Washington commercial lease agreement template

Washington Commercial Lease Agreement

This Commercial Lease Agreement ("Lease") is made and entered into as of this [Date], by and between [Landlord Name], residing at [Landlord Address], ("Landlord"), and [Tenant Name], residing at [Tenant Address], ("Tenant").

Landlord and Tenant, in consideration of the mutual covenants contained herein, agree as follows:

1. Premises

• Landlord leases to Tenant, and Tenant leases from Landlord, the premises located at [Street Address], Unit/Suite [Unit/Suite Number], [City, State, Zip Code], legally described as [Legal Description], consisting of approximately [Square Footage] square feet (the "Premises").

2. Permitted Use

• Tenant shall use the Premises solely for the purpose of: [Detailed Use, e.g., Retail Sales, General Office, Light Manufacturing].
• Hours of Operation: The Premises shall be open for business during the following hours: [Hours of Operation].
• Restrictions on Use:
  • Option A: Tenant shall not use the Premises for any purpose that violates any applicable law, ordinance, or regulation.
  • Option B: The following uses are specifically prohibited: [List of Prohibited Uses].
• Exclusive Use:
  • Option A: Landlord grants Tenant the exclusive right to operate a [Type of Business] business within the [Building/Property].
  • Option B: No exclusive use granted.

3. Lease Term

• Lease Commencement Date: [Start Date]
• Lease Expiration Date: [End Date]
• Renewal Options:
  • Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration, e.g., 5 years] each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term. The rental rate for each renewal term shall be [Rental Rate Calculation, e.g., the then-prevailing market rate, CPI adjusted].
  • Option B: No renewal options granted.
• Possession and Delivery: Landlord shall deliver possession of the Premises to Tenant on or before the Lease Commencement Date.
• Holdover:
  • Option A: If Tenant remains in possession of the Premises after the Lease Expiration Date, such holdover shall be deemed a month-to-month tenancy, terminable by either party upon [Number] days' written notice. The rent during such holdover period shall be [Percentage]% of the rent in effect immediately prior to the Lease Expiration Date.
  • Option B: Any holdover shall be considered a trespass, and Tenant shall be liable for all damages resulting therefrom.

4. Rent

• Base Rent: Tenant shall pay Landlord a base rent of [Dollar Amount] per [Month/Year], payable in advance on the [Day] day of each [Month/Year], commencing on the Lease Commencement Date.
• Payment Method: Rent shall be payable to [Landlord Name] at [Landlord Address] or such other place as Landlord may designate in writing.
• Rent Abatement:
  • Option A: Tenant shall receive a rent abatement for the first [Number] months of the Lease term.
  • Option B: No rent abatement.
• Escalation Provisions:
  • Option A: The Base Rent shall increase annually on each anniversary of the Lease Commencement Date by [Percentage]%.
  • Option B: The Base Rent shall be adjusted annually based on the Consumer Price Index (CPI) for [City, State].
  • Option C: The Base Rent shall be adjusted to reflect increases in operating costs as described in Section 5.
  • Option D: No escalation.
• Security Deposit: Tenant shall deposit with Landlord a security deposit of [Dollar Amount], to be held as security for Tenant's performance of its obligations under this Lease.
  • Conditions for Use and Refund: Landlord may use the security deposit to cure any default by Tenant under this Lease. Landlord shall refund the security deposit to Tenant, less any deductions for damages or unpaid rent, within [Number] days after the Lease Expiration Date and Tenant's surrender of the Premises.
• Non-Cash Security:
  • Option A: In lieu of a cash security deposit, Tenant may provide Landlord with an irrevocable letter of credit in the amount of [Dollar Amount].
  • Option B: No non-cash security option.

5. Additional Payments and Expenses

• CAM Charges:
  • Option A: Tenant shall pay its pro rata share of Common Area Maintenance (CAM) charges, calculated as [Tenant's Square Footage/Total Square Footage of Building]. CAM charges may include, but are not limited to, expenses for maintenance, repair, and upkeep of common areas, landscaping, snow removal, and security.
  • Option B: No CAM charges.
• Property Taxes:
  • Option A: Tenant shall pay its pro rata share of real property taxes assessed against the Premises.
  • Option B: Landlord shall pay all real property taxes.
• Insurance:
  • Option A: Tenant shall reimburse Landlord for its pro rata share of the cost of property insurance for the building.
  • Option B: Landlord shall pay for property insurance.
• Utilities: Tenant shall be responsible for the payment of all utilities serving the Premises, including but not limited to electricity, gas, water, sewer, and telecommunications.
• Repairs: Responsibility for repairs is outlined in Section 6.
• Lease Type:
  • Option A: Gross Lease: Landlord pays for all expenses, including property taxes, insurance, and CAM.
  • Option B: Net Lease: Tenant pays for a portion of property taxes in addition to rent.
  • Option C: Modified Gross Lease: Landlord and Tenant share some expenses, as specified above.
  • Option D: Triple Net (NNN) Lease: Tenant pays rent plus property taxes, insurance, and CAM.

6. Maintenance and Repair

• Premises:
  • Option A: Landlord shall be responsible for maintaining the structural components of the Premises, including the roof, foundation, and exterior walls. Tenant shall be responsible for maintaining the interior of the Premises in good repair and condition, except for structural components.
  • Option B: Tenant shall be responsible for all maintenance and repairs to the Premises, including the structural components.
• Common Areas: Landlord shall be responsible for maintaining the common areas of the building, including hallways, lobbies, restrooms, and parking areas.
• HVAC, Plumbing, Electrical:
  • Option A: Landlord is responsible for the HVAC, plumbing, and electrical systems.
  • Option B: Tenant is responsible for the HVAC, plumbing, and electrical systems.

7. Insurance

• Tenant's Insurance: Tenant shall maintain the following insurance coverage:
  • General Liability Insurance: [Dollar Amount] per occurrence.
  • Property Insurance: Covering Tenant's personal property and improvements.
  • Business Interruption Insurance: To cover lost profits in the event of business interruption.
  • Workers' Compensation Insurance: As required by Washington law.
• Landlord's Insurance: Landlord shall maintain property insurance on the building.
• Proof of Coverage: Tenant shall provide Landlord with certificates of insurance evidencing the required coverage prior to the Lease Commencement Date and upon each renewal of the policies.
• Right to Update Requirements: Landlord may update the insurance requirements from time to time to reflect changes in industry standards or legal requirements.

8. Tenant Improvements and Alterations

• Improvement Allowance:
  • Option A: Landlord shall provide Tenant with an improvement allowance of [Dollar Amount] to be used for improvements to the Premises.
  • Option B: No improvement allowance provided.
• Alterations: Tenant shall not make any alterations to the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld.
• Approval Process: Tenant shall submit detailed plans and specifications for any proposed alterations to Landlord for approval.
• Ownership of Alterations:
  • Option A: All alterations made by Tenant shall become the property of Landlord upon the Lease Expiration Date.
  • Option B: Tenant shall have the right to remove any alterations made by Tenant at the Lease Expiration Date, provided Tenant restores the Premises to its original condition.

9. Assignment and Subletting

• Assignment:
  • Option A: Tenant shall not assign this Lease without Landlord's prior written consent, which consent may be withheld in Landlord's sole discretion.
  • Option B: Tenant may assign this Lease with Landlord's consent, which shall not be unreasonably withheld.
• Subletting:
  • Option A: Tenant shall not sublet the Premises without Landlord's prior written consent, which consent may be withheld in Landlord's sole discretion.
  • Option B: Tenant may sublet the Premises with Landlord's consent, which shall not be unreasonably withheld.
• Permitted Transferees: [Description of acceptable assignees/sublessees, if any].
• Fees/Profit Sharing: [Description of any fees or profit sharing arrangements related to assignment/subletting].

10. Compliance with Law

Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including but not limited to zoning regulations, fire and safety codes, and the Washington Law Against Discrimination (WLAD).

If the Premises is in Seattle, Tenant shall comply with Seattle's Fair Chance Housing Ordinance, if applicable.

11. Americans with Disabilities Act (ADA)

• Option A: Landlord shall be responsible for ensuring that the Premises complies with the Americans with Disabilities Act (ADA).
• Option B: Tenant shall be responsible for ensuring that the Premises complies with the Americans with Disabilities Act (ADA).
• Option C: Landlord and Tenant shall share responsibility for ensuring that the Premises complies with the Americans with Disabilities Act (ADA), as follows: [Detailed division of responsibilities].

12. Default and Remedies

• Events of Default: The following shall constitute events of default by Tenant:
  • Non-payment of rent.
  • Unauthorized use of the Premises.
  • Abandonment of the Premises.
  • Violation of any other material term of this Lease.
• Notice and Cure Periods: Landlord shall provide Tenant with written notice of any default. Tenant shall have [Number] days to cure a monetary default (non-payment of rent) and [Number] days to cure a non-monetary default.
• Remedies: Upon the occurrence of an event of default, Landlord shall have the following remedies:
  • Termination of the Lease.
  • Re-entry and repossession of the Premises.
  • Recovery of damages, including but not limited to unpaid rent, the cost of reletting the Premises, and any other losses suffered by Landlord as a result of Tenant's default.
• Late Fees/Interest: Overdue amounts shall bear interest at the rate of [Percentage]% per month, or the highest rate permitted by law, whichever is lower. A late fee of [Dollar Amount] may also be charged for any payment received more than [Number] days after the due date.
• Cumulative Remedies: All remedies available to Landlord under this Lease are cumulative and are in addition to any other remedies available at law or in equity.

13. Destruction and Casualty

If the Premises is damaged or destroyed by fire or other casualty, Landlord shall have the option to:

• Option A: Terminate this Lease.
• Option B: Repair or restore the Premises. If Landlord elects to repair or restore the Premises, rent shall abate during the period of restoration, to the extent the Premises is untenantable.

If the damage or destruction is caused by Tenant's negligence, Tenant shall be responsible for the cost of repair or restoration.

If the Premises is only partially damaged and Landlord elects to repair the Premises, Tenant shall continue to pay rent on the undamaged portion of the Premises.

14. Eminent Domain and Condemnation

If the Premises is taken by eminent domain or condemnation, this Lease shall:

• Option A: Terminate automatically.
• Option B: Continue in effect as to the portion of the Premises not taken, with a corresponding reduction in rent.

Any condemnation award shall be allocated as follows: [Allocation of Award between Landlord and Tenant].

15. Indemnification

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

Landlord shall indemnify and hold Tenant harmless from and against any and all claims, losses, damages, liabilities, and expenses (including attorneys' fees) arising out of or relating to Landlord's negligence or Landlord's breach of this Lease.

16. Environmental Matters

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

Tenant shall be responsible for remediating any environmental contamination caused by Tenant's use of the Premises.

17. Access and Right of Entry

Landlord shall have the right to enter the Premises at reasonable times to inspect the Premises, make repairs, or show the Premises to prospective buyers or tenants, provided Landlord gives Tenant at least [Number] hours' prior notice.

In the event of an emergency, Landlord may enter the Premises without prior notice.

18. Signage

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

Landlord's approval shall not be unreasonably withheld.

Tenant shall be responsible for the cost of installing and maintaining its signage.

Tenant shall remove all signage at the Lease Expiration Date.

19. Surrender of Premises

Upon the Lease Expiration Date, Tenant shall surrender the Premises to Landlord in good condition and repair, ordinary wear and tear excepted.

Tenant shall remove all of its personal property from the Premises.

Tenant shall repair any damage to the Premises caused by Tenant's removal of its personal property.

Treatment of Fixtures:

• Option A: All fixtures shall remain the property of the Landlord
• Option B: Tenant can remove trade fixtures provided they restore the property to original condition.

20. Security

[Description of Security Provisions, e.g., Security System, Access Control]. Landlord is not liable for theft.

21. Subordination, Non-Disturbance, and Attornment (SNDA)

This Lease shall be subordinate to any mortgage or deed of trust now or hereafter placed upon the Premises. Landlord shall endeavor to provide Tenant with a Non-Disturbance Agreement.

22. Estoppel Certificate

Landlord may request Tenant to execute and deliver an estoppel certificate within [Number] days of Landlord's request.

23. Dispute Resolution

• Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Washington.
• Jurisdiction/Venue: Any legal action arising out of or relating to this Lease shall be brought in the courts of [County] County, Washington.
• [Option to Include/Exclude Mediation, Arbitration, Attorney Fees].

24. Notice

All notices 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 to the addresses set forth above.

25. Guarantees/Additional Covenants

[Description of any Guarantees or Additional Covenants, e.g., Personal Guaranty by Tenant's Principal].

26. Brokerage

[Description of Brokerage Commission Agreement]. Landlord and Tenant each represents that they have not dealt with any real estate broker other than [Broker Name].

27. Special Washington State Requirements

• Lead-Based Paint Disclosure: For properties built before 1978, Tenant acknowledges the right to request a lead-based paint disclosure.
• Energy Usage Disclosure: Tenant acknowledges compliance with RCW 19.27A regarding energy usage disclosures.
• Local Ordinances: This Lease is subject to any applicable local ordinances, including but not limited to Seattle's Just Cause Eviction Ordinance.
• Waivers: [Options to Include/Remove Jury Trial Waiver, Attorney Fee Provisions, and Specific Notice Periods].

28. Miscellaneous

• Force Majeure: Neither party shall be liable for any failure to perform its obligations under this Lease to the extent such failure is caused by a force majeure event.
• Entire Agreement: This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
• Amendment: This Lease may be amended only by a written instrument signed by both parties.
• Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Waiver: No waiver of any breach of this Lease shall be deemed a waiver of any subsequent breach.
• 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.
• Electronic Signature: Electronic signatures shall be accepted as original signatures.
• Time of the Essence: Time is of the essence in the performance of all obligations under this Lease.
• Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

29. Exhibits and Attachments

[List of Exhibits and Attachments, e.g., Floor Plan, Rules and Regulations, Improvement Specifications].

30. Specialty Use Provisions (If Applicable)

[Include clauses for health department compliance, special licensing, or operational restrictions if the premises is for medical, cannabis, restaurant, or other specialty use].

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