Oregon commercial lease agreement template

Oregon Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and effective as of [Date], by and between [Landlord Name], a [Entity Type] organized and existing under the laws of Oregon, with a mailing address of [Landlord Address] ("Landlord"), and [Tenant Name], a [Entity Type] organized and existing under the laws of Oregon, with a mailing address of [Tenant Address] ("Tenant").

• Landlord's Phone Number: [Landlord Phone Number]
• Landlord's Email: [Landlord Email]
• Landlord's Agent/Broker: [Agent/Broker Name]
• Agent/Broker Contact Info: [Agent/Broker Contact Info]
• Tenant's Phone Number: [Tenant Phone Number]
• Tenant's Email: [Tenant Email]
• Tenant's Agent/Broker: [Agent/Broker Name]
• Agent/Broker Contact Info: [Agent/Broker Contact Info]

1. Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the following described premises (the "Premises"):

• Full Address: [Property Address], including Suite/Unit Number: [Suite/Unit Number]
• Legal Description: [Legal Description]
• Square Footage: [Square Footage] square feet
• Permitted Use/Zoning: [Permitted Use/Zoning]
• Common Areas: Common areas are defined as [Definition of Common Areas].

2. Use of Premises

The Premises shall be used and occupied solely for the following purposes:

• Permitted Business Activities: [Description of Permitted Business Activities]
• Prohibited Uses: [List of Prohibited Uses]
• Signage Limitations: [Signage Limitations]
• Delivery Hours: [Delivery Hours]
• City/Zoning Use Restrictions: [City/Zoning Use Restrictions]

3. Lease Term

The term of this Lease shall commence on [Commencement Date] and shall expire on [Expiration Date], unless sooner terminated as provided herein.

• Renewal/Extension Options:
  • Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] each, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the then-current term.
  • Option B: There are no renewal options.
• Early Occupancy: Tenant shall be allowed early occupancy commencing on [Early Occupancy Date] subject to [Conditions of Early Occupancy].
• Holding Over: If Tenant remains in possession of the Premises after the expiration of the term, such holdover shall be deemed a month-to-month tenancy, terminable by either party upon [Number] days' written notice. Rent during any holdover period shall be [Percentage]% of the then-current monthly rent.
• Automatic Renewal:
  • Option A: This lease shall automatically renew for successive terms of [Duration], unless either party gives written notice of termination at least [Number] days prior to the end of the then-current term.
  • Option B: This lease does not automatically renew.

4. Rent

Tenant shall pay to Landlord as rent for the Premises the sum of [Dollar Amount] per month (the "Base Rent").

• Escalation Clauses:
  • Option A: The Base Rent shall increase by [Percentage]% on each [Date].
  • Option B: The Base Rent shall be adjusted annually based on the Consumer Price Index (CPI) for [City, State]. The adjustment will be effective [Date] each year.
  • Option C: There are no rent escalation clauses.
• Rent Adjustment Dates: [Date(s) of Rent Adjustment]
• Advance Rent/Deposits: Tenant shall pay [Dollar Amount] as advance rent/deposit, which shall be applied to the rent due for the month of [Month].
• Payment Schedule: Rent shall be payable monthly in advance on the [Day] day of each month.
• Rent Due Dates: Rent is due on the [Day] day of each month.
• Acceptable Payment Methods: [Acceptable Payment Methods]
• Late Fees: A late fee of [Dollar Amount] shall be charged for any rent payment received more than [Number] days after the due date.
• Returned Check Charges: A charge of [Dollar Amount] will be assessed for any returned check.

5. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount] (the "Security Deposit").

• Allowable Purpose: The Security Deposit may be used to cover any damages to the Premises caused by Tenant, unpaid rent, or other amounts due under this Lease.
• Interest Requirements: [Details on Interest Requirements, if any, as per Oregon Law] (Oregon law does not generally require interest on commercial security deposits).
• Return/Forfeiture Procedures: Within [Number] days after the termination of this Lease and Tenant's surrender of the Premises, Landlord shall return the Security Deposit, less any deductions for damages or unpaid rent, along with a written itemized statement of such deductions.
• Deadline for Accounting and Refund: [Number] days.

6. Tenant Improvement Allowance

• Option A: Landlord will provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.
  • Build-Out Standards: [Build-Out Standards]
  • Responsibilities and Costs: [Responsibilities and Costs for Initial Buildout]
  • Design Approvals: [Design Approval Process]
  • Timelines: [Timelines for Completion]
  • Completion Guarantees: [Completion Guarantees]
  • Landlord Funding Mechanisms: [Landlord Funding Mechanisms]
• Option B: There is no tenant improvement allowance.

7. Maintenance and Repair

• Option A: Full-Service Gross Lease: Landlord shall be responsible for all maintenance and repair of the Premises, including structural and non-structural repairs, HVAC, plumbing, roof, parking lots, and landscaping.
• Option B: Modified Gross Lease: Landlord shall be responsible for [Landlord Responsibilities], and Tenant shall be responsible for [Tenant Responsibilities].
• Option C: Triple Net (NNN) Lease: Tenant shall be responsible for all maintenance and repair of the Premises, including structural and non-structural repairs, HVAC, plumbing, roof, parking lots, and landscaping. Tenant shall also be responsible for operating expenses, utilities, property taxes, and insurance, as outlined below.

Utility Hook-Ups: Landlord is responsible for initial utility hookups to the premises. Ongoing utility usage costs are the responsibility of [Landlord/Tenant].

8. Taxes and Insurance

• Option A: Landlord Pays Taxes and Insurance: Landlord shall pay all property taxes and insurance on the Premises.
• Option B: Tenant Pays Taxes and Insurance (NNN): Tenant shall pay all property taxes, special assessments, and insurance (property, liability, earthquake, business interruption) on the Premises.
  • Notice and Approval Procedures: [Notice and Approval Procedures]
  • Subrogation: [Subrogation Details]
  • Waiver of Subrogation: [Waiver of Subrogation Details]

9. Common Area Maintenance (CAM) Charges

• Option A: Included in Rent: CAM charges are included in the Base Rent.
• Option B: Additional Charge: Tenant shall pay its pro rata share of Common Area Maintenance (CAM) charges.
  • Method of Calculation: [Method of Calculation]
  • CAM Budgets and Reconciliations: [CAM Budgets and Reconciliations]
  • Caps or Increases: [Caps or Increases]
  • Audit Rights: [Audit Rights]
  • Communication of Expenses: [Communication of Estimated vs. Actual Expenses]

10. Alterations and Improvements

Tenant shall not make any alterations or improvements to the Premises without the prior written consent of Landlord.

• Process for Requesting and Approving Changes: [Process for Requesting and Approving Changes]
• Restoration Requirements: [Restoration Requirements Upon Lease End]
• Ownership of Improvements: [Ownership of Improvements]

11. Subletting and Assignment

• Option A: Tenant may not sublet or assign this Lease without Landlord's written consent.
  • Landlord Consent Standard: Consent shall not be unreasonably withheld.
• Option B: Tenant may sublet or assign this Lease with Landlord's consent, which may be granted or withheld in Landlord's sole discretion.
• Recapture Rights: [Recapture Rights Details]

12. Entry and Inspection

Landlord shall have the right to enter the Premises at reasonable times to inspect the same, provided that Landlord gives Tenant at least [Number] hours' notice, except in cases of emergency.

• Allowable Hours: [Allowable Hours for Entry]
• Reasonableness Standards: [Reasonableness Standards for Entry]
• Emergency Access: [Emergency Access Provisions]

13. Default and Remedies

• Events of Default: The following shall constitute events of default by Tenant:
  • Non-payment of Rent
  • Abandonment of the Premises
  • Unauthorized Use of the Premises
  • Failure to Maintain Insurance
• Notice and Cure Periods: Landlord shall give Tenant written notice of any default, and Tenant shall have [Number] days to cure such default.
• Remedies: Upon the occurrence of an event of default, Landlord shall have the right to:
  • Terminate this Lease
  • Recover damages
  • Lockout Tenant
  • Re-enter the Premises
  • Accelerate Rent
• Legal Fees: The prevailing party in any action or proceeding to enforce this Lease shall be entitled to recover its reasonable attorneys' fees and costs.
• Waiver/Non-Waiver of Rights: [Waiver/Non-Waiver of Rights Details]

14. Renewal or Extension

• Notices Required: To renew or extend this lease, Tenant must provide written notice to Landlord at least [Number] days prior to the expiration date of the current lease term.
• Redetermination of Rent: Rent for any renewal term shall be determined as follows: [Rent Determination Method]
• Renewal Rent Increases: [Details Regarding Renewal Rent Increases]
• Holdover Status: If Tenant remains in possession of the premises after the expiration of the lease term without executing a renewal, the tenancy will convert to a [Month-to-Month/Other] basis.
• Holdover Rent Rates and Liabilities: Rent during any holdover period shall be [Percentage]% of the then-current monthly rent, and Tenant will be liable for any damages incurred by Landlord due to the holdover.

15. Use and Compliance

Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including but not limited to accessibility codes, environmental standards, and health/safety codes.

• Consequences of Illegal/Unauthorized Use: [Consequences of Illegal/Unauthorized Use]

16. Environmental Matters

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

• Responsibility for Hazardous Materials: [Responsibility for Hazardous Materials]
• Existing Contamination: [Details on Existing Contamination, if any]
• Abatement/Cleanup: [Abatement/Cleanup Responsibilities]
• Indemnity: [Environmental Indemnity Provisions]
• Disclosure: Landlord discloses the following known environmental conditions on the property: [Description of Known Environmental Conditions].

17. Insurance Requirements

Tenant shall maintain the following insurance coverage:

• Types of Insurance: [Types of Insurance Required]
• Minimum Limits: [Minimum Limits of Coverage]
• Certificate Provision: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage.
• Additional Insured Endorsements: [Additional Insured Endorsements]
• Notice of Cancellation: Tenant shall provide Landlord with [Number] days' notice of cancellation of any insurance policy.
• Indemnification/Liability Waivers: [Indemnification/Liability Waivers]

18. Early Termination

• Option A: Landlord and Tenant agree to early termination under these conditions: [Early Termination Conditions]
• Option B: There are no early termination options for either party.

Subordination to Lenders: This Lease shall be subordinate to any mortgages or deeds of trust that may hereafter be placed upon the Premises.

Eminent Domain: If the Premises are taken by eminent domain, this Lease shall terminate.

Destruction or Casualty: If the Premises are damaged by fire or other casualty, Landlord shall have the option to restore the Premises. If Landlord elects not to restore the Premises, this Lease shall terminate.

• Insurance Proceeds: [Details Regarding Insurance Proceeds]
• Rent Abatement: [Details Regarding Rent Abatement]

19. Indemnification

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

• Limits of Liability: [Limits of Liability]
• Application to Both Parties: [Indemnification Applicability to Both Parties]

20. Signage, Parking, Storage, and Utilities

• Signage: [Signage Details]
• Parking: [Parking Details]
• Storage: [Storage Details]
• Utility Metering: Utilities are [Separately/Shared] metered. Tenant shall be responsible for paying for their share of utilities.
• Exterior Maintenance: [Exterior Maintenance Responsibilities]

21. ADA and Oregon Accessibility Law Compliance

• ADA Compliance: [ADA Compliance Responsibilities]
• Oregon Accessibility Law Compliance: [Oregon Accessibility Law Compliance Responsibilities]
• Allocation of Liability: [Allocation of Liability]

22. Marijuana/Cannabis Business Use Restrictions (If Applicable)

• [Specific Restrictions and Requirements for Cannabis Businesses Under Oregon Law] (Include relevant details if the premises will be used for cannabis-related activities).
• Local Option Taxation: [Details of Local Option Taxation]

23. Notices

All notices required or permitted 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 email (with confirmation of receipt) to the addresses set forth above.

24. Limitations of Liability and Waivers of Subrogation

• Limitations of Liability: [Limitations of Liability Details]
• Waivers of Subrogation: [Waivers of Subrogation Details]

25. Disclosures

• Environmental: Refer to Section 16.
• Asbestos: [Asbestos Disclosure, if applicable]
• Lead-Based Paint: [Lead-Based Paint Disclosure, if applicable]
• Seismic Risk Warning: [Seismic Risk Warning, if applicable - Oregon specific requirement]

26. Attorney Fees and Legal Costs

In the event of any legal action between Landlord and Tenant, the prevailing party shall be entitled to recover its reasonable attorney fees and costs, provided such provision is reciprocal under Oregon law.

27. Dispute Resolution

• Pre-Litigation Mediation: Prior to initiating any legal action, the parties agree to participate in mediation.
• Choice of Law: This Lease shall be governed by and construed in accordance with the laws of the State of Oregon.
• Venue: Any legal action shall be brought in [County Name] County, Oregon.
• Jury Trial Waiver: [Jury Trial Waiver Provisions, if any]

28. General Provisions

• Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
• Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Merger/Integration: This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
• Waivers: No waiver of any provision of this Lease shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
• Amendment: This Lease may be amended only by a writing signed by both parties.
• Force Majeure: Neither party shall be liable for any failure to perform its obligations under this Lease due to causes beyond its reasonable control.
• Execution in Counterparts/Electronically: This Lease may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Electronic signatures shall be considered valid and binding.

29. Optional Clauses

• Personal Guarantee: [Personal Guarantee Details - Including Guarantor Name]
• Estoppel Certificate: [Estoppel Certificate Requirements]
• Relocation/Expansion Rights: [Relocation/Expansion Rights Details]
• Right of First Refusal/Offer: [Right of First Refusal/Offer Details]
• Recording (Memorandum of Lease): [Details Regarding Recording a Memorandum of Lease]
• Brokers' Commissions and Indemnity: [Brokers’ Commissions and Indemnity Details]

[Optional Section] Oregon-Specific Statutory Text or Required Addenda:

[Here, include specific statutory text required by Oregon law for certain situations (e.g., landlord access rights in residential-adjacent commercial spaces) or required addenda such as disclosure forms.]

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

[Landlord Name]

By: [Landlord Signature]

Name: [Printed Name]

Title: [Title]

[Tenant Name]

By: [Tenant Signature]

Name: [Printed Name]

Title: [Title]