Gross Lease Agreement Template

Gross Lease Agreement Template

This Gross 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 under this Lease.

3. Rent (Gross Rent)

3.1 Base Rent

Tenant will pay to Landlord base rent (“Base Rent”) for the Premises as follows:

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

Unless otherwise stated in this Lease, Base Rent is intended to include Landlord’s cost of ordinary building operating expenses such as property taxes, building insurance, and common area maintenance.

3.2 Payment

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

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. Utilities and Services

4.1 Utilities

Check and complete the applicable structure:

• ☐ Landlord Included Utilities: Base Rent includes the following utilities and services for the Premises: [Included Utilities and Services].

• ☐ Tenant Paid Utilities: The following utilities will be separately metered or billed to Tenant, and Tenant will pay them directly to the provider or reimburse Landlord: [Tenant-Paid Utilities].

4.2 Shared Utilities

If any utilities serving the Premises are not separately metered, Tenant will pay a fair share of such utilities as reasonably allocated by Landlord, based on floor area, usage, or other reasonable allocation method.

4.3 Janitorial and Other Services

Unless otherwise stated here, the following applies:

• Landlord-Provided Services: [Landlord-Provided Services, if any].

• Tenant-Provided Services: [Tenant-Provided Services, if any].

5. 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 Tenant’s 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.

6. Use of Premises

Permitted Use: [Permitted Use Description]

Tenant will:

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

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

• Follow any reasonable building rules and regulations provided or updated by Landlord in writing.

• Not cause a nuisance, hazardous condition, or unreasonable disturbance to other occupants of the Property.

7. Maintenance and Repairs

7.1 Tenant Responsibilities

Tenant will, at Tenant’s expense:

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

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

7.2 Landlord Responsibilities

Landlord will, subject to the gross rent structure:

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

• Maintain and repair common areas of the Property, including parking areas, driveways, sidewalks, and shared building systems serving multiple tenants, such as common plumbing, electrical, and HVAC systems, unless the parties agree otherwise in writing.

8. 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 by this Lease, and in accordance with applicable laws and any design or construction standards provided by Landlord.

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, provided Tenant repairs any damage caused by removal.

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

9. Insurance and Indemnity

9.1 Tenant Insurance

Tenant will maintain, at Tenant’s expense:

• 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 such other limits reasonably required by Landlord.

• Property insurance covering 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.

9.2 Landlord Insurance

Landlord will maintain property insurance for the building and common areas, in types and amounts selected by Landlord. The cost of this insurance is generally included in Landlord’s building operating costs that are factored into Base Rent under the gross lease structure.

9.3 Indemnity

To the extent permitted 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 at the Property, except to the extent caused by Landlord’s negligence or willful misconduct.

10. Taxes

Landlord is responsible for payment of real property taxes and assessments on the Property, subject to the gross rent structure of this Lease.

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

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

12. Default and Remedies

12.1 Tenant Default

Tenant will be in default under this Lease if:

• Tenant fails to pay Base Rent or any other amount due under this Lease within [Number of Days] 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 of Days] 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.

12.2 Remedies

Subject to applicable law and any required notice or 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 to Tenant’s obligations;

• Seek damages or other remedies available at law or in equity.

13. Casualty and Condemnation

13.1 Casualty

If the Premises are damaged by fire or other casualty:

• Landlord will evaluate whether the damage can reasonably be repaired within a reasonable period of time.

• If repairs can be made within that period, Landlord may repair the damage, and Base Rent may be fairly reduced if Tenant’s use of the Premises is materially affected during repair.

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

13.2 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 award for the taking will generally belong to Landlord, except amounts specifically awarded to Tenant for Tenant’s personal property, trade fixtures, or relocation expenses.

14. Notices

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

Permitted delivery methods may include:

• Personal delivery;

• Mail or courier service;

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

15. 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].

16. 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 relating to 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.

17. Signatures

By signing below, Landlord and Tenant agree to be bound by the terms of this Gross Lease Agreement.

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

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

Witnesses (If Used)

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

Witness 2 (if required):
Signature: _______________________________
Printed Name: [Witness 2 Full 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 Gross 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: ☐