North Dakota warehouse lease agreement template

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How North Dakota warehouse lease agreement Differ from Other States

  1. North Dakota lease termination laws differ, requiring at least one month’s notice for most lease agreements.

  2. Security deposit handling is governed by North Dakota statutes, mandating the return within 30 days after lease end.

  3. The state has unique provisions regarding property maintenance responsibilities between landlords and tenants.

Frequently Asked Questions (FAQ)

  • Q: Is a written warehouse lease agreement required in North Dakota?

    A: No, but it is highly recommended to have one in writing to avoid potential disputes and clarify all terms.

  • Q: How soon must a landlord return a warehouse security deposit in North Dakota?

    A: A landlord must return the security deposit within 30 days after the lease ends, per state regulations.

  • Q: Are warehouse tenants liable for maintenance in North Dakota?

    A: Liability for maintenance depends on the lease terms, but North Dakota law may assign some duties to the owner.

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North Dakota Warehouse Lease Agreement

This North Dakota Warehouse Lease Agreement ("Agreement") is made and entered into as of this [Date] by and between:

[Landlord's Full Legal Name], a [State of Organization] [Entity Type, e.g., Corporation, LLC], with its principal place of business at [Landlord's Address] ("Landlord"),

and

[Tenant's Full Legal Name], a [State of Organization] [Entity Type, e.g., Corporation, LLC], with its principal place of business at [Tenant's Address] ("Tenant").

Premises:

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the warehouse premises located at [Street Address], [City], [County], North Dakota, with the following legal description: [Legal Description per North Dakota Property Law] ("Premises"). The Premises consist of approximately [Square Footage] square feet, and if applicable, [Cubic Storage Space] cubic feet. The building configuration is [Building Configuration Description], including [Number] loading docks and [Number and Type] overhead doors. The Premises include [Forklift Access Points], a ceiling height of [Ceiling Height], column spacing of [Column Spacing], and a [Sprinkler/Fire Suppression System Description] sprinkler/fire suppression system.

Option B: The Premises also include [Office/Ancillary Space Description] of office or ancillary space within the warehouse, [Parking Area Description] parking areas, and [Exterior Features Description] for tractor-trailer movement or laydown yards.

Permitted Use:

Option A: The Premises shall be used solely for the purpose of [Permitted Use, e.g., warehousing, storage, distribution, light manufacturing] and activities directly related thereto. The permitted use is consistent with the applicable zoning ordinance [Zoning Ordinance Reference, if applicable] and any relevant North Dakota local land use permits.

Option B: Tenant shall not use the Premises for residential purposes, nor shall Tenant store any hazardous, perishable, or prohibited items, except as expressly permitted in writing by Landlord and in compliance with all applicable North Dakota state and local regulations. Any permitted storage of hazardous materials must adhere to NDCC § 23.1-24.

Compliance with Laws:

Option A: Tenant shall comply with all applicable North Dakota commercial building codes, local zoning ordinances, environmental laws, fire codes, sanitation requirements, public health requirements, and all applicable licensing or permitting requirements for its intended business activities.

Option B: Tenant shall be responsible for obtaining and maintaining all necessary permits and licenses required for its operations within the Premises, and shall provide proof of such compliance to Landlord upon request.

Lease Term:

Option A: The initial term of this Lease shall be [Number] years, commencing on [Start Date] ("Commencement Date") and expiring on [End Date] ("Expiration Date").

Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the Expiration Date.

Option C: Either party may terminate this lease due to regulatory non-compliance or condemnation, with [number] days written notice.

Rent and Payments:

Option A: The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the [Day] of each month, commencing on the Commencement Date.

Option B: The base rent shall be subject to an annual escalation of [Percentage]% or an increase based on the Consumer Price Index (CPI) as published by the U.S. Department of Labor, with the initial adjustment occurring on [Date].

Option C: Tenant shall also be responsible for its pro rata share of common area maintenance (CAM) costs, estimated to be [Dollar Amount] per month, subject to annual reconciliation.

Option D: Tenant shall be separately responsible for all utilities, including water, electricity, gas, sewer, internet, and solid waste disposal. Landlord shall provide separate metering for each utility to Tenant.

Option E: A security deposit of [Dollar Amount] is required, which shall be returned to Tenant within [Number] days of the Expiration Date, less any deductions for damages or unpaid rent.

Option F: Late fees of [Dollar Amount] will be assessed for any rent payments received more than [Number] days after the due date, with returned check fees of [Dollar Amount].

Option G: Treatment of property tax pass-throughs and required notifications will be in accordance with NDCC Chapter 47.

Maintenance and Repairs:

Option A: Landlord shall be responsible for maintaining the roof, walls, foundation, structural floors, slabs, and loading docks in good repair and condition.

Option B: Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, including but not limited to the HVAC, electrical, and plumbing systems serving the Premises.

Option C: Landlord shall be responsible for exterior building maintenance, pest control, landscaping, and snow removal, critical in ND winters.

Option D: Tenant shall promptly notify Landlord of any needed repairs. Landlord shall have the right to enter the Premises to perform necessary repairs, with reasonable notice to Tenant, unless it is an emergency. If Tenant fails to perform required repairs, Landlord may do so and charge Tenant for the cost.

Tenant Improvements:

Option A: Any tenant improvements shall require Landlord's prior written approval. Tenant shall obtain all necessary permits under local ordinances and comply with North Dakota contractor licensing requirements.

Option B: Tenant shall provide lien waivers from all contractors performing work on the Premises.

Option C: At the Expiration Date, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, or address any code compliance issues as required by Landlord.

Operating Restrictions:

Option A: Tenant shall comply with all applicable noise, light, and truck traffic regulations.

Option B: Tenant shall comply with the following hours of operation: [Hours of Operation].

Option C: The following security arrangements are in place: [Alarm Systems, Access Control, Video Surveillance Description].

Insurance:

Option A: Tenant shall maintain the following insurance coverage: property insurance, commercial general liability insurance, and business interruption insurance, with minimum coverage amounts of [Dollar Amount].

Option B: If applicable, Tenant shall also maintain motor carrier or warehouse legal liability coverage.

Option C: Landlord shall be named as an additional insured on Tenant's insurance policies, with North Dakota-specified endorsements. Tenant must carry flood or windstorm insurance if the property is in a risk-prone area.

Environmental Compliance:

Option A: Tenant shall comply with all applicable North Dakota oil and hazardous substances release laws (NDCC § 23.1-24).

Option B: Tenant shall immediately notify Landlord of any spills or releases of hazardous substances on the Premises and shall be responsible for all costs associated with the cleanup and remediation of such spills or releases to the extent caused by Tenant's operations. Landlord is not responsible for pre-existing environmental conditions.

Indemnification:

Option A: Landlord shall not be liable for any personal injury, property damage, or third-party claims arising from Tenant's use of the Premises, except to the extent caused by Landlord's negligence or willful misconduct.

Option B: Tenant shall indemnify and hold Landlord harmless from and against any and all claims, losses, damages, liabilities, and expenses (including attorneys' fees) arising from Tenant's use of the Premises or Tenant's breach of this Agreement.

Subletting and Assignment:

Option A: Tenant shall not sublet the Premises or assign this Lease without Landlord's prior written consent, which consent shall not be unreasonably withheld except as permitted by North Dakota law.

Option B: Tenant shall notify Landlord of any changes in tenant ownership or control.

Warehouse Operations:

Option A: Tenant shall maintain accurate records of all goods stored on the Premises and shall comply with all applicable North Dakota warehouse licensing or registration requirements if storing goods of third parties.

Option B: Tenant's warehouse receipt practices and bailment obligations shall comply with North Dakota warehouse and storage facility statutes.

Default and Remedies:

Option A: If Tenant fails to pay rent when due or otherwise breaches this Agreement, Landlord shall have the right to terminate this Lease and pursue all available remedies under North Dakota law, including eviction.

Option B: Tenant shall have a cure period of [Number] days to cure any non-monetary breach of this Agreement.

Option C: Landlord shall have a duty to mitigate its damages in the event of Tenant's breach. Tenant's property will be handled in accordance with NDCC Chapter 41-07 (Warehouseman's liens) following eviction.

Entry and Inspection:

Option A: Landlord shall have the right to enter the Premises for purposes of inspection, maintenance, or repair, with reasonable notice to Tenant, except in cases of emergency. Landlord's entry rights are in accordance with state notice periods.

Option B: Landlord shall also have the right to enter the Premises to comply with regulatory inspections or insurance claims.

Move-In/Move-Out:

Option A: A move-in inspection shall be conducted prior to the Commencement Date to document the condition of the Premises. A move-out inspection shall be conducted after the Expiration Date to assess any damages.

Option B: Tenant shall remove all personal property from the Premises upon the Expiration Date and shall leave the Premises in a clean and broom-swept condition, reasonable wear and tear excepted.

Dispute Resolution:

Option A: Any disputes arising under this Agreement shall be resolved through negotiation and mediation, prior to resorting to litigation.

Option B: Any litigation shall be conducted in the courts of North Dakota, with exclusive jurisdiction and venue in [County] County, North Dakota. This Agreement shall be governed by and construed in accordance with the laws of the State of North Dakota.

Taxes:

Option A: Tenant shall be responsible for all applicable North Dakota state and local taxes, including leasehold taxes and any sales/use tax on storage services, if applicable.

Option B: Compliance with North Dakota tax rules requires reporting and remittance of leasehold taxes, confirmation of sales/use tax on storage services, and any local special assessments or business property reporting.

Force Majeure:

Option A: Neither party shall be liable for any failure to perform its obligations under this Agreement to the extent such failure is caused by a force majeure event, such as fire, flood, earthquake, war, strike, or other event beyond its reasonable control, including North Dakota-specific natural hazards like snow, ice, and wind.

Option B: Business continuity protocols must be followed, and Landlord and Tenant obligations during closure events are as follows: [Insert Specific Obligations].

Signage:

Option A: Tenant shall have the right to install signage on the Premises, subject to Landlord's prior written approval and compliance with local sign ordinances.

Option B: Signage rights and restrictions, advertising, exterior modifications, and compliance with local sign ordinances are as follows: [Insert Specific Requirements].

Notices:

All notices under this Agreement 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 overnight courier to the addresses set forth above. Notices must comply with North Dakota law (NDCC § 1-01-25 and related statutes).

Entire Agreement:

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

Amendment:

This Agreement may be amended only by a writing signed by both parties.

Severability:

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

ADA Compliance:

If the Warehouse is accessible to the public or Tenant's employees, [Landlord/Tenant] is responsible for any upgrades.

Emergency Management:

Tenant must adhere to local emergency management ordinances, evacuation procedures, and the North Dakota fire code, including staff training, if required.

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

____________________________
[Landlord's Signature]

____________________________
[Landlord's Printed Name]

____________________________
[Tenant's Signature]

____________________________
[Tenant's Printed Name]

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