Virginia commercial lease agreement template

Virginia Commercial Lease Agreement

This Commercial Lease Agreement (the “Lease”) is made and effective as of this [Date], by and between [Lessor Name], residing at [Lessor Address] (“Landlord”), and [Lessee Name], residing at [Lessee Address] (“Tenant”).

Landlord and Tenant agree as follows:

Premises:

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises described as follows: [Property Address], including [Suite/Unit Number], and identified as Parcel ID: [Parcel Identification Number (if applicable)], together with all appurtenances, fixtures, and common areas related thereto (the “Premises”). Included Fixtures: [List of Included Fixtures]. Common Areas: [Description of Common Areas].

Lease Term:

Option A: Fixed Term

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

Option B: Periodic Term

The term of this Lease shall commence on [Start Date] and continue as a [Monthly/Quarterly/Annual] tenancy until terminated as provided herein.

Termination Notice Period: [Number] days prior written notice.

Renewal Option:

Option A: Renewal Option Included. The Tenant shall have the option to renew this Lease for an additional term of [Number] years, provided that the Tenant gives the Landlord written notice of such intention to renew at least [Number] days prior to the expiration of the initial term. The rent for the renewal term shall be [New Rent Amount/Fair Market Value].

Option B: No Renewal Option. Tenant shall not have the option to renew this lease.

Rent:

Base Rent:

The Tenant shall pay to the Landlord as base rent for the Premises the sum of [Dollar Amount] per [Month/Year].

Rent Calculation Method:

Option A: Square Footage. The base rent is calculated at [Dollar Amount] per square foot.

Option B: Base Year. Rent is calculated based on operating expenses from the base year [Year].

Due Date:

Rent shall be due and payable in advance on the [Day] day of each [Month/Period] commencing on [Start Date].

Payment Method:

Rent shall be paid by [Check/Wire Transfer/Online Payment] to [Payment Instructions].

Escalation Clause:

Option A: Annual Increase. The base rent shall increase by [Percentage]% annually on each anniversary of the commencement date.

Option B: CPI Adjustment. The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [CPI Location], as published by the [Publishing Agency].

Option C: No Escalation. The base rent shall remain fixed throughout the term of the lease.

Late Fee:

If rent is not received within [Number] days after the due date, a late fee of [Dollar Amount] or [Percentage]% of the overdue rent shall be charged. Additionally, interest shall accrue on the overdue amount at a rate of [Percentage]% per annum from the due date until paid.

Security Deposit:

Amount: The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount].

Purpose: The security deposit shall be held by the Landlord as security for the Tenant’s performance of all covenants and obligations under this Lease, including, but not limited to, payment of rent and repair of any damage to the Premises caused by the Tenant, excluding reasonable wear and tear.

Return: The Landlord shall return the security deposit to the Tenant, less any deductions for damages or other defaults, within forty-five (45) days after the termination of the Lease and the Tenant’s surrender of the Premises, as required by Virginia law.

Deductions: The Landlord may deduct from the security deposit only for: (a) damage to the Premises beyond reasonable wear and tear; (b) unpaid rent; (c) costs incurred to clean the Premises if left in an unreasonably dirty condition; (d) other monetary defaults under the Lease.

Use and Occupancy:

Permitted Use: The Premises shall be used and occupied solely for the purpose of [Description of Permitted Use].

Exclusivity:

Option A: Exclusive Use. Landlord agrees that the Tenant shall have the exclusive right to conduct the business of [Description of Exclusive Use] within the [Building/Property].

Option B: No Exclusivity. Landlord makes no representation that Tenant will have exclusive rights to conduct business on the property.

Co-Tenancy Requirements: [Description of Co-Tenancy Requirements (if any)]

Prohibited Activities: The Tenant shall not use the Premises for any unlawful purpose, or any purpose that violates any applicable zoning ordinance or other governmental regulation. The Tenant shall not conduct any activity that creates a nuisance or disturbs other tenants.

Compliance: The Tenant shall comply with all applicable federal, state, and local laws, ordinances, rules, and regulations relating to the use and occupancy of the Premises, including zoning regulations and the Americans with Disabilities Act (ADA).

Utilities and Services:

Landlord Responsibility: The Landlord shall be responsible for the following utilities and services: [List of Landlord's Utility Responsibilities].

Tenant Responsibility: The Tenant shall be responsible for the following utilities and services: [List of Tenant's Utility Responsibilities].

Administrative Fees: The Landlord may charge an administrative fee of [Dollar Amount] for managing utilities.

Maintenance and Repair:

Landlord Responsibility: The Landlord shall be responsible for maintaining the structural elements of the Premises, including the roof, foundation, and exterior walls, as well as the common areas.

Tenant Responsibility: The Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, including non-structural elements, fixtures, and equipment. Tenant shall be responsible for all repairs caused by Tenant’s negligence.

Landlord Entry: The Landlord shall have the right to enter the Premises at reasonable times to inspect the Premises, make necessary repairs, or show the Premises to prospective tenants or purchasers, provided that the Landlord gives the Tenant reasonable notice, except in emergencies.

Improvements, Alterations, and Fixtures:

Initial Build-Out: [Description of Initial Build-Out Obligations]

Tenant Improvements: The Tenant shall not make any alterations, additions, or improvements to the Premises without the prior written consent of the Landlord.

Ownership of Improvements:

Option A: Landlord Ownership. All improvements shall become the property of the Landlord upon the termination of the Lease.

Option B: Tenant Ownership. Tenant may remove all improvements at the end of the lease, as long as the premise is restored.

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

Assignment and Subletting:

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

Option B: No Assignment or Subletting. The Tenant shall not assign this Lease or sublet the Premises.

Recapture Rights: The Landlord shall have the right to recapture the Premises in the event the Tenant requests consent to an assignment or sublease.

Insurance:

Tenant's Insurance: The Tenant shall maintain commercial general liability insurance with minimum limits of [Dollar Amount] per occurrence and property insurance covering the Tenant’s personal property and business interruption.

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

Waiver of Subrogation: The parties hereby waive any rights of subrogation against each other for any loss or damage covered by insurance.

Indemnification: The Tenant shall indemnify and hold the Landlord harmless from any and all claims, losses, damages, liabilities, and expenses arising out of the Tenant’s use and occupancy of the Premises. The Landlord shall indemnify and hold the Tenant harmless from any and all claims, losses, damages, liabilities, and expenses arising out of the Landlord’s negligence.

Taxes and Operating Expenses:

Option A: Gross Lease. Landlord pays all property taxes, insurance and CAM.

Option B: NNN Lease. Tenant pays a pro rata share of the property taxes, insurance and CAM. Tenant shall pay [Percentage]% of all operating expenses for the property, including property taxes, insurance, and common area maintenance (CAM) charges.

Expense Caps: Operating expense increases are capped at [Percentage]% per year.

Audit Rights: The Tenant shall have the right to audit the Landlord’s records related to operating expenses.

Default and Remedies:

Tenant Default: The following shall constitute a default by the Tenant: (a) failure to pay rent when due; (b) failure to comply with any other term or condition of this Lease.

Landlord Default: The following shall constitute a default by the Landlord: (a) failure to maintain the Premises as required by this Lease; (b) failure to comply with any other term or condition of this Lease.

Notice and Cure: The non-defaulting party shall give the defaulting party written notice of the default and a period of [Number] days to cure the default.

Remedies:

Landlord's Remedies: If the Tenant fails to cure a default, the Landlord may terminate this Lease, re-enter the Premises, and pursue any other remedies available under Virginia law, including rent acceleration and landlord’s lien.

Tenant's Remedies: If the Landlord fails to cure a default, the Tenant may terminate this Lease and pursue any other remedies available under Virginia law, including specific performance and damages.

Options:

Renewal Option: As described in Section 2.

Expansion Option: The Tenant shall have the option to lease additional space in the Building, subject to availability and the Landlord’s approval.

Right of First Refusal: The Tenant shall have the right of first refusal to lease any adjacent space that becomes available.

Termination Option: Tenant may terminate the lease by paying a fee of [Amount] to Landlord.

Compliance with Laws:

The Tenant shall comply with all applicable laws, ordinances, rules, and regulations relating to the use and occupancy of the Premises, including the Americans with Disabilities Act (ADA) and all applicable environmental laws.

Casualty and Condemnation:

If the Premises are damaged by fire or other casualty, the Landlord shall have the option to repair the Premises, in which case the rent shall abate during the period of repair. If the Premises are substantially damaged or condemned, either party may terminate this Lease.

Signage:

The Tenant shall have the right to install signage on the Premises, subject to the Landlord’s approval and compliance with all applicable laws and regulations.

Rules and Regulations:

The Tenant shall comply with all rules and regulations established by the Landlord for the Building, including rules relating to common area use, security, and parking.

Governing Law and Notices:

This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia.

All notices required or permitted under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above. Alternative Contact Method: [Method]

Choice of Law and Venue: This Lease shall be governed by the laws of the Commonwealth of Virginia, without regard to its conflict of laws principles. The venue for any legal action arising out of this Lease shall be in the courts of [County/City], Virginia.

Dispute Resolution:

Option A: Negotiation. The parties shall attempt to resolve any disputes arising out of this Lease through good faith negotiation.

Option B: Mediation. If negotiation fails, the parties shall submit the dispute to mediation.

Option C: Arbitration. Any unresolved dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.

Option D: Litigation. Either party may file a lawsuit to resolve the dispute in a court of competent jurisdiction.

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

Warranties and Representations:

Each party warrants and represents that it has the full right, power, and authority to enter into this Lease and to perform its obligations hereunder.

Environmental and Hazardous Materials:

The Tenant shall not use, store, or dispose of any hazardous materials on the Premises without the Landlord’s prior written consent and in compliance with all applicable environmental laws.

Required Disclosures/Addenda:

Asbestos Disclosure: [Include/Exclude]

Lead-Based Paint Disclosure: [Include/Exclude]

Mold Disclosure: [Include/Exclude]

Subordination, Non-Disturbance, and Attornment (SNDA):

This Lease shall be subordinate to any existing or future mortgage or deed of trust encumbering the Premises. The Landlord shall obtain a non-disturbance agreement from any mortgagee providing that the Tenant’s rights under this Lease shall be protected in the event of foreclosure.

Estoppel Certificate:

The Tenant shall, within ten (10) days after request by the Landlord, execute and deliver to the Landlord an estoppel certificate confirming the terms of this Lease.

Virginia-Specific Provisions:

Virginia Commercial Landlord and Tenant Act: This Lease is governed by the provisions of the Virginia Commercial Landlord and Tenant Act.

Notice Periods: Statutory notice periods for default and termination under Virginia law shall apply.

Security Deposit: The Landlord shall return the security deposit within 45 days of termination of the lease and delivery of possession as required by Virginia Code.

Eviction: Eviction proceedings shall comply with Virginia law.

Confession of Judgment: Confession of judgment provisions are unenforceable in Virginia.

Local Jurisdiction Addenda:

[Name of City or County] Addendum: [Include/Exclude]. [Details]

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

[Lessor Name] (Landlord)

By: [Signature]

Name: [Printed Name]

Title: [Title]

[Lessee Name] (Tenant)

By: [Signature]

Name: [Printed Name]

Title: [Title]