Utah commercial lease agreement template

Utah Commercial Lease Agreement

This Commercial Lease Agreement (this “Lease”) is made and effective as of this [Date], by and between [Landlord Name], a [Landlord Entity Type, e.g., LLC] with an address at [Landlord Address] (“Landlord”), and [Tenant Name], a [Tenant Entity Type, e.g., Corporation] with an address at [Tenant Address] (“Tenant”).

1. Premises

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises (the “Premises”) located at [Premises Address], consisting of approximately [Square Footage] square feet and identified as [Unit/Suite Number].

The Premises are further described as:

• Option A: The legal description attached hereto as Exhibit A.
• Option B: As depicted in the floor plan attached hereto as Exhibit B.

2. Use of Premises

The Premises shall be used and occupied by Tenant solely for the purpose of: [Intended Use, e.g., retail sales of clothing].

Tenant shall not use the Premises for any unlawful purpose, or in any manner that violates any applicable zoning ordinance, law, rule, or regulation.

Use Restrictions:

• Option A: Tenant shall not conduct the following activities on the Premises: [Prohibited Activities].
• Option B: (Exclusive Use) Landlord agrees not to lease any other space in the Building to a business similar to the Tenant’s [Tenant's Business Type].

3. Term

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

Term Options:

• Option A: (Fixed Term) The term is a fixed term of [Number] years.
• Option B: (Month-to-Month) The term shall be month-to-month, commencing on [Start Date]. Either party may terminate this Lease by providing [Number] days’ written notice to the other party.

Renewal/Extension:

• Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each. To exercise this option, Tenant must provide written notice to Landlord not less than [Number] days prior to the Expiration Date.
• Option B: There shall be no automatic renewal of the lease.

4. Rent

Tenant shall pay to Landlord as rent for the Premises the sum of [Rent Amount] per [Payment Frequency, e.g., month], payable in advance on the [Day] day of each [Payment Frequency, e.g., month] during the Term.

Rent Structure Options:

• Option A: (Fixed Rent) The rent shall remain fixed for the entire Term.
• Option B: (Rent Escalation) The rent shall increase by [Percentage] percent on each [Date].
• Option C: (CPI Adjustment) The 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.

Late Fee: If rent is not received within [Number] days of the due date, Tenant shall pay a late fee of [Late Fee Amount].

Returned Check Fee: Tenant shall pay a fee of [Returned Check Fee] for any check returned for insufficient funds.

5. Security Deposit

Tenant shall deposit with Landlord the sum of [Security Deposit Amount] as a security deposit to secure Tenant’s performance of its obligations under this Lease.

Security Deposit Options:

• Option A: (Security Deposit Required) The security deposit shall be held by Landlord in accordance with Utah law. Landlord may use the security deposit to cover any damages to the Premises caused by Tenant, unpaid rent, or other breaches of this Lease. Landlord shall return the security deposit, less any deductions, to Tenant within [Number] days after the termination of this Lease and Tenant’s surrender of the Premises.
• Option B: (No Security Deposit Required) No security deposit is required under this Lease.

6. Other Required Payments

Tenant shall be responsible for the following utilities and services: [List of Utilities, e.g., electricity, gas, water, sewer, trash removal].

Landlord shall be responsible for the following utilities and services: [List of Landlord Responsibilities, e.g., maintenance of common areas].

Cost Allocation Options:

• Option A: (Gross Lease) Landlord shall pay all operating expenses, including property taxes, insurance, and CAM charges.
• Option B: (Triple Net (NNN) Lease) Tenant shall pay all property taxes, insurance, and CAM charges in addition to the Rent.
• Option C: (Modified Gross Lease) Tenant shall pay its pro-rata share of [Specific Expenses, e.g., property taxes and insurance]. Landlord will pay for all other operating expenses.

7. Maintenance and Repair

Landlord shall be responsible for maintaining and repairing the following: [Landlord Responsibilities, e.g., the roof, structural elements, common areas].

Tenant shall be responsible for maintaining and repairing the following: [Tenant Responsibilities, e.g., interior of the Premises, HVAC system].

Maintenance Responsibility Options:

• Option A: (Landlord Heavy) Landlord is responsible for all major repairs and maintenance including HVAC, roof, and structural elements.
• Option B: (Tenant Heavy) Tenant is responsible for all repairs and maintenance of the premises, including HVAC, plumbing, and electrical systems.

8. Insurance

Tenant shall maintain commercial general liability insurance with a minimum coverage of [Insurance Amount] per occurrence and [Insurance Amount] in the aggregate. Tenant shall provide Landlord with a certificate of insurance evidencing such coverage.

Insurance Options:

• Option A: (Standard Coverage) Tenant shall also maintain property insurance covering Tenant’s personal property and improvements to the Premises.
• Option B: (Additional Insured) Tenant shall name Landlord as an additional insured on its commercial general liability insurance policy.
• Option C: (Waiver of Subrogation) Landlord and Tenant mutually waive any rights of subrogation against each other for any losses covered by their respective insurance policies.

9. Compliance with Laws and Regulations

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

Compliance Options:

• Option A: (ADA Compliance) Tenant is responsible for ensuring that the Premises are compliant with the ADA.
• Option B: (Environmental Compliance) Tenant shall not use or store any hazardous materials on the Premises in violation of any applicable environmental laws.

10. Improvements, Alterations, and Signage

Tenant shall not make any alterations or improvements to the Premises without Landlord’s prior written consent, which shall not be unreasonably withheld.

Improvement Options:

• Option A: (Landlord Approval Required) All improvements shall become the property of Landlord upon termination of this Lease.
• Option B: (Tenant Restoration) Tenant shall restore the Premises to its original condition upon termination of this Lease.
• Option C: (Signage) Tenant may erect signage according to the city ordinances; landlord will approve signage appearance and placement to comply with property standards.

11. Assignment and Subletting

Tenant shall not assign this Lease or sublet the Premises without Landlord’s prior written consent, which may be withheld in Landlord’s sole discretion.

Assignment Options:

• Option A: (Strict Prohibition) No assignment or subletting is permitted.
• Option B: (Landlord Discretion) Landlord’s consent to any assignment or subletting shall not be unreasonably withheld.
• Option C: (Permissive) Assignment permitted with notification only.

12. Entry by Landlord

Landlord shall have the right to enter the Premises at reasonable times and upon [Number] hours’ prior written notice to Tenant for the purpose of inspection, repairs, or showing the Premises to prospective tenants or buyers.

Entry Options:

• Option A: (Emergency Access) Landlord may enter the Premises at any time without notice in the event of an emergency.

13. Representations, Warranties, and Disclosures

Landlord represents and warrants that Landlord has the right to lease the Premises and that the Premises are in compliance with all applicable laws and regulations.

Disclosure Options:

• Option A: (Lead-Based Paint Disclosure) If the Premises were constructed prior to 1978, Landlord shall provide Tenant with a lead-based paint disclosure as required by federal law.
• Option B: (Mold Disclosure) The landlord must disclose mold hazards to the tenant.

14. Default

The occurrence of any of the following events shall constitute a default by Tenant under this Lease:

• Failure to pay rent when due.
• Failure to comply with any other term or condition of this Lease.
• Abandonment of the Premises.

Remedies for Default:

• Option A: (Landlord Remedies) Upon Tenant’s default, Landlord shall have the right to terminate this Lease and re-enter the Premises, and to pursue any other remedies available under Utah law, including unlawful detainer (eviction).
• Option B: (Tenant Remedies) If the Landlord defaults, the Tenant can terminate this agreement.

15. Termination

This Lease may be terminated as follows:

• Upon the expiration of the Term.
• Upon Tenant’s default, as provided herein.
• By mutual written agreement of Landlord and Tenant.

Termination Options:

• Option A: (Early Termination) Tenant may terminate this Lease early by paying a termination fee of [Termination Fee Amount] and providing [Number] days’ written notice to Landlord.
• Option B: (Holdover) If Tenant remains in possession of the Premises after the expiration of the Term without Landlord’s consent, Tenant shall be a holdover tenant and shall pay rent at a rate of [Percentage] percent of the then-current rent.

16. Security and Safety

Tenant shall be responsible for the security of the Premises, including but not limited to alarm systems and key control.

Security Options:

• Option A: (Alarm System) Tenant shall maintain an operational alarm system.
• Option B: (Key Control) Tenant shall control all keys to the premises.

17. Indemnification

Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, damages, losses, liabilities, and expenses (including attorney’s fees) arising out of or relating to Tenant’s use of the Premises or Tenant’s breach of this Lease.

Indemnification Options:

• Option A: (Mutual Indemnification) Landlord shall also indemnify Tenant from claims against Landlord for conditions that Landlord controls.

18. Casualty, Condemnation, and Force Majeure

If the Premises are damaged by fire or other casualty, rent shall be abated until the Premises are restored. If the Premises are condemned, this Lease shall terminate.

Casualty/Condemnation Options:

• Option A: (Termination Right) Either party may terminate this Lease if the Premises are rendered unusable for more than [Number] days due to casualty or condemnation.
• Option B: (Force Majeure) Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by a force majeure event.

19. Environmental Liability

Tenant shall not use or store any hazardous materials on the Premises in violation of any applicable environmental laws.

Environmental Options:

• Option A: (Environmental Indemnity) Tenant shall indemnify Landlord from any environmental liability arising out of Tenant’s use of the Premises.
• Option B: (Prior Conditions) Landlord will be responsible for any contamination that preceded the tenant's occupation of the space.

20. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through [Dispute Resolution Method, e.g., mediation] in [City, Utah].

Dispute Resolution Options:

• Option A: (Arbitration) Any dispute shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.
• Option B: (Litigation) Any dispute shall be resolved in the courts of the State of Utah.

21. Notice

All notices under this Lease shall be in writing and shall be deemed to be duly given if delivered personally, sent by certified mail, return receipt requested, or sent by email to the addresses set forth above.

22. Attachments/Exhibits

The following exhibits are attached to and incorporated into this Lease:

• Exhibit A: Legal Description of the Premises
• Exhibit B: Floor Plan of the Premises
• Exhibit C: CAM Estimates (If Applicable)

23. SNDA Clause (Subordination, Non-Disturbance, and Attornment)

This Lease shall be subordinate to any mortgage or deed of trust now or hereafter encumbering the Premises. Landlord shall use commercially reasonable efforts to obtain a non-disturbance agreement from any mortgagee.

24. Option to Purchase/Right of First Refusal

• Option A: (Option to Purchase) Tenant shall have the option to purchase the Property under the terms listed as Exhibit D.
• Option B: (Right of First Refusal) Tenant shall have the right of first refusal to purchase the Property under the terms listed as Exhibit E.
• Option C: (No Option) There are no options to purchase or rights of refusal granted in this contract.

25. Severability and Entire Agreement

If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Lease constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

26. Miscellaneous

Attorney’s Fees:

• Option A: In the event of any legal action arising out of this Lease, the prevailing party shall be entitled to recover its reasonable attorney’s fees and costs.

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

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

27. Utah-Specific Considerations

Tenant acknowledges that Landlord has provided all disclosures required by Utah law, including any required lead-based paint disclosures (if applicable).

Landlord and tenant will comply with all applicable provisions of the Utah Commercial Lease Act.

Tenant may not waive rights related to the condition of the property that are non-waivable under Utah law.

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

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[Landlord Name], Landlord

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[Tenant Name], Tenant