Double Net (NN) Lease Agreement Template

Double Net (NN) Lease Agreement Template

This Double Net (NN) Lease Agreement (“Lease”) is made as of [Date of Lease].

1. Parties and Premises

Landlord:
Full Legal Name: [Landlord Full Legal Name]
Business Name (if applicable): [Landlord Business Name]
Address: [Landlord Street Address]
City, State/Province, ZIP/Postal Code, Country: [Landlord City/State/ZIP/Country]
Phone: [Landlord Phone Number]
Email: [Landlord Email Address]

Tenant:
Full Legal Name: [Tenant Full Legal Name]
Business Name (if applicable): [Tenant Business Name]
Address: [Tenant Street Address]
City, State/Province, ZIP/Postal Code, Country: [Tenant City/State/ZIP/Country]
Phone: [Tenant Phone Number]
Email: [Tenant Email Address]

Premises:
Property Address: [Property Street Address]
City, State/Province, ZIP/Postal Code, Country: [Property City/State/ZIP/Country]
Unit/Suite/Description: [Premises Description]
Approximate Rentable Area: [Premises Area]

The Premises are part of the real property commonly known as [Building or Center Name] (the “Property”).

2. Term

Lease Commencement Date: [Commencement Date]
Rent Commencement Date (if different): [Rent Commencement Date or “Same as Lease Commencement Date”]
Lease Expiration Date: [Expiration Date]

The “Term” of this Lease begins on the Lease Commencement Date and ends on the Lease Expiration Date, unless earlier terminated or extended according to this Lease.

3. Base Rent

Base Rent per [Month/Year]: [Base Rent Amount and Currency]
Payment Frequency: [Monthly / Other]

Tenant will pay Base Rent in advance, without deduction or setoff, on or before the [Day] day of each [Payment Period] during the Term to the address or account designated by Landlord in writing.

If the Term begins or ends on a day other than the first or last day of a calendar month, Base Rent for that partial month will be prorated based on the number of days in the month.

4. Additional Rent – NN Charges (Taxes and Insurance)

This Lease is intended to be a “double net” (NN) lease. In addition to Base Rent, Tenant will pay the amounts described in this Section as “Additional Rent.”

4.1 Property Taxes

Tenant will pay or reimburse Landlord for all real property taxes and assessments imposed on the Property that are allocable to the Premises for each tax period during the Term, unless the parties specify a different allocation here: [Tax Allocation Details].

If the Property includes multiple tenants, Tenant’s share of property taxes will be:

Tenant’s Tax Share: [Percentage or Calculation Method, such as “Premises rentable area / total rentable area of Property”].

Tenant will pay property taxes either directly to the taxing authority (if separately billed) or to Landlord within [Number] days after receiving a written statement or copy of the tax bill.

4.2 Property Insurance

Landlord will maintain property insurance on the building in types and amounts selected by Landlord. Tenant will reimburse Landlord for the portion of property insurance premiums allocable to the Premises (the “Insurance Share”).

Tenant’s Insurance Share: [Percentage or Calculation Method].

Landlord may estimate Tenant’s Insurance Share and bill Tenant in periodic installments, with a reconciliation after each policy year if needed. Tenant will pay any additional amount due within [Number] days after receiving the reconciliation statement.

5. Use of Premises

Permitted Use: [Permitted Use description, such as “general office use,” “retail store selling [Type of Goods],” or “light warehouse and distribution”].

Tenant will:

• Use the Premises only for the Permitted Use and lawful purposes related to it.

• Comply with all applicable laws, regulations, and codes.

• Comply with any reasonable building rules and regulations provided by Landlord in writing.

• Avoid activities that create a nuisance or unreasonable interference with other occupants or the Property.

6. Security Deposit

Security Deposit Amount: [Security Deposit Amount and Currency]

Tenant will pay the Security Deposit to Landlord on or before the Lease Commencement Date. Landlord may hold the Security Deposit as security for Tenant’s performance of its obligations under this Lease.

After the Term ends and Tenant has vacated the Premises and complied with this Lease, Landlord will return any remaining Security Deposit, less lawful deductions for unpaid sums or damage beyond ordinary wear and tear, within the period required by applicable law.

7. Utilities and Services

Tenant is responsible for and will pay directly all utilities and services serving the Premises, which may include electricity, gas, water, sewer, trash removal, telephone, and internet, unless this Lease states that a specific utility is paid by Landlord.

If any utilities are shared with other premises and not separately metered, Tenant will pay a fair share allocated by Landlord based on reasonable methods (such as floor area, usage estimates, or sub-meter readings), described here if desired: [Utility Allocation Details].

8. Maintenance and Repairs

8.1 Tenant Responsibilities

At Tenant’s expense, Tenant will:

• Maintain the interior, non-structural portions of the Premises in good order and condition, including interior walls, doors, floor coverings, interior glass, lighting, and Tenant’s fixtures and equipment.

• Keep the Premises clean and free of debris.

• Promptly repair any damage to the Premises caused by Tenant, Tenant’s employees, contractors, or visitors, beyond ordinary wear and tear.

If the Premises have dedicated HVAC units or equipment serving only the Premises, Tenant will be responsible for routine maintenance and minor repairs of such systems, unless otherwise specified here: [HVAC Responsibility].

8.2 Landlord Responsibilities

At Landlord’s expense, subject to reimbursement for taxes and insurance as provided in Section 4, Landlord will:

• Maintain the structural elements of the building, including foundation, roof structure, and exterior walls (excluding interior finishes and damage caused by Tenant).

• Maintain and repair common areas of the Property, including parking areas, driveways, sidewalks, landscaping, and shared building systems serving multiple tenants.

Landlord’s costs of common area maintenance and ordinary operating expenses (other than property taxes and property insurance premiums allocated under Section 4) are generally not passed through to Tenant under this NN structure, unless the parties specify otherwise here: [CAM / Operating Cost Allocation, if any].

9. Alterations and Improvements

Tenant may not make structural alterations or major changes to the Premises without Landlord’s prior written consent.

Non-structural interior alterations or improvements may be made by Tenant with Landlord’s consent if required and in compliance with building rules, design standards, and applicable law.

Unless otherwise agreed in writing:

• Tenant’s movable trade fixtures, furniture, and equipment remain Tenant’s property and may be removed at the end of the Term if Tenant repairs any damage caused by removal.

• Built-in fixtures and improvements that are permanently attached to the Premises generally remain and become part of the Property at the end of the Term.

10. Insurance and Indemnity

10.1 Tenant Insurance

Tenant will maintain, at Tenant’s expense, during the Term:

• Commercial general liability insurance covering bodily injury and property damage occurring in or about the Premises, with minimum limits of [Liability Limit] per occurrence and [Aggregate Limit] aggregate, or other limits reasonably required by Landlord.

• Property insurance for Tenant’s personal property, inventory, equipment, and trade fixtures located in the Premises.

Tenant will provide Landlord with certificates of insurance and will name Landlord (and, if requested, Landlord’s mortgagee) as an additional insured on Tenant’s liability policy.

10.2 Landlord Insurance

Landlord will maintain property insurance for the building and common areas in types and amounts selected by Landlord, and Tenant will reimburse Landlord for Tenant’s Insurance Share as described in Section 4.2.

10.3 Indemnity

To the extent allowed by applicable law, Tenant will indemnify and hold harmless Landlord from claims, damages, and expenses arising out of Tenant’s use or occupancy of the Premises or Tenant’s activities on the Property, except to the extent caused by Landlord’s negligence or willful misconduct.

11. Taxes

Landlord is responsible for paying real property tax bills to the taxing authorities, but Tenant will reimburse Landlord for Tenant’s share of property taxes as provided in Section 4.1.

Any taxes or assessments separately imposed on Tenant’s personal property, signage, or specific Tenant improvements will be paid directly by Tenant or reimbursed to Landlord if Landlord pays them.

12. Assignment and Subletting

Tenant may not assign this Lease, sublet all or part of the Premises, or otherwise transfer its interest in this Lease without Landlord’s prior written consent, except as otherwise allowed in a separate written provision.

Any approved assignment or sublease will not release Tenant from Tenant’s obligations under this Lease unless Landlord expressly agrees in writing.

13. Default and Remedies

13.1 Tenant Default

Tenant will be in default under this Lease if:

• Tenant fails to pay Base Rent, Additional Rent (including taxes or insurance), or any other amount due within [Number] calendar days after receiving written notice of non-payment from Landlord; or

• Tenant materially breaches any other provision of this Lease and does not cure the breach within [Number] calendar days after receiving written notice from Landlord, or within a reasonable additional time if the breach cannot reasonably be cured within that period but Tenant promptly begins and diligently continues cure.

13.2 Landlord Remedies

Subject to applicable law and any required notice and cure periods, if Tenant is in default, Landlord may:

• Terminate this Lease and regain possession of the Premises;

• Re-enter and relet the Premises, applying net rent received from a new tenant against amounts owed by Tenant;

• Seek damages, unpaid sums, and other relief available at law or in equity.

14. Casualty and Condemnation

14.1 Casualty

If the Premises are damaged by fire or other casualty:

• Landlord will determine, within a reasonable period, whether the damage can reasonably be repaired within a practical timeframe.

• If repair is feasible, Landlord may repair the damage. Base Rent may be reduced in proportion to the degree Tenant’s use of the Premises is materially affected during repairs, to the extent not covered by business interruption insurance (if any).

• If the Premises are substantially damaged so that they cannot reasonably be repaired within a practical timeframe, Landlord or Tenant may have the right to terminate this Lease by written notice, effective as stated in that notice.

14.2 Condemnation

If all or a substantial part of the Premises is taken by eminent domain or similar authority, this Lease may terminate as of the date of taking or as otherwise provided in a written notice.

Any condemnation award relating to the land or building will generally belong to Landlord, except amounts specifically awarded to Tenant for Tenant’s personal property, trade fixtures, or relocation expenses.

15. Notices

All notices under this Lease must be in writing and delivered to the addresses or email addresses for Landlord and Tenant listed in Section 1, unless a party provides updated contact details in writing.

Permitted delivery methods include:

• Personal delivery

• Mail or reputable courier service

• Email, if the receiving party regularly uses email and agrees to receive notices electronically

16. Governing Law

This Lease is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules, unless the parties specify a different governing law here: [Alternative Governing Law].

17. Entire Agreement and Amendments

This Lease contains the entire agreement between Landlord and Tenant regarding the Premises and supersedes all prior or contemporaneous oral or written agreements concerning the same subject.

Any amendment or modification of this Lease must be in writing and signed by both Landlord and Tenant.

If any provision of this Lease is found invalid or unenforceable, the remaining provisions will continue in effect to the extent permitted by law.

Signatures

By signing below, Landlord and Tenant agree to be bound by the terms of this Double Net (NN) Lease Agreement.

Landlord:
Signature: _______________________________
Printed Name: [Landlord Full Legal Name or Authorized Signer]
Title (if business): [Title]
Date: [Date Signed by Landlord]

Tenant:
Signature: _______________________________
Printed Name: [Tenant Full Legal Name or Authorized Signer]
Title (if business): [Title]
Date: [Date Signed by Tenant]

Witnesses (If Used)

Witness 1:
Signature: _______________________________
Printed Name: [Witness 1 Full Legal Name]
Address: [Witness 1 Address]
Date: [Date Signed by Witness 1]

Witness 2 (if required):
Signature: _______________________________
Printed Name: [Witness 2 Full Legal Name]
Address: [Witness 2 Address]
Date: [Date Signed by Witness 2]

Notary Acknowledgment (If Required)

State/Province of [State/Province]
County of [County]

On [Notarization Date], before me, [Notary Full Name], a Notary Public, personally appeared [Landlord Full Legal Name or Authorized Signer] and [Tenant Full Legal Name or Authorized Signer], who proved their identities on the basis of satisfactory evidence and acknowledged that they executed this Double Net (NN) Lease Agreement for the purposes stated in it.

Notary Public Signature: _______________________________
Notary Public Printed Name: [Notary Full Name]
My Commission Expires: [Commission Expiration Date]
Notary Seal: ☐