Pennsylvania commercial lease agreement template

Pennsylvania Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into as of this [Date], by and between [Landlord Name], residing at [Landlord Address], hereinafter referred to as "Landlord," and [Tenant Name], a [Tenant Entity Type, e.g., Corporation, LLC], with its principal place of business at [Tenant Address], hereinafter referred to as "Tenant."

Premises:

• The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Street Address], [Unit/Suite Number], [City], [County], Pennsylvania [Zip Code] (the "Premises"), consisting of approximately [Square Footage] square feet, as outlined on the site plan attached as Exhibit A.
• Permitted Use: The Premises shall be used solely for the purpose of [Permitted Use Description], and for no other purpose without the prior written consent of the Landlord.
• Inclusion/Exclusion:
  • Option A: The Premises include the following common areas: [List of Common Areas Included].
  • Option B: The Premises do not include any common areas except for ingress and egress.
  • Parking: The Tenant shall have the right to [Number] parking spaces in the designated parking area.
  • Storage: The Premises [Does/Does Not] include access to storage space.

Lease Term:

• Term Length:
  • Option A: The term of this Lease shall be for a fixed term of [Number] years, commencing on [Start Date] and ending on [End Date].
  • Option B: The term of this Lease shall be month-to-month, commencing on [Start Date], terminable upon [Number] days' written notice by either party.
  • Option C: The term of this Lease shall automatically renew for successive [Number]-year periods unless either party provides written notice of termination at least [Number] days prior to the end of the then-current term.
• Early Termination:
  • Option A: Tenant may terminate this lease prior to the end date with a penalty of [Amount].
  • Option B: Early termination is not permitted.
• Extension Option: Tenant shall have the option to extend the term of this Lease for an additional [Number] years upon written notice to Landlord at least [Number] days prior to the expiration of the then-current term. The rent for the extended term shall be [Specify Rent or Method of Determining Rent].

Rent:

• Base Rent: The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the [Day] day of each month, commencing on [Start Date].
• Payment Method:
  • Option A: Rent shall be paid by check, payable to [Payee Name], and mailed to [Payment Address].
  • Option B: Rent shall be paid electronically via [Electronic Payment Method].
• Late Fees: A late fee of [Dollar Amount or Percentage] shall be charged for any rent payment received more than [Number] days after the due date.
• Returned Check Fee: A fee of [Dollar Amount] shall be charged for any check returned for insufficient funds.
• Rent Escalation:
  • 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 will be calculated by [Calculation Method].
  • Option C: The base rent will increase as follows: [Detailed Schedule of Rent Increases].
• Rent-Free Period: The Tenant shall be entitled to a rent-free period of [Number] months commencing on [Start Date].

Security Deposit:

• Amount: The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount], to be held by the Landlord as security for the Tenant's performance of its obligations under this Lease.
• Holding Requirements: The security deposit shall be held in an escrow account at [Bank Name], in accordance with Pennsylvania law.
• Permitted Deductions: The Landlord may deduct from the security deposit any amounts necessary to cover unpaid rent, damage to the Premises beyond normal wear and tear, or other costs incurred by the Landlord as a result of the Tenant's breach of this Lease.
• Interest:
  • Option A: Landlord shall pay interest on the security deposit as required by Pennsylvania law.
  • Option B: Landlord shall not pay interest on the security deposit.
• Return of Security Deposit: The Landlord shall return the security deposit, less any permitted deductions, to the Tenant within [Number] days after the termination of this Lease and the Tenant's surrender of the Premises. A written itemized list of any deductions shall be provided to the Tenant.

Utilities and Services:

• Responsibility Allocation:
  • Water: [Landlord/Tenant] shall be responsible for the payment of water charges.
  • Electricity: [Landlord/Tenant] shall be responsible for the payment of electricity charges.
  • Gas: [Landlord/Tenant] shall be responsible for the payment of gas charges.
  • Trash Removal: [Landlord/Tenant] shall be responsible for trash removal.
  • Janitorial Services: [Landlord/Tenant] shall be responsible for janitorial services for the Premises.
  • Internet/Telecommunications: [Landlord/Tenant] shall be responsible for internet/telecommunications services.
  • Property Taxes: [Landlord/Tenant] shall be responsible for paying property taxes.
  • Insurance: [Landlord/Tenant] shall be responsible for paying property insurance.
  • CAM (Common Area Maintenance): [Landlord/Tenant] shall be responsible for CAM.
• Triple Net Lease (NNN):
  • Option A: This is a Triple Net Lease (NNN). Tenant shall pay its pro rata share of real property taxes, insurance, and common area maintenance expenses.
  • Option B: This is not a Triple Net Lease (NNN).

Maintenance and Repair:

• Landlord's Obligations: The Landlord shall be responsible for maintaining the structural elements of the Premises, including the roof, foundation, and exterior walls, as well as the common areas.
• Tenant's Obligations: The Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, including but not limited to the plumbing, electrical systems, and HVAC system within the Premises.
• Notice and Remediation: If either party fails to perform its maintenance obligations, the other party may provide written notice of the deficiency. If the deficiency is not cured within [Number] days, the non-breaching party may perform the required maintenance and recover the costs from the breaching party.
• Equipment Servicing: The tenant is responsible for servicing its own equipment.

Permitted Uses and Restrictions:

• Permitted Uses: The Premises may be used only for the purpose of [Permitted Use].
• Prohibited Activities: The following activities are prohibited on the Premises: [List of Prohibited Activities].
• Zoning and Licensing: The Tenant shall be responsible for complying with all applicable zoning and licensing laws and regulations.
• Exclusivity:
  • Option A: Landlord grants tenant exclusive rights for [Permitted Use] within [defined geographic area/property].
  • Option B: No exclusivity is granted.
• Business Operation Standards: Tenant shall operate its business in a professional and lawful manner, and shall not create any nuisance or disturbance to other tenants or occupants of the building.

Compliance with Laws:

• General Compliance: Both Landlord and Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including but not limited to the Americans with Disabilities Act (ADA), environmental regulations, and the Pennsylvania Landlord and Tenant Act of 1951.
• Accessibility: Tenant is responsible for complying with all ADA requirements regarding the rented space.

Tenant Improvements:

• Approval: Any alterations or improvements to the Premises must be approved in writing by the Landlord prior to commencement of work.
• Ownership: All improvements made by the Tenant shall become the property of the Landlord upon the termination of this Lease, unless otherwise agreed in writing.
• Restoration: The Tenant shall restore the Premises to its original condition upon the termination of this Lease, unless otherwise agreed in writing.
• Tenant Allowance:
  • Option A: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount].
  • Option B: No tenant improvement allowance will be provided.

Subletting and Assignment:

• Prohibition:
  • Option A: The Tenant shall not sublet the Premises or assign this Lease without the prior written consent of the Landlord, which consent shall not be unreasonably withheld.
  • Option B: The Tenant shall not sublet the Premises or assign this Lease without the prior written consent of the Landlord, which may be withheld in Landlord's sole discretion.
• Conditions: Any subletting or assignment shall be subject to the following conditions: [List of Conditions].

Personal Guarantee:

• Option A: [Guarantor Name], residing at [Guarantor Address], hereby personally guarantees the Tenant's performance of all its obligations under this Lease.
• Option B: No personal guarantee is required.

Insurance:

• Liability Insurance: The Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence.
• Property Insurance: The Tenant shall maintain property insurance covering the Premises and its contents.
• Business Interruption Insurance: The Tenant shall maintain business interruption insurance.
• Additional Insured: The Landlord shall be named as an additional insured on the Tenant's liability insurance policy.
• Proof of Insurance: The Tenant shall provide the Landlord with a certificate of insurance evidencing the required coverage prior to the commencement of the Lease term and upon each renewal of the policy.

Indemnification:

• General Indemnification: The Tenant shall indemnify and hold harmless the Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of or relating to the Tenant's use or occupancy of the Premises, or the Tenant's negligence or breach of this Lease. The landlord will indemnify and hold harmless the Tenant from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of or relating to the Landlord's negligence or breach of this Lease.

Default and Remedies:

• Events of Default: The following shall constitute events of default under this Lease: [List of Events of Default].
• Notice and Cure: Upon the occurrence of an event of default, the non-defaulting party shall provide written notice to the defaulting party. The defaulting party shall have [Number] days to cure the default.
• Landlord's Remedies: If the Tenant fails to cure a default within the cure period, the Landlord may terminate this Lease, re-enter the Premises, and pursue any other remedies available at law or in equity, including but not limited to eviction and damages.

Renewal or Termination:

• Renewal Option: Tenant shall have the option to renew this lease for an additional term of [Number] years. The rate shall be determined [state method of determination].
• Notice Requirement: Any notice of renewal or termination must be given at least [Number] days prior to the expiration of the then-current term.
• Holdover: If the Tenant remains in possession of the Premises after the expiration of the Lease term without a written agreement, the tenancy shall be deemed a month-to-month tenancy, subject to the terms and conditions of this Lease, except that the rent shall be [Holdover Rent Rate].

Entry and Inspection:

• Landlord's Right to Enter: The Landlord shall have the right to enter the Premises for inspection, repairs, or showings, upon reasonable notice to the Tenant, except in cases of emergency. "Reasonable notice" under Pennsylvania law is typically considered 24 hours.

Signage:

• Approval: Any signage to be installed by the Tenant on the exterior or interior of the Premises must be approved in writing by the Landlord.
• Restrictions: The following signage restrictions shall apply: [List of Signage Restrictions].

Hazardous Materials:

• Prohibition: The Tenant shall not store, use, or dispose of any hazardous materials on the Premises in violation of applicable environmental laws and regulations.
• Liability: The Tenant shall be liable for any spills or releases of hazardous materials on the Premises.

Alterations and Improvements:

• Consent Required: The Tenant shall not make any alterations or improvements to the Premises without the prior written consent of the Landlord.

Dispute Resolution:

• Negotiation: The parties shall attempt to resolve any disputes arising out of or relating to this Lease through good faith negotiation.
• Mediation: If negotiation is unsuccessful, the parties shall attempt to resolve the dispute through mediation.
• Choice of Law: This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.
• Jurisdiction: Any legal action or proceeding arising out of or relating to this Lease shall be brought in the courts of Pennsylvania.

Casualty and Condemnation:

• Casualty: If the Premises are damaged by fire or other casualty, the Landlord shall repair the Premises within a reasonable time. If the Premises are rendered untenantable, the Tenant's rent shall be abated until the Premises are restored.
• Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate.

Waiver of Subrogation: Landlord and Tenant hereby waive all rights of recovery against each other, or against any other tenant of the Building, for loss of or damage to the property of either party to the extent such loss or damage is covered by insurance.

Rules and Regulations: The Tenant shall comply with all rules and regulations promulgated by the Landlord for the use of the Premises and the building.

Quiet Enjoyment: The Landlord covenants that the Tenant shall have quiet enjoyment of the Premises during the term of this Lease.

Estoppel Certificate: The Tenant shall execute and deliver to the Landlord, within [Number] days of request, an estoppel certificate confirming the terms of this Lease.

Notice: All notices required or permitted under this Lease shall be in writing and shall be deemed given when personally delivered, sent by certified mail, or sent by reputable overnight courier to the addresses set forth above.

Lead-Based Paint Disclosure: [Include Lead-Based Paint Disclosure if applicable based on building age].

Asbestos Disclosure: [Include Asbestos Disclosure if applicable].

Brokers:

• Disclosure: [Broker Name] represents [Landlord/Tenant] in this transaction.
• Commission: The Landlord shall be responsible for paying the brokerage commission.

Pennsylvania Statutory Requirements:

• Security Deposit: Landlord will comply with all provisions of the Pennsylvania Landlord Tenant Act relating to security deposits.

COVID-19/Force Majeure:

• Option A: Neither party shall be liable for any failure to perform its obligations under this Lease to the extent that such failure is caused by a force majeure event, including but not limited to acts of God, war, terrorism, government regulations, or epidemics.
• Option B: This Lease does not include a force majeure clause related to COVID-19 or other events.

Schedules and Exhibits: The following schedules and exhibits are attached to and incorporated into this Lease:

• Exhibit A: Site Plan
• Exhibit B: [Other Exhibits]

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

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[Landlord Name], Landlord

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[Tenant Name], Tenant

Attestation:

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Witness Signature

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Printed Witness Name