Tennessee commercial lease agreement template

Tennessee Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into as of [Date], by and between:

Landlord: [Landlord Name], a [Landlord Entity Type (e.g., Corporation, LLC)], with an address at [Landlord Address], and contact information at [Landlord Phone Number] and [Landlord Email Address] (if applicable, registered agent: [Landlord Registered Agent Name] at [Landlord Registered Agent Address])

Tenant: [Tenant Name], a [Tenant Entity Type (e.g., Corporation, LLC)], with an address at [Tenant Address], and contact information at [Tenant Phone Number] and [Tenant Email Address] (if applicable, registered agent: [Tenant Registered Agent Name] at [Tenant Registered Agent Address])

1. Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Premises Address], including [Floor or Suite Number], with a legal description of: [Legal Description of Premises]. The Premises contain approximately [Square Footage] square feet.

Option A: Description of Shared/Exclusive Areas

The Premises includes the following exclusive areas: [List of Exclusive Areas].

The Premises includes the following shared areas: [List of Shared Areas], including, but not limited to, parking lots, common hallways, loading docks, and signage rights.

Option B: No Shared/Exclusive Areas

There are no shared or exclusive areas.

2. Term

Option A: Fixed Term

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

Option B: Automatic Renewal

The initial term of this Lease shall be [Number] years, commencing on [Start Date]. Thereafter, this Lease shall automatically renew for successive terms of [Renewal Term Length] unless either party gives written notice of termination at least [Number] days prior to the end of the then-current term.

Option C: Month-to-Month

The term of this Lease shall be month-to-month, commencing on [Start Date]. Either party may terminate this Lease upon [Number] days written notice to the other party.

Option D: Early Termination Right

Tenant shall have the option to terminate the Lease early, effective as of [Early Termination Date], provided that Tenant provides Landlord with written notice of its election to terminate at least [Number] days prior to the [Early Termination Date] and pays Landlord a termination fee in the amount of [Termination Fee].

3. Rent

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

Option A: Payment Method

Rent shall be payable by [Payment Method (e.g., check, wire transfer, ACH)] to [Payee Name] at [Payee Address].

Option B: Percentage Rent

In addition to the base rent, Tenant shall pay Landlord [Percentage]% of Tenant’s gross sales exceeding [Dollar Amount] per [Month/Year].

Option C: Common Area Maintenance (CAM) Charges

In addition to the base rent, Tenant shall pay its pro rata share of CAM charges, which shall be calculated as [CAM Calculation Method].

There shall be a grace period of [Number] days for rent payments. Late payments shall be subject to a late fee of [Dollar Amount] or [Percentage]% of the overdue amount, whichever is greater.

Option A: Security Deposit

Tenant shall deposit with Landlord a security deposit of [Dollar Amount] to secure the performance of Tenant’s obligations under this Lease. The security deposit shall be returned to Tenant within [Number] days after the expiration or termination of this Lease, less any amounts necessary to cover damages to the Premises or other amounts owed to Landlord.

Interest on the security deposit, if required, shall be handled according to Tennessee law.

Option B: Last Month's Rent Deposit

Tenant shall deposit with Landlord an amount equal to the last month's rent as a deposit, to be used for the final month's rental payment if Tenant satisfies all other requirements under the lease.

4. Use of Premises

The Premises shall be used solely for the purpose of [Permitted Use] and for no other purpose.

Option A: Exclusive Use

Landlord shall not lease any other space in the building to a business that directly competes with Tenant’s business.

Option B: Restrictions on Use

Tenant shall not use the Premises for [Restricted Uses].

Tenant shall comply with all applicable zoning ordinances, laws, and regulations.

5. Maintenance and Repairs

Landlord Responsibilities:

The Landlord shall be responsible for maintaining the structural integrity of the building, including the roof, foundation, and exterior walls (excluding windows and doors).

The Landlord shall be responsible for maintaining the HVAC system.

Tenant Responsibilities:

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

The Tenant shall be responsible for routine cleaning and janitorial services.

The Tenant shall be responsible for all repairs to the Premises necessitated by Tenant's use, negligence, or the use, negligence, or wrongful acts of its agents, employees, customers, or invitees.

The Landlord shall have the right to enter the Premises upon reasonable notice to inspect the Premises or to make necessary repairs.

6. Property Taxes and Assessments

Option A: Gross Lease

Landlord shall pay all real property taxes and assessments levied against the Premises.

Option B: Net Lease

Tenant shall pay its pro rata share of all real property taxes and assessments levied against the Premises.

Option C: Modified Gross Lease

Landlord shall pay all real property taxes and assessments levied against the Premises, except that if such taxes increase by more than [Percentage]% in any given year, Tenant shall be responsible for paying the amount of the increase above [Percentage]%.

Option D: Triple Net Lease (NNN)

Tenant shall pay all real property taxes, assessments, insurance premiums, and operating expenses related to the Premises, in addition to the base rent.

7. Insurance

Tenant shall maintain commercial general liability insurance with a limit of not less than [Dollar Amount] per occurrence.

Tenant shall maintain property insurance covering the Premises and Tenant’s personal property and improvements.

Landlord shall maintain property insurance covering the building.

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

Each party shall waive any rights of subrogation against the other party.

8. Assignment and Subletting

Option A: Landlord Consent Required

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

Option B: Landlord Right of First Refusal

If Tenant desires to assign this Lease or sublet the Premises, Tenant shall provide Landlord with written notice of the proposed assignment or sublease, including the terms and conditions thereof. Landlord shall have the right of first refusal to accept the proposed assignment or sublease on the same terms and conditions.

Option C: No Assignment or Subletting

Tenant shall not assign this Lease or sublet the Premises.

9. Alterations and Improvements

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

All improvements made by Tenant shall become the property of Landlord upon the expiration or termination of this Lease, unless otherwise agreed in writing.

Option A: Tenant Improvement Allowance

Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.

10. Compliance with Laws

Tenant shall comply with all applicable laws, regulations, and ordinances, including but not limited to the Americans with Disabilities Act (ADA), building codes, and environmental laws.

Option A: Hazardous Materials

Tenant shall not use, store, or dispose of any hazardous materials on the Premises without the prior written consent of Landlord.

Tenant shall indemnify and hold Landlord harmless from any claims, damages, or liabilities arising out of Tenant’s failure to comply with applicable laws.

11. Security and Access

Landlord shall provide Tenant with [Number] keys to the Premises.

Tenant shall be responsible for maintaining the security of the Premises.

Landlord shall have the right to enter the Premises upon reasonable notice to inspect the Premises or to make necessary repairs.

12. Default and Remedies

The following shall constitute events of default by Tenant:

Failure to pay rent when due.

Failure to comply with any other term or condition of this Lease.

Abandonment of the Premises.

Upon the occurrence of an event of default, Landlord shall have the right to:

Terminate this Lease and repossess the Premises. (Subject to Tennessee eviction laws)

Recover all rent and other amounts owed by Tenant.

Pursue any other remedies available at law or in equity.

Tenant shall have a grace period of [Number] days to cure any default other than non-payment of rent.

13. Casualty and Condemnation

If the Premises are damaged by fire or other casualty, this Lease shall terminate if the Premises are rendered untenantable and cannot be restored within [Number] days. Rent shall abate during the period of untenantability.

If the Premises are taken by eminent domain, this Lease shall terminate. Tenant shall be entitled to any compensation for its personal property and improvements.

14. Indemnification

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

Landlord shall indemnify and hold Tenant harmless from any claims, damages, or liabilities arising out of Landlord’s negligence.

15. Guarantees

Option A: Personal Guarantee

[Guarantor Name], residing at [Guarantor Address], personally guarantees the performance of Tenant’s obligations under this Lease.

Option B: Corporate Guarantee

[Guarantor Company Name], a [Guarantor Entity Type], guarantees the performance of Tenant's obligations under this Lease.

16. Utilities and Services

Tenant shall be responsible for arranging and paying for the following utilities: [List of Tenant-Paid Utilities].

Landlord shall be responsible for arranging and paying for the following utilities: [List of Landlord-Paid Utilities].

17. Signage

Tenant shall have the right to install signage on the Premises, subject to Landlord’s approval of the design and location.

All signage shall comply with applicable laws and regulations.

18. Parking and Common Areas

Tenant shall have the right to use [Number] parking spaces.

Parking spaces shall be designated as [Designation (e.g., exclusive, shared)].

19. Environmental Compliance

Tenant shall comply with all applicable environmental laws and regulations.

Tenant shall not use, store, or dispose of any hazardous materials on the Premises without the prior written consent of Landlord.

20. Quiet Enjoyment and Possession

Landlord covenants that Tenant shall have quiet enjoyment of the Premises during the term of this Lease, provided Tenant pays rent and performs all of its obligations under this Lease.

21. Surrender at Expiration

Upon the expiration or termination of this Lease, Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted.

Tenant shall remove all of its personal property and trade fixtures from the Premises.

22. 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 addresses set forth above.

23. Dispute Resolution

This Lease shall be governed by and construed in accordance with the laws of the State of Tennessee.

Option A: Mediation

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

Option B: Arbitration

Any dispute arising out of or relating to this Lease shall be resolved through binding arbitration in [City, Tennessee] in accordance with the rules of the American Arbitration Association.

Venue for any legal action related to this lease shall be in [County Name] County, Tennessee.

24. Legal Compliance and Special Regulatory Clauses

Tenant shall obtain all necessary business licenses and permits to operate its business on the Premises.

This Lease is subject to all applicable local ordinances and regulations.

Tennessee Specific: Landlord shall provide Tenant with a three-day notice to pay rent or quit, pursuant to Tenn. Code Ann. § 29-18-115, prior to commencing any eviction proceedings for non-payment of rent.

Tennessee Specific: Lead-Based Paint Disclosure (if applicable) If the building was constructed prior to 1978, a lead-based paint disclosure is attached hereto and incorporated herein.

25. Remedies and Waiver of Jury Trial

Option A: Waiver of Jury Trial

Each party waives its right to a jury trial in any action arising out of or relating to this Lease.

All remedies available to Landlord are cumulative and not exclusive.

26. Additional Provisions

Option A: Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to force majeure events.

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

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

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

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

Option A: Attorney Fees

In the event of any litigation arising out of or relating to this Lease, the prevailing party shall be entitled to recover its reasonable attorney fees and costs.

This Lease may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

27. Tennessee Specific Provisions

Self-Help Eviction: Landlord is allowed to utilize self-help eviction methods in Tennessee only if the lease specifically provides for it and can do so peaceably.

Local Property Taxes: Tenant is responsible for filing and paying personal property taxes to [Specific County Assessor], as applicable.

Build-out/Improvement Permitting: Tenant acknowledges responsibility for securing all required permits and approvals for any build-out or improvements.

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

Landlord:

____________________________

[Landlord Name]

Tenant:

____________________________

[Tenant Name]

Guarantor (If Applicable):

____________________________

[Guarantor Name/Company Name]