Commercial Net Lease for Part of Building

This form contains everything businesses and landlords need to create their own net lease for a space within a building. In a net lease, the tenant not only pays rent, but also part of the building's operating costs. These costs include property taxes, insurance and maintenance.

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Net Lease for Part of Building

Names

This lease is made by , Landlord, and , Tenant.

Premises Being Leased

Landlord is leasing to Tenant and Tenant is leasing from Landlord a portion of the following premises: .  Specifically, Tenant is leasing .

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Shared Facilities Shared Facilities. As part of this lease, Tenant and Tenant's employees and customers may use the following additional facilities in common with other tenants, employees, and customers:

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Parking spaces Parking spaces: 
Restroom facilities Restroom facilities: 
Storage areas Storage areas: 
Hallways, stairways, and elevators Hallways, stairways, and elevators: 
Conference rooms Conference rooms: 
Other Other: 

Term of Lease

This lease begins on  and ends on .

Rent

Tenant will pay rent in advance on day  of each month. Tenant's first rent payment will be on  in the amount of $. Tenant will pay rent of $ per month thereafter.

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Static rent Tenant will pay this rental amount for the entire term of the lease. 
Annual rent increase Rent will increase each year, on the anniversary of the starting date, as follows: 
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Lease extension options

Option to Extend Lease

First Option. Landlord grants Tenant the option to extend this lease for an additional  years. To exercise this option, Tenant must give Landlord written notice on or before .  Tenant may exercise this option only if Tenant is in substantial compliance with the terms of this lease. Tenant will lease the premises on the same terms as in this lease except as follows: .

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Second Option Second Option. If Tenant exercises the option granted above, Tenant will then have the option to extend this lease for  years beyond the first option period. To exercise this second option, Tenant must give Landlord written notice on or before .  Tenant may exercise this option only if Tenant is in substantial compliance with the terms of this lease. Tenant will lease the premises on the same terms as in this lease except as follows: .
 

Security Deposit

Tenant has deposited $ with Landlord as security for Tenant's performance of this lease. Landlord will refund the full security deposit to Tenant within 14 days following the end of the lease if Tenant returns the premises to Landlord in good condition (except for reasonable wear and tear) and Tenant has paid Landlord all sums due under this lease. Otherwise, Landlord may deduct any amounts required to place the premises in good condition and to pay for any money owed to Landlord under the lease.

Improvements by Landlord

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Repairs and Improvements

Before the lease term begins, Landlord (at Landlord's expense) will make the repairs and improvements listed in Attachment 1 to this contract. 
"As is" Tenant accepts the premises in "as is" condition. Landlord need not provide any repairs or improvements before the lease term begins.

Improvements by Tenant

Tenant may make alterations and improvements to the premises after obtaining the Landlord's written consent, which will not be unreasonably withheld. At any time before this lease ends, Tenant may remove any of Tenant's alterations and improvements, as long as Tenant repairs any damage caused by attaching the items to or removing them from the premises.

Tenant's Use of Premises

Tenant will use the premises for the following business purposes: . Tenant may also use the premises for purposes reasonably related to the main use.

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Landlord representations

Landlord's Representations

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Premises in compliance with all laws and regulations Landlord represents that at the beginning of the lease term, the premises will be properly zoned for Tenant's stated use and will be in compliance with all applicable laws and regulations.
 
No storage of toxic or hazadous substances Landlord represents that the premises have not been used for the storage or disposal of any toxic or hazardous substance and Landlord has received no notice from any governmental authority concerning removal of any toxic or hazardous substance from the property.
 

Utilities and Services

Separately Metered Utilities. Tenant will pay for the following utilities and services that are separately metered or billed to Tenant:

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Water Water
Electricity Electricity
Gas Gas
Heating oil Heating oil
Trash collection Trash collection
Other Other: 

Other Utilities. Tenant will pay % of the following utilities and services that are not separately metered to Tenant:

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Water Water
Electricity Electricity
Gas Gas
Heating oil Heating oil
Trash collection Trash collection
Other Other: 

Tenant will pay for these utilities in monthly installments on or before the  day of each month, in advance, in an amount estimated by Landlord. Every  months, Landlord will give Tenant copies of the bills sent to Landlord. If Tenant's share of the actual costs for utilities and services exceeds the amount paid in advance by Tenant, Tenant will pay Landlord the difference within 30 days. If Tenant has paid more than Tenant's share of the actual costs, Tenant will receive a credit for the overage, which will be applied to reduce the next installment due from Tenant.

Maintenance and Repair of Common Areas 

Landlord will maintain and make all necessary repairs to the common areas of the building and adjacent premises and keep these areas safe and free of trash. This includes:

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On-site parking areas On-site parking areas
Off-site parking areas Off-site parking areas
Restroom facilities Restroom facilities
Storage areas Storage areas
Hallways, stairways, and elevators Hallways, stairways, and elevators
Conference rooms Conference rooms
Sidewalks and driveways Sidewalks and driveways
Other Other: 

Tenant will pay Landlord % of the cost of such maintenance and repairs. Tenant will pay these amounts in monthly installments on or before the  day of each month, in advance, in an amount estimated by Landlord. Within 90 days after the end of each lease year, Landlord will give Tenant a statement of the actual amount of Tenant's share of such costs for such period. If Tenant's share of the actual costs exceeds the amount paid in advance by Tenant, Tenant will pay Landlord the difference within 30 days. If Tenant has paid more than Tenant's share of the actual costs, Tenant will receive a credit for the overage which will be applied to reduce the next installment due from Tenant.

Maintenance and Repair of Leased Premises

Landlord will maintain and make all necessary repairs to the following parts of the building in which the leased premises are located:

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Roof Roof
Foundation and structural components Foundation and structural components
Exterior walls Exterior walls
Interior common walls Interior common walls
Exterior doors and windows Exterior doors and windows
Plumbing system Plumbing system
Sewage disposal system Sewage disposal system
Electrical system Electrical system
HVAC Heating, ventilating, and air-conditioning systems
Sprinkler system Sprinkler system
Other Other: 

Tenant will maintain and repair the leased premises and keep the leased premises in good repair except for those items specified above as being Landlord's responsibility.

Insurance

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Landlord: Fire insurance Landlord will carry fire and extended coverage insurance on the building.
Tenant: Public liability insurance

Tenant will carry public liability insurance; this insurance will include Landlord as an insured party. The public liability coverage for personal injury will be in at least the following amounts:

$ per occurrence

$ in any one year
 
Landlord and Tenant liability release Landlord and Tenant release each other from any liability to the other for any property loss, property damage, or personal injury to the extent covered by insurance carried by the party suffering the loss, damage, or injury.
 
Tenant will give Landlord copy of insurance Tenant will give Landlord a copy of all insurance policies that this lease requires Tenant to obtain.
 

Taxes

Tenant will pay   of all taxes and assessments that may be levied or assessed against the building and the land for the period of the lease. Tenant will pay these taxes and assessments in monthly installments on or before the  day of each month, in advance, in an amount estimated by Landlord. Landlord will give Tenant copies of the tax bills and assessments as Landlord receives them. If Tenant's share of the actual taxes and assessments exceeds the amount paid in advance by Tenant, Tenant will pay Landlord the difference within 30 days. If Tenant has paid more than Tenant's share of the actual taxes and assessments. Tenant will receive a credit for the overage, which will be applied to reduce the next installment due from Tenant. Taxes and assessments to be paid by Tenant will be prorated on a due date basis and will be assumed to cover a period of one year from the due date.

Tenant will pay all personal property taxes levied and assessed against Tenant's personal property.

Subletting and Assignment 

Tenant will not assign this lease or sublet any part of the premises without the written consent of Landlord. Landlord will not unreasonably withhold such consent.

Damage to Premises

A. If the premises are damaged through fire or other cause not the fault of Tenant, Tenant will owe no rent for any period during which Tenant is substantially deprived of the use of the premises.

B. If Tenant is substantially deprived of the use of the premises for more than 90 days because of such damage, Tenant may terminate this lease by delivering written notice of termination to Landlord.

Notice of Default 

Before starting a legal action to recover possession of the premises based on Tenant's default, Landlord will notify Tenant in writing of the default. Landlord will take legal action only if Tenant does not correct the default within ten days after written notice is given or mailed to Tenant.

Quiet Enjoyment 

As long as Tenant is not in default under the terms of this lease, Tenant will have the right to occupy the premises peacefully and without interference.

Eminent Domain 

This lease will become void if any part of the leased premises or the building in which the leased premises are located is taken by eminent domain. Tenant has the right to receive and keep any amount of money that the agency taking the premises by eminent domain pays for the value of Tenant's lease, its loss of business, and for moving and relocation expenses.

Holding Over 

If Tenant remains in possession after this lease ends, the continuing tenancy will be from month to month.

Disputes

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Litigation

Litigation. If a dispute arises, either party may take the matter to court.

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Losing party agrees to pay attorneys' fees Attorneys' Fees. If either party brings a legal action arising out of a dispute over this agreement, the losing party will reimburse the prevailing party for all reasonable costs and attorneys' fees incurred by the prevailing party in the lawsuit.

Mediation and Possible Litigation

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Pre-selected mediator Mediation and Possible Litigation. If a dispute arises, the parties will try in good faith to settle it through mediation conducted by . The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, either party may take the matter to court.
Future mutually selected mediator Mediation and Possible Litigation. If a dispute arises, the parties will try in good faith to settle it through mediation conducted by a mediator to be mutually selected. The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, either party may take the matter to court.
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Losing party agrees to pay attorneys' fees Attorneys' Fees. If either party brings a legal action arising out of a dispute over this agreement, the losing party will reimburse the prevailing party for all reasonable costs and attorneys' fees incurred by the prevailing party in the lawsuit.
Mediation and Arbitration
Alternate Selection
Label Contract Text
Pre-selected mediator Mediation and Possible Arbitration. If a dispute arises, the parties will try in good faith to settle it through mediation conducted by . The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, the parties agree to submit the matter to binding arbitration.
Future mutually selected mediator Mediation and Possible Arbitration. If a dispute arises, the parties will try in good faith to settle it through mediation conducted by a mediator to be mutually selected. The parties will share the costs of the mediator equally. Each party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within 30 days after it is referred to the mediator, the parties agree to submit the matter to binding arbitration.

Additional Agreements

Landlord and Tenant additionally agree that .

Entire Agreement 

This is the entire agreement between the parties. It replaces and supersedes any and all oral agreements between the parties, as well as any prior writings.

Successors and Assignees 

This lease binds and benefits the heirs, successors, and assignees of the parties.

Notices 

All notices must be in writing. A notice may be delivered to a party at the address that follows a party's signature or to a new address that a party designates in writing. A notice may be delivered:

  1. in person,
  2. by certified mail, or
  3. by overnight courier.

Governing Law 

This lease will be governed by and construed in accordance with the laws of the state of .

Counterparts 

This lease may be signed by the parties in different counterparts and the signature pages combined will create a document binding on all parties.

Modification 

This lease may be modified only by a written agreement signed by all the parties.

Waiver 

If one party waives any term or provision of this lease at any time, that waiver will only be effective for the specific instance and specific purpose for which the waiver was given. If either party fails to exercise or delays exercising any of its rights or remedies under this lease, that party retains the right to enforce that term or provision at a later time.

Keep Together

Severability

If any court determines that any provision of this lease is invalid or unenforceable, any invalidity or unenforceability will affect only that provision and will not make any other provision of this lease invalid or unenforceable and shall be modified, amended, or limited only to the extent necessary to render it valid and enforceable.


Landlord

a _________________________________________________

Signature: ___________________________________________
Dated: _____________________________________________
Printed name: _______________________________________
Title: ______________________________________________
Address: ___________________________________________


Tenant

Name of business: ___________________________________
a _________________________________________________

Signature: ___________________________________________
Dated: _____________________________________________
Printed name: _______________________________________
Title: ______________________________________________
Address: ___________________________________________
 

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Guarantor

Guarantor

By signing this lease, I personally guarantee the performance of all financial obligations of 
 under this lease.

Signature: ___________________________________________
Dated: _____________________________________________
Printed name: _______________________________________
Title: ______________________________________________
Address: ___________________________________________

 

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