The Commercial Real Estate Lease Agreement is a fundamental document used when a property owner (landlord) agrees to rent commercial space to a business tenant in Hong Kong. This document is essential for any commercial property transaction in Hong Kong's dynamic real estate market, whether for office space, retail locations, industrial facilities, or other commercial purposes. It must comply with Hong Kong's common law system and relevant ordinances, particularly the Landlord and Tenant (Consolidation) Ordinance and the Conveyancing and Property Ordinance. The agreement typically includes detailed provisions on rent, term, security deposit, maintenance obligations, permitted use, insurance requirements, and other commercial terms specific to the Hong Kong market. It serves as the primary reference document throughout the tenure of the lease and provides legal protection for both parties' interests.
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1. Parties: Identification of the landlord and tenant, including full legal names, registration numbers for companies, and addresses
2. Background: Brief context of the agreement and property ownership
3. Definitions: Definitions of key terms used throughout the lease agreement
4. Demise: Formal grant of the lease and description of the leased premises
5. Term: Duration of the lease, including commencement and expiration dates
6. Rent and Payment Terms: Rent amount, payment schedule, and method of payment
7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit
8. Management Fees and Other Charges: Details of additional charges including management fees, utilities, and rates
9. Use of Premises: Permitted use of the premises and any restrictions
10. Tenant's Covenants: Tenant's obligations including maintenance, repair, and compliance with regulations
11. Landlord's Covenants: Landlord's obligations including structural repairs and quiet enjoyment
12. Insurance: Required insurance coverage for both parties
13. Assignment and Subletting: Restrictions and conditions for transfer of lease or subletting
14. Default and Remedies: Events of default and corresponding remedies
15. Termination: Conditions and procedures for lease termination
16. Notices: Process for serving notices between parties
17. Governing Law: Confirmation of Hong Kong law as governing law and jurisdiction
1. Break Clause: Optional early termination rights - include when parties negotiate early termination options
2. Rent Review: Mechanism for periodic rent adjustments - include for longer-term leases
3. Renovation and Fitting Out: Specific provisions for initial renovation work - include for premises requiring tenant modifications
4. Service Charge Provisions: Detailed service charge calculations - include for multi-tenant buildings
5. Right of First Refusal: Tenant's right to lease additional space or renew - include if specifically negotiated
6. Green Lease Provisions: Environmental and sustainability obligations - include for green buildings or if specifically required
7. Naming Rights: Rights to building/premises naming - include for significant commercial properties
8. Car Parking: Allocation and management of parking spaces - include if parking is available
1. Schedule 1 - Property Description: Detailed description of the premises including floor plans and measurements
2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments, including any step-up arrangements
3. Schedule 3 - Condition Report: Description of premises condition at lease commencement
4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the building and common areas
5. Schedule 5 - Fitting Out Guidelines: Technical specifications and procedures for renovation work
6. Schedule 6 - Service Charge Components: Breakdown of service charge items and calculation method
7. Schedule 7 - Handover Condition: Required condition for premises return at lease end
8. Appendix A - Plans and Drawings: Floor plans, layout drawings, and location maps
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office
Hospitality
Financial Services
Technology
Healthcare
Manufacturing
Logistics
Professional Services
Entertainment
Education
Food and Beverage
Relevant Teams
Legal
Finance
Operations
Facilities Management
Real Estate
Risk and Compliance
Administration
Property Management
Business Development
Corporate Services
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Facilities Manager
Legal Counsel
Property Manager
Operations Director
Commercial Director
Business Development Manager
Finance Manager
Compliance Officer
Risk Manager
Real Estate Investment Manager
Asset Manager
Store Manager
Branch Manager
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