South Carolina commercial lease agreement template

South Carolina Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into as of [Date], by and between [Landlord's Full Legal Name], whose address is [Landlord's Address], hereinafter referred to as "Landlord," and [Tenant's Full Legal Name], whose address is [Tenant's Address], hereinafter referred to as "Tenant."

If Landlord is an entity, its type is:

• Option A: Individual
• Option B: Limited Liability Company ([Landlord's LLC State] LLC)
• Option C: Corporation ([Landlord's Corporation State] Corporation)
• Option D: Other: [Other Landlord Entity Type]

If Tenant is an entity, its type is:

• Option A: Individual
• Option B: Limited Liability Company ([Tenant's LLC State] LLC)
• Option C: Corporation ([Tenant's Corporation State] Corporation)
• Option D: Other: [Other Tenant Entity Type]

1. Premises

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

• [Street Address], Unit/Suite [Unit/Suite Number], [City], South Carolina [Zip Code].
• Square Footage: [Square Footage] square feet.
• Location within the Property: [Description of Location within Property, e.g., "First floor, western side of the building"].
• Permitted Use: [Detailed description of permitted uses of the Premises].
• Common Areas: Tenant shall have the right to use the common areas of the property, including but not limited to [List common areas, e.g., "parking lots, hallways, restrooms"].
• Exclusive Use: [Description of any exclusive use granted to Tenant, if any. e.g., "Landlord shall not lease any other space in the building to a business operating a similar type of business."]. If none, state "None."

2. Lease Term

• Commencement Date: [Date]
• Expiration Date: [Date]
• Length of Tenancy: [Number] years and [Number] months.

• Renewal Options:
• Option A: Tenant shall have [Number] option(s) to renew this Lease for a term of [Number] years each. To exercise such option, Tenant must give Landlord written notice not less than [Number] days and not more than [Number] days prior to the expiration of the then-current term.
• Option B: There are no renewal options.

• Conditions for Renewal: If the option to renew is exercised, the rent for the renewal term shall be [Method of determining renewal rent, e.g., "the then-prevailing market rent as determined by a mutually agreed-upon appraiser" or "increased by [Percentage]%"].

3. Rent

• Base Rent: [Dollar Amount] per month.
• Payment Frequency: Monthly.
• Due Date: Rent shall be due on the [Day] day of each month.
• Payment Method: [Acceptable payment methods, e.g., "check, wire transfer, or ACH"].
• Late Payment Penalty: If rent is not received within [Number] days after the due date, a late fee of [Dollar Amount] or [Percentage]% of the overdue amount will be charged.
• Interest on Late Payments: Overdue amounts shall accrue interest at a rate of [Percentage]% per annum.

• Rent Escalation:
• Option A: CPI Adjustment: Rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Index].
• Option B: Scheduled Increases: Rent shall increase by [Dollar Amount] or [Percentage]% on [Date] of each year.
• Option C: Step Rent: The monthly rent shall be as follows:
• [Date] to [Date]: [Dollar Amount]
• [Date] to [Date]: [Dollar Amount]
• Option D: No Rent Escalation.

4. Additional Charges and Expenses

• Lease Type:
• Option A: Gross Lease: Landlord shall pay all property taxes, insurance, utilities, and common area maintenance (CAM) expenses.
• Option B: Modified Gross Lease: Landlord shall pay [List Landlord paid expenses]. Tenant shall pay [List Tenant paid expenses].
• Option C: Triple Net (NNN) Lease: Tenant shall pay, in addition to the base rent, all property taxes, insurance, utilities, and common area maintenance (CAM) expenses.

• Property Taxes:
• If NNN or Modified Gross: Tenant shall pay [Percentage]% of the property taxes.
• Timing of Payment: Tenant shall pay property taxes [Frequency, e.g., "monthly", "quarterly"] to [Payee, e.g., "Landlord" or "directly to the taxing authority"].

• Insurance:
• If NNN or Modified Gross: Tenant shall pay [Percentage]% of the building insurance premiums.
• Timing of Payment: Tenant shall pay insurance costs [Frequency, e.g., "monthly", "quarterly"] to [Payee, e.g., "Landlord" or "directly to the insurance company"].

• Utilities: Tenant shall be responsible for the direct payment of the following utilities: [List of utilities, e.g., "electricity, gas, water, sewer"]. Landlord shall be responsible for [List of utilities, if any, e.g., "trash removal"].

• Common Area Maintenance (CAM):
• If NNN or Modified Gross: Tenant shall pay [Percentage]% of CAM expenses. CAM expenses include, but are not limited to: [List of CAM expenses, e.g., "landscaping, snow removal, parking lot maintenance, security"].
• Payment of CAM: Tenant shall pay CAM expenses [Frequency, e.g., "monthly", "quarterly"] to Landlord. Landlord shall provide a detailed accounting of CAM expenses [Frequency, e.g., "annually"].

• Repairs: See Section 7 for details.
• Janitorial Expenses: [Specify who is responsible for janitorial services and related expenses, e.g., "Tenant is responsible for janitorial services for the Premises. Landlord is responsible for janitorial services in the common areas."].

5. Deposits

• Security Deposit: [Dollar Amount].
• Holding Deposit: [Dollar Amount] (if applicable). This holding deposit is/is not (choose one) refundable if the lease is not executed.

• Conditions of Withholding: The security deposit may be used to cover damages to the Premises beyond normal wear and tear, unpaid rent, or other breaches of this Lease.
• Allowable Uses by Landlord: Landlord may use the security deposit to remedy Tenant's default in the payment of rent or other charges, to repair damage to the Premises caused by Tenant or Tenant's invitees, or to clean the Premises if Tenant fails to do so upon termination of the Lease.

• Security Deposit Return: Landlord shall return the security deposit, less any deductions, to Tenant within [Number] days after the termination of the Lease and Tenant's surrender of the Premises, in accordance with South Carolina law. The security deposit shall be held in an escrow account at [Bank Name], account number [Account Number].

6. Use and Occupancy

• Permitted Business Activities: Tenant shall use the Premises only for the Permitted Use described in Section 1.
• Prohibited Business Activities: Tenant shall not use the Premises for any unlawful purpose or any purpose that violates any applicable zoning ordinance or regulation.
• Compliance with Zoning and Regulatory Requirements: Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations.
• Signage: Tenant shall have the right to install signage subject to Landlord's approval and compliance with all applicable ordinances. The size, location, and design of the signage must be approved by Landlord in writing.
• Hours of Operation: [Specify any restrictions on hours of operation, e.g., "Tenant's business hours shall be limited to 7:00 AM to 9:00 PM daily."].
• Nuisance: Tenant shall not create any nuisance or disturbance that interferes with the quiet enjoyment of other tenants in the building.

7. Maintenance, Repair, and Alterations

• Landlord's Responsibilities: Landlord shall maintain the structural components of the building, including the roof, foundation, and exterior walls. Landlord is responsible for HVAC. Landlord will maintain all common areas.

• Tenant's Responsibilities: Tenant shall maintain the interior of the Premises in good repair and condition, including but not limited to [List specific responsibilities, e.g., "maintaining plumbing fixtures, replacing light bulbs, and keeping the Premises clean and free from pests"].
• HVAC:
• Option A: Landlord shall maintain the HVAC system.
• Option B: Tenant shall maintain the HVAC system and provide Landlord with maintenance records upon request.

• Alterations and Improvements: Tenant shall not make any alterations or improvements to the Premises without Landlord's prior written consent.
• Restoration: Upon the expiration or termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing by Landlord.

8. Access Rights

• Landlord's Entry: Landlord shall have the right to enter the Premises at reasonable times to inspect the Premises, make necessary repairs, or show the Premises to prospective tenants or purchasers, provided Landlord gives Tenant at least [Number] hours' notice, except in cases of emergency.
• Emergency Access: Landlord may enter the Premises without notice in cases of emergency.

9. Assignment and Subletting

• 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.
• Notice: Tenant shall provide Landlord with written notice of any proposed assignment or subletting at least [Number] days prior to the effective date of the proposed assignment or sublease.

10. Insurance

• Tenant's Insurance: Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount] per occurrence and property insurance covering Tenant's personal property and improvements in the Premises.
• Landlord's Insurance: Landlord shall maintain property insurance on the building.
• Proof of Insurance: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage prior to the commencement of the Lease and upon each renewal of the insurance policy.
• Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant each waive any and all rights of recovery against the other for any loss or damage covered by insurance.

11. Indemnification and Liability

• Indemnification by Tenant: Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, losses, damages, liabilities, and expenses (including reasonable attorneys' fees) arising from Tenant's use of the Premises or from any act or omission of Tenant or Tenant's employees, agents, or invitees.
• Indemnification by Landlord: Landlord shall indemnify, defend, and hold harmless Tenant from and against any and all claims, losses, damages, liabilities, and expenses (including reasonable attorneys' fees) arising from Landlord's negligence or willful misconduct.

12. Casualty and Condemnation

• Casualty: If the Premises are damaged by fire or other casualty, Landlord shall repair the Premises within a reasonable time. Rent shall abate during the period of repair in proportion to the extent to which the Premises are untenantable. If the Premises are rendered wholly untenantable, either party may terminate this Lease.
• Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate. Tenant shall be entitled to any compensation awarded for Tenant's personal property and improvements. Landlord shall be entitled to any compensation awarded for the land and building.

13. Default and Remedies

• Tenant Default: The following shall constitute a default by Tenant:
• Failure to pay rent when due.
• Failure to comply with any other term or condition of this Lease.
• Landlord Default: The following shall constitute a default by Landlord:
• Failure to perform any obligation under this Lease within a reasonable time after written notice from Tenant.

• Notice and Cure: The defaulting party shall have [Number] days after written notice to cure the default.
• Landlord's Remedies: If Tenant defaults, Landlord may terminate this Lease and re-enter the Premises, or pursue any other remedies available under South Carolina law.
• Tenant's Remedies: If Landlord defaults, Tenant may pursue any remedies available under South Carolina law, including injunctive relief or damages.

14. Termination and Surrender

• Early Termination:
• Option A: Tenant shall have the right to terminate this Lease early by paying a termination fee of [Dollar Amount].
• Option B: There is no early termination right.

• Holdover: If Tenant remains in possession of the Premises after the expiration or termination of this Lease, Tenant shall be a tenant at sufferance and shall pay rent at a rate of [Percentage]% of the then-current rent.
• Surrender: Upon termination of this Lease, Tenant shall surrender the Premises to Landlord in the condition required in Section 7, reasonable wear and tear excepted.

15. Dispute Resolution

• Dispute Resolution:
• Option A: Negotiation: The parties shall first attempt to resolve any dispute through good-faith negotiation.
• Option B: Mediation: If negotiation fails, the parties shall submit the dispute to mediation.
• Option C: Arbitration: Any dispute arising out of or relating to this Lease shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.
• Option D: Litigation: Any dispute arising out of or relating to this Lease shall be resolved in the courts of South Carolina.

• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of South Carolina.
• Jurisdiction: The exclusive venue for any legal action arising out of or relating to this Lease shall be in [County Name] County, South Carolina.
• Attorney's Fees: The prevailing party in any legal action arising out of or relating to this Lease shall be entitled to recover its reasonable attorneys' fees and costs.

16. Notices and Communications

• Notices: All notices under this Lease shall be in writing and shall be deemed to have been duly given if delivered personally, sent by certified mail, or sent by reputable overnight courier to the addresses set forth in the introductory paragraph of this Lease.
• Landlord's Notice Address: [Landlord's Notice Address]
• Tenant's Notice Address: [Tenant's Notice Address]

17. Representations and Warranties

• Landlord's Representations: Landlord represents and warrants that Landlord has the right to lease the Premises and that the Premises are in compliance with all applicable laws and regulations.
• Tenant's Representations: Tenant represents and warrants that Tenant has the authority to enter into this Lease and that Tenant's use of the Premises will comply with all applicable laws and regulations.

18. Environmental and Hazardous Substances

• Hazardous Substances: Tenant shall not use, store, or dispose of any hazardous substances on the Premises in violation of any applicable environmental laws.
• Indemnification: Tenant shall indemnify Landlord for any damages or liabilities arising from Tenant's use of hazardous substances on the Premises.

19. Americans with Disabilities Act (ADA)

• ADA Compliance: [Specify which party is responsible for ADA compliance, e.g., "Tenant shall be responsible for complying with the Americans with Disabilities Act (ADA) with respect to Tenant's use of the Premises."]

20. Subordination, Non-Disturbance, and Attornment (SNDA)

• Subordination: This Lease shall be subordinate to any mortgage or deed of trust now or hereafter placed upon the Premises.
• Non-Disturbance: Landlord shall use reasonable efforts to obtain a non-disturbance agreement from any mortgagee providing that Tenant's lease will not be disturbed in the event of foreclosure, so long as Tenant is not in default.
• Attornment: Tenant shall attorn to any new owner of the Premises in the event of a sale or transfer of the Premises.

21. South Carolina Specific Provisions

• Commercial Lease Act: This Lease is subject to the provisions of the South Carolina Commercial Lease Act.
• Security Deposit Disclosure: The security deposit is held in an escrow account at [Bank Name], account number [Account Number].
• Habitability: Landlord warrants that the Premises are suitable for commercial use.
• Return of Security Deposit: Landlord shall return the security deposit within [Number] days of termination of the lease.
• Flood Disclosure: [Include flood disclosure if the property is in a flood zone, as required by South Carolina law.] If the property is in a flood zone, include: "The Premises is located in a designated flood zone. Tenant acknowledges receipt of notice of this fact and understands the risks associated with flooding." If the property is NOT in a flood zone, include: "Landlord represents that the Premises is not located in a designated flood zone."
• Waiver of Jury Trial: [Include only if desired by Landlord. Be aware of enforceability limitations.] Landlord and Tenant knowingly, voluntarily, and intentionally waive the right either may have to a trial by jury in respect of any litigation based on this lease, or arising out of, under or in connection with this lease or the Premises.
• Local Ordinances: Tenant shall comply with all applicable local ordinances of [City/County Name], South Carolina.

22. Optional Clauses

• Exclusivity: [Specify if Tenant has exclusive rights to operate a certain type of business in the building, e.g., "Landlord shall not lease any other space in the building to a business operating a [Type of Business]."]. If none, state "None."

• Signage Rights: [Detailed description of Tenant's signage rights, including size, location, and design requirements.]
• Right of First Refusal/Offer: [Specify if Tenant has a right of first refusal or first offer to lease adjacent space.]

• Option to Purchase: [Specify if Tenant has an option to purchase the Premises.]

• Relocation Clause: [Specify if Landlord has the right to relocate Tenant to another space in the building.]

• Expansion Rights: [Specify if Tenant has the right to expand into adjacent space.]
• Parking Rights:
• Assigned Parking: Tenant shall have [Number] assigned parking spaces located at [Location].
• Unassigned Parking: Tenant shall have the right to use unassigned parking spaces in the common parking areas.
• Additional Parking: Tenant may lease additional parking spaces for [Dollar Amount] per space per month.

23. Equal Opportunity

• Equal Business Opportunity: Landlord and Tenant agree to comply with all applicable federal and state anti-discrimination laws, including Title VII of the Civil Rights Act and the South Carolina Human Affairs Law, in the operation of their respective businesses.

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

____________________________

[Landlord's Full Legal Name]

____________________________

[Tenant's Full Legal Name]