South Dakota commercial lease agreement template

South Dakota Commercial Lease Agreement

This Commercial Lease Agreement ("Lease") is made and effective as of this [Date], by and between:

• [Landlord's Full Legal Name], residing at [Landlord's Business Address], and having a contact number of [Landlord's Contact Number] ("Landlord"),
• and
• [Tenant's Full Legal Name], a [Entity Type (e.g., Corporation, LLC)] residing at [Tenant's Business Address], and having a contact number of [Tenant's Contact Number] ("Tenant").

1. Premises

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

• Property Address: [Property Address]
• Suite/Unit Number: [Suite/Unit Number]
• Legal Description: [Legal Property Description]
• Total Square Footage: [Square Footage]
• Type of Space: [Type of Space (e.g., Retail, Office, Industrial)]
• Included Common Areas: [Description of Common Areas Included]
• Parking Spaces: [Number] designated parking spaces.

2. Use of Premises

The Premises shall be used by the Tenant for the following purposes: [Permitted Business Activities].

• Option A: The Tenant shall have the exclusive right to operate a [Type of Business] within the [Building Name/Area].
• Option B: The Tenant's use of the Premises shall not violate any applicable zoning ordinances or restrictions, specifically: [Zoning Restrictions].
• Option C: Co-tenancy clause: If [Anchor Tenant] vacates [Property Address], tenant has the right to terminate this lease within [number] days.

3. Lease Term

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

• Option A: Fixed Term. The lease term shall be a fixed term of [Number] years.
• Option B: Month-to-Month. The lease shall automatically renew on a month-to-month basis. Either party can terminate with [Number] days' written notice.
• Option C: Renewal Option. Tenant shall have the option to renew this lease for an additional term of [Number] years, provided Tenant provides Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the initial term.
• Holdover: If Tenant remains in possession of the Premises after the expiration or termination of the Lease, such occupancy shall be deemed a month-to-month tenancy, subject to all terms and conditions of this Lease, except that the monthly rent shall be [Percentage]% of the then-current monthly rent.

4. 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 [Date].

• Option A: Rent shall be paid by [Payment Method (e.g., check, electronic transfer)] to [Payment Address/Account Information].
• Option B: Late Payment Fee. A late payment fee of [Dollar Amount] shall be charged for any rent payment received more than [Number] days after the due date.
• Option C: Returned Payment Fee. A fee of [Dollar Amount] will be charged for any returned payment.
• Option D: Rent Escalation. The base rent shall increase annually by [Percentage]% on each anniversary of the commencement date. Alternatively, the base rent will be adjusted annually based on the Consumer Price Index (CPI) using the following formula: [CPI Formula]. Or, step-up rent increases according to the following schedule: [Schedule].

5. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount] to secure Tenant's performance of its obligations under this Lease.

• Option A: The security deposit may be used to cover damages to the Premises, unpaid rent, or other breaches of this Lease by Tenant.
• Option B: The security deposit shall be returned to Tenant, less any deductions, within [Number] days after the termination of this Lease and Tenant's surrender of the Premises in accordance with the terms of this Lease, provided the tenant has complied with SDCL 43-32-24.
• Option C: No security deposit is required under this lease.

6. Additional Charges

In addition to the base rent, Tenant shall be responsible for the following additional charges:

• Operating Expenses: [Tenant/Landlord] shall pay operating expenses.
• Property Taxes: [Tenant/Landlord] shall pay property taxes.
• Building Insurance: [Tenant/Landlord] shall pay building insurance.
• Common Area Maintenance (CAM) Fees: [Tenant/Landlord] shall pay CAM fees.
• Utilities: [Tenant/Landlord] shall pay for utilities.
• Repairs and Maintenance: [Tenant/Landlord] shall pay for repairs and maintenance.
• The lease is a [Gross/Modified Gross/Net/Double Net/Triple Net] lease.
• Tenant's proportionate share of expenses is [percentage]%.

7. Maintenance and Repair

Landlord's Responsibilities:

• The Landlord shall be responsible for maintaining the structural elements of the building, including the roof, foundation, and exterior walls.
• The Landlord shall maintain the common areas.
• Landlord will maintain and repair: [Description]

Tenant's Responsibilities:

• The Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures and equipment.
• The Tenant shall be responsible for routine maintenance and minor repairs to the HVAC, plumbing, and electrical systems within the Premises.
• Tenant will maintain and repair: [Description]

8. Tenant Improvements and Alterations

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

• Option A: Landlord shall provide a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.
• Option B: All fixtures and improvements installed by Tenant shall become the property of Landlord upon the expiration or termination of this Lease.
• Option C: Tenant shall restore the Premises to its original condition upon the expiration or termination of this Lease.

9. Signage and Parking

Tenant shall have the right to install signage on the Premises subject to Landlord's approval and applicable local ordinances.

• Option A: Tenant shall be entitled to [Number] parking spaces.
• Option B: Landlord will provide access for customers to the parking lot during business hours of [Days], [Hours].
• Option C: Tenant's signage must comply with the following specifications: [Specifications].

10. Insurance

Tenant shall maintain commercial general liability insurance with a minimum coverage of [Dollar Amount].

• Option A: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage.
• Option B: Landlord and Tenant hereby waive all rights of subrogation against each other for any loss or damage to their respective property.
• Option C: Tenant will obtain property insurance for all of their equipment, inventory, and trade fixtures.

11. Indemnification

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

• Option A: Landlord shall indemnify and hold harmless Tenant from and against any and all claims, losses, damages, liabilities, and expenses arising out of Landlord's gross negligence or willful misconduct.
• Option B: Tenant's indemnification includes reasonable attorneys' fees and litigation costs.

12. Sublease and Assignment

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

• Option A: Landlord may approve or deny a sublease at their sole discretion.
• Option B: Any approved sublessee or assignee will also be required to sign and abide by the terms of the original lease agreement.
• Option C: Landlord shall be entitled to any profits earned by Tenant from any sublease or assignment.

13. Default

Events of Default: The following shall constitute events of default by Tenant under this Lease:

• Failure to pay rent when due.
• Failure to comply with any other term or condition of this Lease.
• Abandonment of the Premises.
• Option A: Cure Period. Tenant shall have [Number] days after written notice from Landlord to cure any default, except for the failure to pay rent, in which case Tenant shall have [Number] days to cure.
• Option B: Landlord's Remedies. Upon the occurrence of an event of default, Landlord shall have the right to terminate this Lease, re-enter the Premises, and pursue any other remedies available at law or in equity.
• Option C: Default interest of [percentage]% will be charged on all overdue balances.

14. Damage and Destruction

If the Premises are damaged by fire or other casualty, Landlord shall promptly repair the Premises.

• Option A: Rent shall be abated during the period of repair in proportion to the extent to which the Premises are untenantable.
• Option B: If the Premises are substantially damaged and cannot be repaired within [Number] days, either party may terminate this Lease.
• Option C: The Tenant has the option to terminate the lease if the Premises is damaged by fire or other casualty.

15. Condemnation

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

• Option A: Any award for the taking shall be allocated between Landlord and Tenant in proportion to their respective interests in the Premises.
• Option B: If only a portion of the Premises is taken, this Lease shall continue in effect, but the rent shall be reduced in proportion to the reduction in the square footage of the Premises.

16. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through [Mediation/Arbitration/Court Litigation].

• Option A: All claims will be submitted to binding arbitration in [City], South Dakota.
• Option B: The prevailing party in any dispute shall be entitled to recover its reasonable attorney's fees and costs.
• Option C: The parties waive their right to a jury trial.

17. Governing Law

This Lease shall be governed by and construed in accordance with the laws of the State of South Dakota. SDCL Chapter 43 shall be applicable to this lease.

• Option A: In the case of any violation of South Dakota Statute 43-32-24, the security deposit will not be forfeited by Tenant.
• Option B: Landlord will abide by South Dakota law regarding Landlord/Tenant rights.

18. Miscellaneous

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

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

Subordination and Attornment: This Lease shall be subordinate to any existing or future mortgages or deeds of trust encumbering the Premises. Tenant shall attorn to any successor landlord.

Non-Waiver: No waiver by Landlord of any breach of this Lease shall be deemed a waiver of any subsequent breach.

Entire Agreement: This Lease constitutes the entire agreement between the parties and supersedes all prior negotiations and agreements.

Amendments: Any amendment to this Lease must be in writing and signed by both parties.

Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

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

Compliance with Laws: Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including ADA compliance.

19. Optional Clauses

• Hazardous Materials: [Clause Regarding Hazardous Materials].
• Force Majeure: [Clause Regarding Force Majeure].
• Personal Guaranty: [Clause Regarding Personal Guaranty].
• Environmental Indemnity: [Clause Regarding Environmental Indemnity].
• Relocation Rights: [Clause Regarding Relocation Rights].
• Expansion/Contraction: [Clause Regarding Expansion/Contraction Rights].
• Rules and Regulations: [Clause Regarding Rules and Regulations].
• Right of First Refusal/Offer: [Clause Regarding Right of First Refusal/Offer].
• Confidentiality: [Clause Regarding Confidentiality].
• Agricultural Lease Addendum: [Attach Agricultural Lease Addendum if Applicable].

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

____________________________
[Landlord's Signature]

____________________________
[Landlord's Printed Name]

____________________________
[Tenant's Signature]

____________________________
[Tenant's Printed Name]