Tennessee retail lease agreement template

Tennessee Retail Lease Agreement

This TENNESSEE RETAIL LEASE AGREEMENT (this "Lease") is made and effective as of this [Date of Agreement] day of [Month], [Year], by and between [Landlord Full Legal Name] ("Landlord"), whose address is [Landlord Address], and [Tenant Full Legal Name] ("Tenant"), whose address is [Tenant Address]. If either party is an entity, provide entity type: Landlord: [Landlord Entity Type], Tenant: [Tenant Entity Type].

1. Premises

Landlord leases to Tenant and Tenant leases from Landlord the premises (the "Premises") located at [Property Address], County of [County], Tennessee, with Parcel Identification Number [Parcel ID].

A. Site Plan/Floor Plan: See attached Exhibit A, which depicts the Premises, including square footage (approximately [Square Footage] square feet), unit number [Unit Number], frontage, location within the building/center, and configuration ([Single-tenant/Strip/Shopping Center]).

B. Shared Amenities: Tenant shall have the right to use the following shared amenities: [Signage/Parking Spaces/Loading Docks/Restrooms/Storage. Specify number of parking spaces, size/location of signage etc.].

C. Common Areas: Landlord reserves the right to make reasonable changes to the common areas.

2. Use

A. Permitted Use: The Premises shall be used solely for the retail sale of [Type of Goods/Services], and for no other purpose. Tenant shall operate the Premises during the hours of [Hours of Operation].

B. Prohibited Uses: Tenant shall not use the Premises for any non-retail purpose, nor shall Tenant store or use any hazardous materials on the Premises. Tenant shall not operate a use that violates local zoning or Tennessee retail regulations.

C. Alterations: Tenant shall not make any alterations to the use of the Premises, sublet the Premises, or assign this Lease without Landlord's prior written consent.

D. Compliance: Tenant shall comply with all applicable municipal zoning, signage, business license, ADA, health department, and fire/building codes for retail operations in Tennessee.

3. Term

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

B. Renewal Option:

Option 1: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each, provided that Tenant gives Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the then-current term.

Option 2: No renewal option.

C. Holdover: If Tenant remains in possession of the Premises after the expiration or termination of this Lease, such occupancy shall be deemed a month-to-month tenancy, subject to all the terms and conditions of this Lease, except that the base rent shall be [Percentage]% of the then-current base rent.

D. Early Termination:

Option 1: This Lease may be terminated early by Tenant under the following conditions: [Eminent Domain/Casualty/Regulatory Changes. Specify details of termination conditions and any penalties].

Option 2: No early termination.

4. Rent

A. Base Rent: The base rent shall be [Dollar Amount] per month, payable in advance on the [Day] day of each month.

B. Rent Escalation:

Option 1: The base rent shall increase by [Percentage]% per year, commencing on [Date].

Option 2: The base rent shall be adjusted annually based on the Consumer Price Index (CPI), as published by the U.S. Department of Labor, Bureau of Labor Statistics.

Option 3: No rent escalation.

C. Percentage Rent: In addition to base rent, Tenant shall pay percentage rent equal to [Percentage]% of gross sales exceeding [Dollar Amount] per year.

D. Payment: Rent shall be paid to Landlord at [Address].

E. Late Payment: A late fee of [Dollar Amount] shall be charged for any rent payment received more than [Number] days after the due date. A returned check fee of [Dollar Amount] will be charged.

F. Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], to be used in accordance with Tennessee law.

5. Taxes

Tenant shall be responsible for the payment of all applicable state, county, and local sales or business taxes or surcharges, including privilege and occupancy taxes specific to Tennessee retail operations.

6. Utilities and CAM

A. Utilities: Tenant shall be responsible for the following utilities: [Electricity/Water/Sewer/HVAC/Trash/Internet/Pest Control].

B. Common Area Maintenance (CAM): Tenant shall pay its pro rata share of CAM charges, which shall include [List of CAM Expenses]. Landlord shall provide Tenant with an annual accounting of CAM expenses.

7. Tenant Improvements

A. Allowance: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount].

B. Approval: All renovations or interior build-out must be approved by Landlord and must comply with Tennessee building code.

C. Ownership: Improvements made by Tenant shall become the property of Landlord at the end of the Lease term, unless otherwise agreed in writing.

D. Restoration: Tenant shall restore the Premises to its original condition at the end of the Lease term, reasonable wear and tear excepted, or remove branding/trade fixtures as specified in a separate agreement.

8. Maintenance and Repairs

A. Landlord's Responsibilities: Landlord shall be responsible for the repair and maintenance of the structural elements of the building, roof, exterior, and common areas.

B. Tenant's Responsibilities: Tenant shall be responsible for the repair and maintenance of the interior of the Premises, non-structural elements, fixtures, and retail-specific equipment.

C. Notice: Tenant shall promptly notify Landlord of any needed repairs.

9. Access

Landlord shall have the right to access the Premises for inspection, emergency repairs, or showing to prospective tenants, upon reasonable notice to Tenant, except in cases of emergency.

10. Insurance

A. Tenant's Insurance: Tenant shall maintain comprehensive general liability insurance with a minimum coverage of [Dollar Amount], property casualty insurance for fixtures and inventory, and business interruption insurance. Tenant shall provide proof of insurance to Landlord. Tenant shall waive subrogation.

B. Landlord's Insurance: Landlord shall maintain insurance on the building.

11. Casualty

In the event of a fire, flood, tornado, or other casualty, this Lease may be terminated or the Premises may be repaired, as determined by Landlord, with reasonable consideration for Tenant's business operations. Abatement of rent will be determined by Tennessee law.

12. Environmental Compliance

Tenant shall comply with all state and local environmental laws, including those relating to hazardous materials and retail-specific disposal requirements.

13. Signage

Tenant shall have the right to display its trade name and branding on signage, subject to Landlord's approval and compliance with local signage ordinances and zoning regulations.

14. Parking

Tenant shall have the right to use [Number] parking spaces for customers and employees. Delivery and loading hours shall be [Hours]. Snow/ice removal shall be the responsibility of [Landlord/Tenant].

15. Exclusive Use/Co-Tenancy

A. Exclusive Use: Landlord shall not lease space to any other tenant engaged in the business of [Type of Business].

Option 1: Exclusive Use Granted.

Option 2: No Exclusive Use Granted.

B. Co-Tenancy: If [Anchor Tenant Name] vacates the property, Tenant shall have the right to [Terminate Lease/Reduce Rent/Negotiate New Terms].

Option 1: Co-Tenancy Clause Included.

Option 2: No Co-Tenancy Clause Included.

16. Operating Hours

Tenant shall operate the Premises during the hours of [Hours of Operation], except for [Blackout Dates/Holidays].

17. Security

The Premises shall be equipped with [Video Surveillance/Alarm System/Access Control]. Costs associated with these systems shall be allocated to [Landlord/Tenant].

18. Default

A. Tenant Default: If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall provide written notice of default and Tenant shall have [Number] days to cure the default, as required by Tennessee law.

B. Landlord Remedies: Upon Tenant's default, Landlord may re-enter the Premises, evict Tenant, and recover all costs and damages, including attorney's fees.

19. Move-In/Move-Out

Tenant shall complete a move-in checklist upon taking possession of the Premises. Upon move-out, Tenant shall remove all personal property and restore the Premises to its original condition, reasonable wear and tear excepted.

20. Security Deposit Return

Upon termination of this Lease, Landlord shall return the security deposit to Tenant, less any deductions for damages or unpaid rent, in accordance with Tennessee law.

21. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through negotiation and mediation. If mediation fails, the parties may pursue arbitration or litigation. This Lease shall be governed by the laws of the State of Tennessee. Venue shall be [County] County, Tennessee.

22. Miscellaneous

A. Entire Agreement: This Lease constitutes the entire agreement between the parties.

B. Amendment: This Lease may be amended only in writing, signed by both parties.

C. Notices: All notices shall be delivered by [Email/Certified Mail/Other as permitted by Tennessee Law].

D. ADA Compliance: Tenant shall comply with the Americans with Disabilities Act.

E. Force Majeure: Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to events beyond its reasonable control.

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

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

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[Landlord Full Legal Name]

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[Tenant Full Legal Name]