Rhode Island retail lease agreement template

Rhode Island Retail Lease Agreement

This Retail 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], residing at [Tenant Address], hereinafter referred to as "Tenant."

Recitals:

This Lease is made with reference to the following facts:

• Landlord is the owner of that certain real property commonly known as [Property Address], Rhode Island and further described as [Legal Description and Parcel ID] (the "Property").
• Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, a portion of the Property for the purpose of conducting retail business.
• The parties desire to set forth the terms and conditions of their agreement in writing.

Premises:

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the retail space (the "Premises") located at [Specific Address within Property], consisting of approximately [Square Footage] square feet, as outlined in Exhibit A attached hereto and made a part hereof.

• Option A: The Premises includes the following exclusive use areas: [List of Exclusive Use Areas]
• Option B: The Premises shares the following common areas: [List of Common Areas]. Landlord reserves the right to alter the nature of common areas, within reason.
• Option C: The Premises includes the following reserved rights for Tenant: [List of Reserved Rights, e.g., Signage, Outdoor Seating]

Permitted Use:

The Premises shall be used and occupied by Tenant solely for the purpose of conducting [Specific Retail Business Type] retail activities, and for no other purpose. Tenant acknowledges that this use is consistent with the Property's zoning and Landlord's business plan.

• Option A: Tenant shall not sell or offer for sale any items that directly compete with existing tenants in the Property. Specifically, Tenant shall not sell [List of Prohibited Items].
• Option B: Tenant shall comply with all applicable Rhode Island state and municipal zoning ordinances, business licensing, health, safety, and accessibility codes, including ADA compliance and relevant consumer protection laws.
• Option C: Tenant acknowledges that Landlord may approve or disapprove any planned retail activities based on the Landlord's own judgment of what might harm existing tenants.

Lease Term:

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

• Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the Expiration Date. The rent for any renewal term shall be [Rent Escalation Terms, e.g., adjusted to market rate].
• Option B: Either party may terminate this Lease upon [Number] days written notice in the event of [Conditions for Early Termination, e.g., casualty, condemnation].

Rent:

The base rent for the Premises shall be [Dollar Amount] per [Month/Quarter/Year], payable in advance on the [Day] day of each [Month/Quarter/Year], commencing on the Commencement Date.

• Option A: In addition to the base rent, Tenant shall pay to Landlord percentage rent equal to [Percentage]% of Tenant’s gross sales in excess of [Dollar Amount] per [Year]. Tenant shall provide Landlord with audited sales reports on a [Frequency] basis.
• Option B: Tenant shall pay, as additional rent, its proportionate share of Common Area Maintenance (CAM) fees, which are currently estimated to be [Dollar Amount] per [Month/Quarter/Year]. CAM fees may include but are not limited to trash removal, landscaping, and snow removal. Landlord must provide a yearly statement of all costs.
• Option C: Rent shall escalate by [Percentage]% annually.

Security Deposit:

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 A: The security deposit may be increased if Tenant makes modifications or alterations to the Premises.
• Option B: Landlord shall not be required to hold the security deposit in an interest-bearing account unless required by Rhode Island law.
• Option C: Landlord shall return the security deposit to Tenant within [Number] days after the expiration or termination of this Lease, less any deductions for damages or unpaid rent. Landlord must provide an itemized deduction list if any costs are deducted from the deposit.

Taxes:

Landlord shall be responsible for payment of real estate taxes on the Property. Tenant shall be responsible for payment of personal property taxes related to Tenant's business operations on the Premises.

• Option A: Tenant shall pay any increases in real estate taxes attributable to Tenant’s improvements to the Premises.
• Option B: Tenant shall pay their proportionate share of special municipal assessments levied against the Property.
• Option C: If Landlord is not responsible for taxes on Tenant's property, the Tenant is responsible for informing the landlord.

Insurance:

Tenant shall maintain commercial general liability insurance with coverage of at least [Dollar Amount] per occurrence and property insurance covering Tenant’s personal property and improvements on the Premises. Landlord shall maintain fire and property insurance on the building.

• Option A: Tenant shall name Landlord as an additional insured on its commercial general liability insurance policy.
• Option B: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage prior to the Commencement Date and upon renewal of the policies.
• Option C: Tenant must purchase business interruption insurance for losses.

Repair and Maintenance:

Landlord shall be responsible for maintaining the structural integrity of the building, including the roof, foundation, and exterior walls. Tenant shall be responsible for maintaining the interior of the Premises, including fixtures, equipment, and retail-specific modifications.

• Option A: Landlord shall maintain all common areas, including hallways, restrooms, and parking areas.
• Option B: Tenant shall be responsible for all repairs to the Premises caused by Tenant's negligence or misuse.
• Option C: Tenant is responsible for janitorial services and waste removal for the Premises.

Tenant Improvements:

Any alterations or improvements to the Premises by Tenant shall require Landlord’s prior written approval.

• Option A: Tenant shall obtain all necessary permits and inspections for any alterations or improvements.
• Option B: Upon the expiration or termination of this Lease, Tenant shall, at Landlord’s option, either remove all alterations and improvements and restore the Premises to its original condition or leave the alterations and improvements in place.
• Option C: All improvement contracts must be agreed upon between the parties to limit potential damage.

Compliance with Laws:

Tenant shall comply with all applicable building regulations, retail-specific health and safety regulations, hazardous materials restrictions, and state-mandated environmental disclosures.

• Option A: Tenant shall obtain all necessary permits and licenses to operate its retail business on the Premises.
• Option B: Tenant shall comply with all applicable ADA requirements.
• Option C: Tenant must comply with all fire safety requirements.

Exclusive Use/Prohibited Use:

Landlord shall not lease any other space in the Property to a business that directly competes with Tenant’s [Specific Retail Business Type] retail business.

• Option A: Landlord reserves the right to lease space to businesses that offer similar products or services as Tenant, provided that such businesses do not directly compete with Tenant’s primary retail business.
• Option B: The Tenant will not sell items which might be viewed as offensive, illegal, dangerous or damaging to the reputation of the property or its tenants.
• Option C: The Tenant's retail must not disrupt adjacent tenants.

Operating Rules:

Tenant shall comply with all rules and regulations established by Landlord for the operation of the Property, including hours of operation, noise levels, customer access, merchandise display, and advertising signage.

• Option A: Tenant shall maintain its premises in a clean and orderly condition.
• Option B: All signage must comply with Rhode Island sign ordinances and any applicable shopping center rules. Landlord approval is required for all signage.
• Option C: The tenant must have sufficient staff to run a successful retail business.

Default and Breach:

If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall provide Tenant with written notice of the default. Tenant shall have [Number] days to cure the default.

• Option A: If Tenant fails to cure the default within the specified period, Landlord may terminate this Lease and pursue all available remedies, including eviction.
• Option B: Landlord’s remedies for Tenant’s default shall include possession of the Premises, re-entry, acceleration of rent, and recovery of eviction costs.
• Option C: All notices of breach shall comply with Rhode Island law for notice and right to cure.

Subletting and Assignment:

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

• Option A: Landlord may condition its consent to a sublease or assignment on Tenant’s payment of a transfer fee.
• Option B: In the event of a merger, asset sale, or bankruptcy, Tenant shall comply with all applicable Rhode Island commercial lease statutes regarding assignment.
• Option C: Landlord retains the right to assign this lease or transfer its right and responsibilities at any time.

Landlord Access:

Landlord shall have the right to enter the Premises for inspection, repairs, emergency, and regulatory compliance, with reasonable advance notice to Tenant, except in emergencies.

Indemnification:

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

• Option A: This indemnification provision shall be construed in accordance with Rhode Island law regarding enforceability of indemnity language.
• Option B: Landlord shall not be liable for any damages to Tenant’s property or business unless caused by Landlord’s gross negligence or willful misconduct.
• Option C: Tenant is responsible for injuries or damages within the premise only.

Signage:

Tenant shall be permitted to install signage on the Premises in accordance with Landlord’s guidelines and applicable municipal design standards.

• Option A: All signage must be approved by Landlord prior to installation.
• Option B: Tenant shall be responsible for obtaining all necessary permits for its signage.
• Option C: The tenant will have the right to change signage with notice to the Landlord.

Parking:

Tenant and its customers shall be entitled to use the parking areas designated for retail customers of the Property.

• Option A: Tenant shall comply with all parking rules and regulations established by Landlord.
• Option B: Tenant shall ensure that its employees do not park in spaces designated for customers.
• Option C: Tenant is responsible for informing customers of parking restrictions.

Move-In/Move-Out:

Tenant shall be responsible for all costs associated with its move-in and move-out, including repairs, debris removal, and restoration of the Premises to its original condition.

• Option A: Tenant shall conduct a joint inspection of the Premises with Landlord prior to move-in and upon move-out.
• Option B: Landlord shall return the security deposit to Tenant within [Number] days after move-out, less any deductions for damages or unpaid rent.
• Option C: Tenant is responsible for the disposal of any trash or property.

Dispute Resolution:

Any dispute arising out of or relating to this Lease shall be resolved through negotiation and mediation. If mediation is unsuccessful, the parties may pursue arbitration or litigation in [City], Rhode Island.

• Option A: This Lease shall be governed by and construed in accordance with the laws of the State of Rhode Island.
• Option B: The prevailing party in any litigation shall be entitled to recover its reasonable attorneys’ fees and costs.
• Option C: Mediation is required before litigation.

Rhode Island Specific Laws:

This Lease is subject to the Commercial Leasing Disclosures Act and other applicable Rhode Island laws.

• Option A: Tenant acknowledges receipt of all required Rhode Island-specific disclosures, including lead paint and flood zone notifications (if applicable).
• Option B: Tenant shall comply with all applicable Rhode Island fire code requirements.
• Option C: Tenant shall be responsible for obtaining all required municipal rental registration ordinances (if applicable).

Utilities:

Tenant shall be responsible for paying all utilities consumed on the Premises, including electricity, gas, water, and sewer.

• Option A: Utilities shall be separately metered to the Premises.
• Option B: Tenant shall be responsible for maintaining its own backup power system, if needed.
• Option C: Landlord will ensure the delivery of utilities to the property.

Trade Fixtures:

All trade fixtures installed by Tenant on the Premises shall remain the property of Tenant and may be removed by Tenant upon the expiration or termination of this Lease, provided that Tenant repairs any damage caused by such removal.

Force Majeure:

Neither party shall be liable for any failure to perform its obligations under this Lease due to causes beyond its reasonable control, including acts of God, war, strikes, or other unforeseen events.

• Option A: Rent shall be abated during any period of force majeure that prevents Tenant from operating its business on the Premises.
• Option B: Parties are not responsible for the actions of other persons or governments.
• Option C: Notification must be provided to the other party as soon as possible.

Entire Agreement:

This Lease 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.

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

____________________________
[Landlord Name]

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[Tenant Name]