Texas retail lease agreement template

Texas Retail Lease Agreement

This Texas Retail Lease Agreement (this "Lease") is made and effective as of this [Date], by and between [Landlord Full Legal Name], a [Landlord Entity Type] whose address is [Landlord Mailing Address] ("Landlord"), and [Tenant Full Legal Name], a [Tenant Entity Type], whose address is [Tenant Mailing Address] ("Tenant"). Landlord's phone number is [Landlord Phone Number] and email is [Landlord Email]. Tenant's phone number is [Tenant Phone Number] and email is [Tenant Email]. Registered agent (if applicable): [Registered Agent Name], address: [Registered Agent Address].

Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises (the "Premises") located at [Physical Address], Suite/Unit Number [Suite/Unit Number], consisting of approximately [Total Leasable Square Footage] square feet of leasable area. The Premises is further described as [Building and Lot Legal Description] per Texas property records and is of the type [Type of Premises: inline store, pad site, end cap, free-standing retail, etc.].

Boundaries: [Describe Boundaries of Premises]

Ingress and Egress: [Describe Ingress and Egress Rights]

Loading Dock/Receiving Access: [Describe Loading Dock/Receiving Access]

Parking: [Describe Designated and Shared Parking Spaces, Counts, and ADA Compliance]

Signage Rights: [Describe Signage Rights (Exclusive/Non-Exclusive)]

Building Amenities: [Describe relevant building amenities, e.g., exterior display windows, storage rooms, outdoor seating, drive-thru lanes, grease traps, or service corridors]

Permitted Use

The Premises shall be used solely for the purpose of [Specific Retail Business Type], including the sale of [List Allowed Product Categories].

Prohibited Uses: The Tenant shall not use the Premises for any of the following purposes: [List Prohibited Uses, e.g., adult entertainment, cannabis, liquor sales if not permitted, or any business restricted by shopping center covenants].

Exclusive Use (Option A): Landlord agrees not to lease any other space in the [Shopping Center Name/Property] to a business that directly competes with Tenant's primary business of [Tenant's Primary Business]. This exclusive use does not apply to incidental sales of competing products by other tenants whose primary business is not the same as Tenant's.

Exclusive Use (Option B): No Exclusive Use Granted.

Compliance with Laws

Tenant shall comply with all applicable Texas statutes, local city/town zoning ordinances, county regulations, building and health codes, environmental regulations (including Texas Commission on Environmental Quality and local grease/oil management), and the Americans with Disabilities Act as applied in Texas retail settings.

Lease Term

The term of this Lease shall commence on [Commencement Date] (the "Commencement Date") and shall expire on [Expiration Date] (the "Expiration Date"), unless sooner terminated as provided herein.

Renewal Option (Option A): Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term] each. To exercise this option, Tenant must give Landlord written notice at least [Number] months prior to the expiration of the then-current term. The rental rate for each renewal term shall be [Describe Rental Adjustment, e.g., Fair Market Value, CPI increase, fixed increase].

Renewal Option (Option B): No Renewal Option.

Holding Over: Any holding over by Tenant after the Expiration Date shall be construed as a month-to-month tenancy, subject to all the terms and conditions of this Lease, except that the monthly rental shall be [Percentage]% of the monthly rental rate in effect during the last month of the Lease term.

Early Termination by Tenant (Option A): Tenant shall have the right to terminate this Lease early if [Describe Triggering Event, e.g., casualty, condemnation, or failure of anchor tenants] occurs, provided Tenant gives Landlord [Number] days' written notice.

Early Termination by Tenant (Option B): No Early Termination Right for Tenant.

Rent

Tenant shall pay Landlord base rent at a rate of [Dollar Amount] per square foot per year, payable in monthly installments of [Dollar Amount], in advance, on the [Day] day of each month, commencing on the Commencement Date.

Escalation: The base rent shall increase [Describe Escalation Schedule, e.g., CPI increase, fixed increase] beginning on [Date].

Abatement (Option A): Tenant shall be entitled to a rent abatement period of [Number] months, commencing on the Commencement Date.

Abatement (Option B): No Rent Abatement.

Payment Method: Rent shall be paid by [Check, Wire, ACH] to [Payment Address/Bank Account Information].

Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount]. The security deposit shall be held by Landlord as security for the performance of Tenant's obligations under this Lease. The security deposit shall be returned to Tenant within [Number] days after the Expiration Date, less any deductions for damages to the Premises or unpaid rent, in accordance with Texas law.

Triple Net (NNN) Charges

In addition to base rent, Tenant shall pay its pro-rata share of property taxes, property insurance, and common area maintenance (CAM) costs (collectively, "NNN Charges").

Property Taxes: Tenant's pro-rata share of property taxes shall be [Percentage]% of the total property taxes assessed against the [Shopping Center Name/Property]. Reference the taxing authority in the appropriate county in Texas for real property tax rates.

Property Insurance: Tenant's pro-rata share of property insurance shall be [Percentage]% of the total property insurance premium for the [Shopping Center Name/Property].

Common Area Maintenance (CAM): Tenant's pro-rata share of CAM costs shall be [Percentage]% of the total CAM costs for the [Shopping Center Name/Property]. CAM costs shall include, but not be limited to, landscaping, parking lot maintenance, security, and utilities for common areas.

Reconciliation: Landlord shall provide Tenant with an annual reconciliation of NNN Charges within [Number] days after the end of each calendar year.

Utilities

Tenant shall be responsible for the payment of all utility services to the Premises, including electricity, gas, water, sewer, trash, pest control, and janitorial services.

Metering: Utilities shall be [Separately Metered/Allocated Based on Formula]. If utilities are allocated, the allocation formula shall be [Describe Allocation Formula].

Tenant Finish-Out

Tenant shall be responsible for all tenant finish-out work necessary to prepare the Premises for its intended use.

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

TI Allowance (Option B): No Tenant Improvement Allowance.

Plans and Specifications: All plans and specifications for tenant finish-out work shall be subject to Landlord's prior written approval.

Permits: Tenant shall be responsible for obtaining all necessary permits for tenant finish-out work.

Contractors: Tenant shall use [Mandated Contractors/Landlord-Approved Contractors] for tenant finish-out work.

Lien Laws: Tenant shall comply with all applicable Texas lien laws.

Maintenance and Repair

Landlord's Responsibilities: Landlord shall be responsible for maintaining and repairing the roof, structure, and building systems of the [Shopping Center Name/Property].

Tenant's Responsibilities: Tenant shall be responsible for maintaining and repairing the interior of the Premises, storefront glass, HVAC (including repair, replacement, and scheduled maintenance, and end-of-term condition), plumbing, and fixtures.

Operational Requirements

Hours of Operation: Tenant shall maintain the following hours of operation: [Specify Days and Hours].

Open for Business: Tenant shall remain open for business during the required hours of operation.

Staffing/Security: Tenant shall maintain adequate staffing and security measures to ensure the safety and security of the Premises and its customers.

Noise/Odor Control: Tenant shall control noise and odors emanating from the Premises so as not to disturb other tenants or occupants of the [Shopping Center Name/Property].

Customer Access/Safety: Tenant shall maintain safe and unobstructed access for customers to the Premises.

Landscaping/Cleanliness: Tenant shall maintain the Premises in a clean and orderly condition.

Signage

Tenant shall be permitted to install signage in the following location(s): [Specify Location(s)].

Size/Content Restrictions: Signage shall comply with the following size and content restrictions: [Specify Size and Content Restrictions].

Compliance: Signage shall comply with all applicable city/HOA requirements.

Illumination: Signage shall be [Illuminated/Non-Illuminated].

Approval: All signage shall be subject to Landlord's prior written approval.

Parking and Common Area Use

Parking Assignments: [Specify Customer/Employee Parking Assignments].

Delivery/Service Vehicles: [Specify Delivery and Service Vehicle Protocols].

Restrictions on Competitive Temporary Uses: [Specify Restrictions on Competitive Temporary Uses, e.g., kiosks or parking lot events].

ADA Parking: [Specify ADA Parking Compliance].

Holiday/Special Event Procedures: [Specify Holiday/Special Event Procedures].

Subleasing and Assignment

Tenant shall not sublease the Premises or assign this Lease without Landlord's prior written consent, which consent shall not be unreasonably withheld. Landlord's consent may be conditioned upon review of the proposed subtenant's or assignee's retail concept, financials, and compliance with exclusive use or prohibited uses.

Insurance

Tenant shall maintain the following insurance coverage: property insurance, commercial general liability insurance, and business interruption insurance, with landlord as additional insured, with Texas-admitted insurers, confirmation of adequate policy limits, certificates of insurance, and rights to approve coverage levels in accordance with local risk standards.

Restoration and Surrender

Upon the Expiration Date or earlier termination of this Lease, Tenant shall surrender the Premises to Landlord in "broom clean" and rentable condition, ordinary wear and tear excepted. Tenant shall remove all trade fixtures and repair any damage caused by such removal.

Default

If Tenant fails to pay rent or other charges when due, or if Tenant breaches any other material provision of this Lease, Landlord may, after providing written notice and an opportunity to cure as required by Texas law, terminate this Lease and pursue all available remedies, including eviction and damages. Landlord may lockout Tenant pursuant to Texas lockout laws for commercial tenancies. Tenant waives all rights to homestead and exemption, to the extent allowed by Texas law.

Indemnification

Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, damages, and expenses arising out of Tenant's use of the Premises, including, without limitation, claims for personal injury, property damage, and environmental contamination.

Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to any cause beyond its reasonable control, including, without limitation, acts of God, war, terrorism, strikes, and governmental regulations.

Casualty and Condemnation

If the Premises are damaged by fire or other casualty, this Lease shall terminate or be restored as provided by Texas Property Code. If the Premises are taken by eminent domain, this Lease shall terminate or be adjusted as provided by Texas Property Code.

Governing Law and Venue

This Lease shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any action arising out of this Lease shall be in [County Name] County, Texas.

Landlord's Access

Landlord shall have the right to access the Premises upon [Number] hours' notice to inspect the Premises, make necessary repairs, or show the Premises to prospective tenants or purchasers, except in cases of emergency.

Notices

All notices required or permitted under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by reputable overnight courier service, addressed to the parties at their respective addresses set forth above. All notices must comply with Texas statutory notice requirements, including for security deposit matters and legal process service.

Personal Property and Fixtures

All personal property, fixtures, improvements, and trade fixtures installed by Tenant in the Premises shall remain the property of Tenant, subject to the terms of this Lease and Texas law regarding realty and business property.

Shopping Center Provisions

If the Premises are located in a shopping center or retail strip, this Lease shall be subject to the terms and conditions of the Landlord's master operating agreement, shopping center rules and regulations, reciprocal easement agreements, and any tenant association bylaws.

Amendments

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

Counterparts

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.

Broker Disclosure

[Disclose Broker Information and Commission Agreements, if any]

Restaurant/Food Service Provisions (if applicable)

Tenant shall comply with all applicable environmental, health, and food safety regulations, including those of the Texas Department of State Health Services or local health authority. Tenant shall also comply with all grease trap and waste management requirements, pest control requirements, and fire safety requirements (including Fire Marshal requirements for alarms, extinguishers, and sprinkler systems).

Special Provisions

[Include Special Provisions Specific to the Retail Use, e.g., outdoor displays, seasonal sales, sidewalk cafes, or drive-through, provided these comply with local permits, city ordinances, and landlord’s site plan.]

Business Licenses and Permits

Tenant shall maintain active business licenses, sales tax permits, and operating registrations as required by the State of Texas and city/county where premises are located, with timely renewal and evidence provided to landlord upon request.

Representations and Warranties

Landlord represents and warrants that it has the authority to lease the Premises, that there are no undisclosed liens on the Premises, and that Landlord is not aware of any latent defects in the Premises.

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

LANDLORD:

[Landlord Full Legal Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

TENANT:

[Tenant Full Legal Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]