Texas commercial lease agreement template

Texas Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into as of this [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."

Landlord is a [Landlord Entity Type, e.g., Individual, Corporation, LLC]

Tenant is a [Tenant Entity Type, e.g., Individual, Corporation, LLC]

Premises:

Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises located at [Street Address], Suite/Unit [Suite/Unit Number], City of [City], County of [County], State of Texas, (the "Premises"), which is further described as: [Legal Description of Premises]. The Premises consists of approximately [Square Footage] square feet.

Option B: As shown on Exhibit A attached hereto, the leased premises consists of the space outlined in red. The parties agree that the total rentable square footage of the Leased Premises is [Square Footage] square feet.

Common Areas: Tenant shall have the non-exclusive right to use the common areas of the building, including [List of Common Areas, e.g., lobbies, hallways, restrooms, parking areas], subject to Landlord's reasonable rules and regulations.

Parking: Tenant shall have the right to use [Number] parking spaces, designated as [Parking Space Designation], as part of the Premises.

Use of Premises:

Option A: Tenant shall use the Premises solely for the purpose of [Permitted Use, e.g., retail sales, office space, restaurant].

Option B: Tenant shall use the Premises for [Permitted Use, e.g., retail sales, office space, restaurant] and for no other purpose without the prior written consent of Landlord.

Prohibited Uses: Tenant shall not use the Premises for any unlawful purpose or in any manner that would violate any applicable law, ordinance, or regulation, including but not limited to [List of Prohibited Uses, e.g., storage of hazardous materials, adult entertainment, residential use].

Exclusive Use: Landlord grants Tenant the exclusive right to operate a [Type of Business] business within the building/shopping center. Landlord agrees not to lease any other space in the building/shopping center to a business that directly competes with Tenant's business, described as [Detailed description of the exclusive use activity]. This exclusive use does not include [Exceptions to the exclusive use, e.g., incidental sales, existing tenants].

Lease Term:

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

Option B: The lease term begins upon the earlier of (a) Tenant opening for business in the Premises or (b) [Date]. The lease term ends [Number] years from the commencement date.

Renewal Option:

Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term, e.g., 5 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. Rent during the renewal term shall be [Rent Amount/Method of Calculation, e.g., fair market value, CPI adjustment].

Option B: There shall be no option to renew this lease.

Automatic Renewal: This lease shall NOT automatically renew.

Rent:

Option A: Tenant shall pay Landlord rent in the amount of [Rent Amount] per month, payable in advance on the [Day] day of each month, commencing on [Date].

Option B: Tenant will pay Landlord rent on the first day of each month beginning [Date]. Rent payments will be calculated at a rate of [Dollars per Square Foot] per square foot.

Payment Method: Rent shall be paid by [Payment Method, e.g., check, electronic transfer] to [Payment Address/Account Information].

Late Charges: If rent is not received within [Number] days of the due date, a late charge of [Late Charge Amount/Percentage] shall be assessed.

Escalation Clause: The monthly rent shall increase annually by [Percentage]% beginning on [Date].

CPI Adjustment: The rent shall be adjusted annually based on the Consumer Price Index (CPI) for [City, State]. The adjustment will be effective [Date] each year. The formula for the adjustment is: [Formula for CPI adjustment].

Security Deposit:

Option A: Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount], to be held by Landlord as security for the performance of Tenant's obligations under this Lease.

Option B: No security deposit will be required.

Permitted Use: Landlord may use the security deposit to cover any damages to the Premises caused by Tenant, unpaid rent, or other breaches of this Lease.

Interest: Landlord is/is not [Choose one] required to pay interest on the security deposit as required by Texas law.

Return of Deposit: The security deposit, less any deductions for damages or unpaid rent, shall be returned to Tenant within [Number] days after the termination of this Lease and Tenant's surrender of the Premises.

Operating Expenses:

Option A: Triple Net (NNN) Lease: Tenant shall be responsible for paying its pro rata share of all operating expenses of the building, including property taxes, insurance, and common area maintenance (CAM) fees. Tenant's pro rata share is [Percentage]% of the total operating expenses.

Option B: Gross Lease: Landlord shall be responsible for paying all operating expenses of the building, including property taxes, insurance, and common area maintenance (CAM) fees.

Option C: Modified Gross Lease: Tenant shall pay a base rent, and Landlord shall pay for property taxes and insurance. Tenant shall be responsible for utilities and common area maintenance (CAM) fees, capped at [Amount] per year.

Property Taxes: Landlord/Tenant [Choose One] is responsible for paying all real property taxes assessed against the Premises and the property of which the Premises is a part.

Insurance: Landlord/Tenant [Choose One] is responsible for maintaining insurance on the property.

Common Area Maintenance (CAM): Tenant shall pay for its pro rata share of CAM. CAM charges include [List of CAM Expenses].

Utilities: Tenant is responsible for paying for all utilities used at the property, including but not limited to water, gas, electricity, and sewer.

Tenant Obligations:

Maintenance and Repairs: Tenant shall maintain the Premises in good condition and repair, except for those repairs that are the responsibility of Landlord as set forth herein. Tenant is responsible for [List of Tenant's Maintenance Responsibilities].

Alterations: Tenant shall not make any alterations or improvements to the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld. All alterations and improvements shall become the property of Landlord upon termination of this Lease, unless otherwise agreed in writing.

Restoration: Upon termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing.

Landlord Obligations:

Maintenance: Landlord shall maintain the structural elements of the building, including the roof, exterior walls, and foundation, in good condition and repair.

Major Systems: Landlord shall maintain the major building systems, including the HVAC, plumbing, and electrical systems, in good working order.

Insurance:

Tenant's Insurance: Tenant shall maintain commercial general liability insurance with a minimum limit of [Insurance Amount] per occurrence, and property insurance covering Tenant's personal property and improvements in the Premises.

Landlord's Insurance: Landlord shall maintain property insurance covering the building and the Premises.

Certificate of Insurance: Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage.

Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant each waive any rights of subrogation against the other.

Indemnification:

Tenant's Indemnification: Tenant shall indemnify and hold harmless Landlord from and against any and all claims, damages, liabilities, costs, and expenses (including attorney's fees) arising from Tenant's use of the Premises, Tenant's negligence, or Tenant's breach of this Lease.

Landlord's Indemnification: Landlord shall indemnify and hold harmless Tenant from and against any and all claims, damages, liabilities, costs, and expenses (including attorney's fees) arising from Landlord's negligence or Landlord's breach of this Lease.

Compliance with Laws:

General Compliance: Tenant shall comply with all applicable laws, ordinances, and regulations, including but not limited to zoning regulations and building codes.

ADA Compliance: Responsibility for ADA compliance costs related to alterations/improvements is the Tenant's/Landlord's [Choose One].

Assignment and Subleasing:

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

Option B: Tenant shall not assign this Lease or sublease the Premises.

Recapture Rights: Landlord shall have the right to recapture the Premises in the event Tenant requests to assign or sublet.

Default:

Tenant Default: The following shall constitute events of default by Tenant: failure to pay rent when due, abandonment of the Premises, breach of any other material provision of this Lease.

Landlord Default: The following shall constitute events of default by Landlord: failure to maintain the Premises as required herein, breach of any other material provision of this Lease.

Notice and Cure: Upon the occurrence of an event of default, the non-defaulting party shall give the defaulting party written notice of the default and a reasonable opportunity to cure the default. The cure period for monetary defaults (failure to pay rent) is [Number] days. The cure period for non-monetary defaults is [Number] days.

Remedies: Upon the occurrence of an event of default that is not cured within the applicable cure period, the non-defaulting party shall have all remedies available at law or in equity, including but not limited to termination of this Lease, eviction, and recovery of damages.

Texas Specific Notice: Landlord shall provide tenant with notice to vacate as required under Texas Property Code Section 24.005.

Lockout Provision: Landlord shall not be entitled to automatic lockout. Landlord must pursue remedies according to Texas Property Code.

Improvements and Build-Outs:

Option A: Tenant shall be responsible for all improvements and build-outs to the Premises, subject to Landlord's approval of the plans and specifications.

Option B: Landlord will complete the build-out of the premises according to the attached Exhibit [Exhibit Number].

Ownership: All improvements and build-outs shall become the property of Landlord upon termination of this Lease, unless otherwise agreed in writing.

Signage:

Signage Approval: Tenant shall obtain Landlord's prior written approval of any signage to be installed on the Premises.

Compliance with Regulations: All signage shall comply with all applicable laws, ordinances, and regulations.

Representations and Warranties:

Landlord's Warranty: Landlord warrants that it has the right to lease the Premises and that Tenant's quiet enjoyment of the Premises will not be disturbed.

Tenant's Warranty: Tenant warrants that it has the authority to enter into this Lease.

Casualty and Condemnation:

Casualty: If the Premises are damaged by fire or other casualty, Landlord shall repair the Premises, provided that Landlord's obligation to repair shall be limited to the extent of insurance proceeds received. If the Premises are rendered untenantable, rent shall abate until the Premises are restored. If the damage is substantial, either party may terminate this Lease.

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

Surrender and Holding Over:

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

Holding Over: If Tenant holds over after the expiration of this Lease, Tenant shall be deemed a tenant at will, and rent shall be payable at [Percentage]% of the then-current rent.

Access:

Landlord's Access: Landlord shall have the right to enter the Premises for the purpose of inspection, repair, or showing the Premises to prospective tenants or buyers, upon reasonable notice, except in emergencies.

Emergency Access: Landlord may enter the Premises at any time in the event of an emergency.

Lien Rights and Waivers:

Landlord's Lien: Landlord shall have a contractual and statutory lien on Tenant's personal property located on the Premises to secure the payment of rent and other obligations under this Lease. Tenant acknowledges Landlord's Lien and Contractual Landlord's Lien.

Waiver of Subrogation: Landlord and Tenant each waive any rights of subrogation against the other.

Personal Guaranty:

Option A: [Guarantor Name], residing at [Guarantor Address], hereby personally guarantees the performance of Tenant's obligations under this Lease.

Option B: There is no personal guaranty.

Dispute Resolution:

Governing Law: This Lease shall be governed by the laws of the State of Texas.

Venue: Venue for any action arising out of this Lease shall be in [County] County, Texas.

Mediation/Arbitration: Prior to initiating litigation, the parties shall attempt to resolve any dispute through mediation/arbitration [Choose One].

Attorney's Fees: In the event of any dispute arising out of this Lease, the prevailing party shall be entitled to recover its reasonable attorney's fees and costs.

Texas-Specific Requirements:

Notice: All notices required under this Lease shall be given in writing and delivered by certified mail, return receipt requested, to the addresses set forth above.

Smoke Detectors: The premises will be equipped with functioning smoke detectors as required by Texas law.

Right to Repair and Deduct: Tenant may have the right to repair and deduct under Texas Property Code Section 92.056.

Anti-Discrimination: Landlord and Tenant agree to comply with all applicable federal, state, and local anti-discrimination laws.

Environmental Provisions:

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

Reporting: Tenant shall comply with all applicable environmental regulations.

Indemnification: Tenant shall indemnify Landlord from any environmental liabilities arising from Tenant's use of the Premises.

Miscellaneous:

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

Waiver: No waiver of any provision of this Lease shall be effective unless in writing and signed by the party waiving the provision.

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

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

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

Counterparts: This Lease may be executed in counterparts, each of which shall be deemed an original.

Electronic Signatures: Electronic signatures shall be accepted as original signatures.

Optional Clauses:

Exclusivity: Landlord grants Tenant the exclusive right to sell [Specific Products/Services] within the building.

Co-Tenancy: If [Anchor Tenant] vacates the building, Tenant shall have the right to terminate this Lease.

Option to Purchase: Tenant shall have the option to purchase the Premises for [Purchase Price] at any time during the term of this Lease.

Right of First Refusal: Tenant shall have the right of first refusal to purchase the Premises if Landlord receives an offer from a third party.

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

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[Landlord's Signature]

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[Landlord's Printed Name]

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[Tenant's Signature]

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[Tenant's Printed Name]