Tennessee warehouse lease agreement template

Tennessee Warehouse Lease Agreement

This Tennessee Warehouse Lease Agreement ("Agreement") is made and effective as of [Effective Date], by and between [Landlord Legal Name], a [Landlord Business Structure, e.g., Limited Liability Company], with a principal place of business at [Landlord Address] ("Landlord"), and [Tenant Legal Name], a [Tenant Business Structure, e.g., Corporation], with a principal place of business at [Tenant Address] ("Tenant").

1. Premises

• The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the warehouse space located at [Property Address], further described in the Site Plan attached hereto as Exhibit A.
  • Option A: Total square footage: [Square Footage]; Dimensions: [Dimensions]; Ceiling Height: [Ceiling Height].
  • Option B: Including [Number] loading docks/doors, specific locations indicated on Exhibit A.
  • Option C: Includes existing racking system (as-is condition, see Exhibit B).
  • Option D: Includes office build-out as depicted in Exhibit C.
  • Option E: HVAC in [Area], non-HVAC in [Area].
• Tenant shall have exclusive use of the following parking/yard areas: [Description of Exclusive Areas].
• Tenant shall have the right to use the following shared/common areas: [Description of Shared/Common Areas, e.g., driveways, truck courts].

2. Use of Premises

• Tenant shall use the Premises solely for warehouse, storage, and related distribution activities consistent with Tenant’s operations.
  • Option A: Permitted use includes [Specific Tenant Operations, e.g., cross-docking].
  • Option B: Permitted use includes [Specific Tenant Operations, e.g., long-term pallet storage].
• The Tenant’s use of the Premises shall comply with all applicable Tennessee zoning, fire codes, and business licensing requirements.
• Manufacturing is [Permitted/Prohibited] unless approved by Landlord and permitted by applicable authorities.
• Handling of hazardous materials is [Permitted/Prohibited] unless approved by Landlord and compliant with all applicable Tennessee and federal laws. Tenant shall provide a list of proposed Hazardous Materials and quantities to Landlord for approval.

3. Compliance with Laws

• Tenant shall comply with all applicable Tennessee and local regulations for warehouse operations.
  • Option A: Including codes from the Tennessee State Fire Marshal.
  • Option B: Including local fire department regulations.
  • Option C: Including health and safety regulations.
  • Option D: Including stormwater (MS4) rules and any environmental ordinances.
  • Option E: Tenant is aware of the existing environmental conditions [Description of Existing Conditions, e.g., floor drains] and shall maintain them in accordance with applicable law.

4. Lease Term

• The Lease Term shall be for a period of [Number] years, commencing on [Commencement Date] and expiring on [Expiration Date].
  • Option A: Tenant shall have the right to renew this Lease for [Number] additional term(s) of [Number] years each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the Expiration Date.
  • Option B: Landlord shall have the right of first refusal on any renewal options, with tenant required to solicit/present any offer for a further term or expansion of the Premises.
• Early Termination:
  • Option A: Tenant shall have the right to terminate this Lease early by providing [Number] days written notice to Landlord and paying a termination fee of [Dollar Amount].
  • Option B: If Premises becomes untenantable by any casualty loss, either party may terminate this agreement.

5. Rent

• The initial monthly rent shall be [Dollar Amount], payable in advance on the [Day] of each month.
• Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], to be held in escrow in accordance with Tennessee law.
  • Option A: Security deposit will be returned to Tenant within 30 days following the end of the lease term, less any deductions for damages.
  • Option B: Security deposit will be held in a non-interest bearing account.
• Annual Rent Escalation:
  • Option A: The rent shall increase by [Percentage]% per year.
  • Option B: The rent shall increase based on the Consumer Price Index (CPI).
• Late Fees: A late fee of [Dollar Amount] shall be charged for any rent payments received more than [Number] days after the due date.
• Returned Check Fee: A fee of [Dollar Amount] shall be charged for any returned checks.

6. Property Taxes and Sales Tax

• Tenant shall be responsible for its pro rata share of property taxes as determined by Landlord.
  • Option A: Landlord and Tenant agree to cooperate in any property tax assessment disputes.
• Tenant shall be responsible for all applicable Tennessee sales or business use taxes related to its activities on the Premises.

7. Operating Expenses (NNN/CAM)

• Tenant shall be responsible for its pro rata share of building operating expenses, including:
  • Option A: Utility charges (water, electricity, natural gas, telecommunications).
  • Option B: Repairs and maintenance (HVAC, roof, structural, non-structural, dock doors, lighting, pest control).
  • Option C: Procedures for capital or landlord-required improvements.

8. Tenant Improvements and Alterations

• Tenant shall not make any alterations or improvements to the Premises without Landlord’s prior written consent.
  • Option A: All alterations must be performed by licensed Tennessee contractors.
  • Option B: Tenant shall provide Landlord with lien waivers from all contractors.
  • Option C: Tenant shall restore the Premises to its original condition at the end of the Lease Term, including removal of racks and warehouse-specific fixtures.

9. Maintenance and Repairs

• Tenant shall be responsible for day-to-day maintenance of the Premises.
  • Option A: Including operational cleaning, trash removal, and snow removal.
  • Option B: Tenant shall be responsible for equipment maintenance (forklifts, conveyors, etc.).
• Landlord is responsible for periodic parking lot resurfacing, with tenant’s proportionate share to be included in annual CAM.
• Tenant shall comply with all Tennessee workplace safety requirements, including TOSHA.

10. Insurance

• Landlord shall maintain property insurance on the structure.
• Tenant shall maintain liability insurance coverage with Tennessee-specific limits of [Dollar Amount].
  • Option A: Tenant shall provide Landlord with a waiver of subrogation endorsement.
  • Option B: Landlord shall be named as an additional insured on Tenant’s policy.

11. Environmental Matters

• Tenant shall not store or use any hazardous waste or regulated substances on the Premises without Landlord’s prior written consent.
  • Option A: Tenant shall comply with all applicable Tennessee and federal environmental laws, including hazardous materials reporting.
  • Option B: Tenant shall indemnify Landlord against any environmental liabilities arising from Tenant’s use of the Premises.

12. Casualty and Disaster Recovery

• In the event of property damage or casualty loss, the Landlord shall restore the Premises in a timely manner.
  • Option A: Rent shall be abated during the period of restoration, as determined by Tennessee legal standards.
  • Option B: Each party is responsible for communicating to the other any event constituting a casualty loss or environmental incident.

13. Landlord’s Entry

Landlord shall have the right to enter the Premises for inspection and repair purposes, with reasonable advance notice to Tenant, except in emergencies, in accordance with Tennessee law.

14. Restrictions on Use

• Tenant shall not use the Premises in a manner that creates excessive noise, odors, or nuisance.
  • Option A: Tenant shall have 24/7 access to the Premises.

15. Subleasing and Assignment

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

16. Equipment and Utilities

• Tenant shall be responsible for the installation and maintenance of its own equipment.
  • Option A: Utilities shall be separately metered to the Tenant.
  • Option B: Tenant shall have the right to contract with internet/data service providers.

17. Signage

Tenant shall have the right to install signage on the Premises, subject to Landlord’s approval and compliance with Tennessee sign ordinances and property association standards.

18. Default and Remedies

• In the event of a breach of this Lease by either party, the non-breaching party shall have all remedies available under Tennessee law.
  • Option A: Notice and cure periods shall be governed by Tennessee law.
  • Option B: The prevailing party in any legal action shall be entitled to attorney’s fees.

19. Move-In and Move-Out

• Prior to move-in, Landlord and Tenant shall conduct a pre-move-in inspection and complete a condition report.
• Upon move-out, Tenant shall surrender the Premises in a clean and good condition, removing all of Tenant’s property.
  • Option A: Tenant shall remove all racking and warehouse-specific fixtures.

20. Property-Specific Rules

Tenant shall comply with the following property-specific rules: [List Specific Rules, e.g., shipping/receiving hours, truck access requirements].

21. Dispute Resolution

• Any disputes arising under this Lease shall be resolved through negotiation, mediation, or litigation, as agreed upon by the parties.
  • Option A: Any litigation shall be venued in [County Name] County, Tennessee.

22. Legal Compliance Representations

Landlord represents that the Premises is properly zoned and permitted for warehouse and distribution activities under Tennessee law.

23. Tennessee-Specific Matters

Tenant acknowledges that it may be subject to local option sales and use tax.

24. Notices

All notices under this Lease shall be in writing and delivered by mail, email, or personal delivery to the addresses specified above, in accordance with Tennessee statute.

25. Industrial Association Requirements (If Applicable)

If the Property is part of a multi-tenant logistics or industrial park, Tenant shall comply with all applicable industrial association requirements.

26. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

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

____________________________

[Landlord Legal Name]

By: ____________________________

[Landlord Representative Name]

[Landlord Representative Title]

____________________________

[Tenant Legal Name]

By: ____________________________

[Tenant Representative Name]

[Tenant Representative Title]

Exhibit A: Site Plan

Exhibit B: Racking System Description (If Applicable)

Exhibit C: Office Build-Out Description (If Applicable)