than [Number] days after the due date. (Note: Late fees must comply with North Carolina law)
• Security Deposit: The security deposit shall be [Dollar Amount]. Landlord’s handling and return of the security deposit is governed by NC Gen. Stat. § 42-50 et seq.

Taxes

• Option A: Landlord shall be responsible for real estate taxes. Tenant shall be responsible for personal property taxes on Tenant's property.
• Option B: Tenant shall reimburse Landlord for any increase in real estate taxes directly attributable to Tenant’s use of the Premises.

Utilities

• Tenant shall be responsible for the following utilities: [List utilities, e.g., electric, water, sewer, gas, internet, waste removal].
• Method of Payment: [Specify how utilities are metered/submetered or allocated]

Common Area Maintenance (CAM)

• Tenant's proportionate share of CAM charges is [Percentage].
• Included in CAM: [List items included, e.g., parking areas, driveways, landscaping].
• Additional Charges: [Specify Landlord’s right to assess additional charges, e.g., snow removal, hurricane/flood repairs].

Insurance

• Tenant shall maintain:
  • Commercial General Liability Insurance with a minimum limit of [Dollar Amount] per occurrence.
  • Property Insurance covering Tenant's personal property and stored goods.
• Landlord shall maintain property insurance on the building.
• Tenant shall name Landlord as an additional insured on its Commercial General Liability policy.
• Waiver of Subrogation: [Include waiver of subrogation rights, as per North Carolina best practice].

Repair and Maintenance

• Landlord's Responsibilities: [Specify responsibilities, e.g., roof, structure, exterior walls, HVAC, essential systems].
• Tenant's Responsibilities: [Specify responsibilities, e.g., interior, loading docks, tenant-installed equipment].
• Reporting Property Damage: [Detail obligations for timely reporting of property damage].
• Restoration Costs at Lease End: [Allocate restoration costs at lease end].

Fire Suppression and Alarm Systems

Regular maintenance of fire suppression (sprinkler) and alarm systems in line with North Carolina building/fire code is required.

Compliance with all state/local fire marshal requirements.

Emergency/evacuation procedures suitable for warehousing operations must be in place.

Tenant Improvements

Tenant improvements are subject to Landlord's written approval and permitting.

Permitted warehouse modifications: [Specify permitted modifications, e.g., racking, machinery anchoring].

Ownership/Handling at Lease End: [Clarify ownership/handling of improvements at lease end].

Delivery Condition

• Delivery Condition of Premises: [Describe delivery condition].
• Walkthrough/Acceptance Procedures: [Describe walkthrough/acceptance procedures].
• Move-in/Move-out Standards: [Specify standards, including broom clean, removal of debris, and restoration of leased areas].

Pest Control and Environmental Issues

Procedures and responsibilities for pest control, environmental spills, mold, or infestation issues.

Compliance with North Carolina Department of Environmental Quality and federal EPA standards for hazardous materials storage or disposal.

Sublease and Assignment

Sublease and assignment require prior Landlord consent and are subject to conditions per North Carolina law.

Landlord Access

Landlord access for inspection, repairs, and emergencies is permitted in compliance with North Carolina lease notice requirements.

Default

Mechanisms for handling Tenant default, specifying notice, cure period, remedies, right to terminate, and property lien/abandonment rights under North Carolina law.

Indemnification

Tenant shall indemnify Landlord for losses from Tenant’s activities, to the extent allowed by North Carolina law.

Parking and Signage

Rules for parking, truck access, fencing, on-site security, and signage rights.

Tenant’s right to use loading docks and hours of operation.

Changes in Law

Allocation of costs for improvements or alterations required by changes in North Carolina or local codes.

Compliance with Laws

Compliance with all North Carolina employment, labor, and OSHA workplace safety requirements relevant to warehouse employees.

Dispute Resolution

• Dispute resolution method: Negotiation, North Carolina mediation, and arbitration or litigation in North Carolina courts.
• Governing law: North Carolina law.
• Exclusive jurisdiction: [Specify appropriate county in North Carolina].

Casualty and Condemnation

Property casualty and condemnation clauses in line with North Carolina eminent domain statutes.

Required North Carolina Legal Disclosures

• Broker Representation: [Disclose broker representation, if any].
• Lead-Based Paint Disclosure: [Include lead-based paint disclosure for pre-1978 structures, if applicable].
• Flood Hazard: [Disclose presence/absence of flood hazard, per NC flood zone records].
• Acknowledgment of Receipt: [Include acknowledgment of receipt where applicable].

Compliance with Laws and Ethics

Antitrust, anti-money laundering, and compliance with North Carolina commercial real estate ethics rules.

Certification that neither party will use the premises for illegal or unlicensed activities.

Warehouse-Specific Terms

[Specify any industry-specific warehousing terms, such as cross-docking rights, pallet storage limits, access to rail/truck loading, heavy equipment use approvals, and hours-of-operation restrictions where local restrictions exist].

Abandoned Property

Treatment of Tenant’s abandoned property in compliance with North Carolina law (NC Gen. Stat. § 42-25.9).

Security Deposit Return

Procedures for security deposit return, property forfeiture, and clean-out fees.

Energy/Environmental Conservation

Requirements for compliance with energy/environmental conservation programs if required by state or local code or Landlord/Tenant sustainability policies.

Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions and agreements. This Agreement may only be amended in writing signed by both parties.

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

____________________________
[Landlord Full Legal Name/Business Entity]

By: ____________________________
[Landlord Authorized Signature]

Title: [Landlord Title]

____________________________
[Tenant Full Legal Name/Business Entity]

By: ____________________________
[Tenant Authorized Signature]

Title: [Tenant Title]