Pennsylvania retail lease agreement template

Pennsylvania Retail Lease Agreement

This Retail 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], a [Tenant's Legal Entity Type, e.g., LLC, Corporation], with a principal place of business at [Tenant's Address] (“Tenant”).

Premises:

Option A: The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the premises located at [Street Address], Suite/Unit [Suite/Unit Number], City of [City], County of [County], Commonwealth of Pennsylvania, (the "Premises").

Option B: As described in Exhibit A, attached hereto and incorporated herein. The Premises consists of approximately [Square Footage] rentable square feet.

The Premises is located within a larger shopping center/complex commonly known as [Shopping Center Name (if applicable)].

Permitted Use:

Option A: The Premises shall be used and occupied solely for the purpose of operating a [Type of Retail Business, e.g., Clothing Store, Restaurant].

Option B: The Tenant shall not use the Premises for any purpose other than the retail sale of [Specific Products/Services].

Tenant shall comply with all federal, state, and local laws, ordinances, rules, and regulations applicable to its business, including, without limitation, the Americans with Disabilities Act (ADA), and all applicable health, safety, fire, and accessibility codes.

Prohibited Use:

Tenant shall not use the Premises for any of the following purposes:

• Any use that violates any applicable law, ordinance, rule, or regulation.
• Any use that creates a nuisance or disturbs other tenants.
• Any adult-oriented business, cannabis dispensary, or gambling establishment.
• Any activity that violates local zoning ordinances.

Lease Term:

Option A: The term of this Lease shall commence on [Start Date] and shall expire on [End Date].

Option B: This Lease shall be for a term of [Number] years, commencing on [Start Date].

Renewal Option: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current term.

Holdover: If Tenant remains in possession of the Premises after the expiration of the Lease Term, such holdover 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: The base rent for the Premises shall be [Dollar Amount] per year, payable in equal monthly installments of [Dollar Amount], due on the first day of each month, commencing on [Start Date].

Percentage Rent: In addition to the Base Rent, Tenant shall pay to Landlord percentage rent equal to [Percentage]% of Tenant's gross sales exceeding [Dollar Amount] in any lease year.

Late Payment: If any rent payment is not received within [Number] days after the due date, Tenant shall pay a late fee of [Dollar Amount] or [Percentage]% of the overdue amount, whichever is greater, but not exceeding the limits imposed by Pennsylvania law.

Payment Method: All rent payments shall be made payable to [Payee Name] and delivered to [Payment Address].

Security Deposit:

Option A: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant's obligations under this Lease.

Option B: The security deposit shall be returned to Tenant within [Number] days after the expiration of the Lease Term, less any deductions for damages to the Premises or unpaid rent.

The security deposit shall be held in an escrow account in compliance with Pennsylvania law.

Operating Expenses:

Option A (Triple Net): Tenant shall be responsible for paying its pro rata share of all operating expenses of the property, including, but not limited to, real estate taxes, insurance, and common area maintenance (CAM) charges.

Option B (Gross): Landlord shall be responsible for paying all operating expenses of the property.

CAM Charges: Tenant's pro rata share of CAM charges shall be [Percentage]% of the total CAM charges for the property.

Tenant Improvements:

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

Option B: Landlord shall contribute [Dollar Amount] towards tenant improvements.

All tenant improvements shall be subject to Landlord's prior written approval and shall comply with all applicable building codes and regulations. All improvements shall require permitting from the appropriate Pennsylvania municipality.

Maintenance and Repair:

Landlord shall be responsible for maintaining the structural elements of the Premises, including the roof, foundation, and exterior walls.

Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures, equipment, and personal property.

Tenant shall promptly notify Landlord of any necessary repairs.

Landlord shall have the right to enter the Premises at reasonable times to inspect the same and to make such repairs as Landlord may deem necessary, with reasonable notice to Tenant, except in cases of emergency.

Insurance:

Tenant shall maintain commercial general liability insurance with limits of not less than [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate.

Landlord shall maintain property insurance covering the Premises.

Each party shall provide the other with a certificate of insurance evidencing the required coverage.

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 insurance.

Signage:

Tenant shall have the right to install signage on the Premises in accordance with Landlord's sign criteria and applicable local ordinances, including the Pennsylvania Highway Advertising Control Act if the signage is visible from a state highway.

All signage shall be subject to Landlord's prior written approval.

Default:

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

Landlord shall provide Tenant with written notice of any default and a reasonable opportunity to cure the default.

Assignment and Subletting:

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

Any assignment or subletting shall be subject to all the terms and conditions of this Lease.

Condemnation:

If the Premises are taken by eminent domain or condemned, this Lease shall terminate.

Governing Law:

This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

Dispute Resolution:

Any dispute arising out of or relating to this Lease shall be resolved through mediation in [County Name] County, Pennsylvania, before resorting to litigation.

Entire Agreement:

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

Amendments:

This Lease may be amended only by a written instrument signed by both parties.

Severability:

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

Force Majeure:

Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by a force majeure event, such as fire, flood, earthquake, or other act of God, or war, riot, strike, or other labor dispute.

Notices:

All notices under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.

Brokerage:

[Broker Name] is the broker who represented the Landlord in this transaction, and [Broker Commission Amount or Percentage] is the commission paid to the broker. [Broker Name] is the broker who represented the Tenant in this transaction, and [Broker Commission Amount or Percentage] is the commission paid to the broker.

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

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[Landlord's Full Legal Name]

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[Tenant's Full Legal Name]