The Commercial Real Estate Lease Agreement serves as the foundational document for business property rentals in the United States. It is essential when any business entity seeks to lease commercial space, whether for retail, office, industrial, or other commercial purposes. This agreement differs significantly from residential leases due to its complexity and the assumption that parties have more equal bargaining power. It must comply with federal regulations such as the ADA, state-specific property laws, and local zoning ordinances. The document typically includes detailed provisions for operating expenses, maintenance obligations, improvements, and various business-specific considerations.
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1. Parties: Identification of landlord and tenant, including legal names and addresses
2. Background: Context of the lease agreement and property description
3. Definitions: Key terms used throughout the agreement
4. Premises: Detailed description of the leased property and common areas
5. Term: Duration of lease, commencement date, and expiration date
6. Rent: Base rent, payment terms, and escalation provisions
7. Security Deposit: Amount, terms, and conditions for return
8. Use of Premises: Permitted uses and restrictions
9. Operating Expenses and Utilities: Responsibility for costs and payments
10. Maintenance and Repairs: Responsibilities of both parties
1. Option to Renew: Terms for lease extension when parties want to include future renewal rights
2. Tenant Improvements: Allowances and conditions for modifications when premises require modification for tenant use
3. Subletting and Assignment: Rights and restrictions regarding third-party use when subletting might be considered
4. Right of First Refusal: Tenant's rights to lease additional space in multi-tenant buildings with expansion possibilities
1. Floor Plan: Detailed drawing of leased premises
2. Operating Expense Schedule: Breakdown of additional charges and calculations
3. Rules and Regulations: Building/property specific rules
4. Maintenance Schedule: Detailed breakdown of maintenance responsibilities
5. Insurance Requirements: Specific insurance coverage requirements
6. Tenant Improvement Work Letter: Specifications for permitted improvements
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