Industrial Gross Lease Agreement Template

Industrial Gross Lease Agreement Template

This Industrial Gross Lease Agreement (the “Agreement”) is made and entered into as of [Date] (the “Effective Date”), by and between:

Landlord: [Full Legal Name / Business Name], mailing address: [Address].
Tenant: [Full Legal Name / Business Name], mailing address: [Address].

The Landlord and the Tenant may be referred to individually as a “Party” and collectively as the “Parties.”

1. Premises

1.1. Leased Premises. Landlord leases to Tenant the following industrial property (the “Premises”): [Full Property Address, Suite/Unit, City, State, ZIP].
1.2. Included Areas. The Premises includes: [warehouse area / office area / mezzanine / storage / yard space / loading docks / parking spaces].
1.3. Condition at Move-In. Tenant accepts the Premises in its current condition, except for agreed repairs listed here: [List or “None”].

2. Term

2.1. Start Date. The lease term begins on [Start Date].
2.2. End Date. The lease term ends on [End Date], unless earlier terminated under this Agreement.
2.3. Renewal Option. If agreed, Tenant may renew by giving written notice at least [X] days before the end date. Renewal terms: [describe rent adjustment and term length or “to be agreed in writing”].

3. Rent

3.1. Base Rent. Tenant will pay rent of [Amount] per month (the “Rent”).
3.2. Due Date. Rent is due on the [Day] of each month.
3.3. Payment Method. Rent must be paid by [check / bank transfer / payment portal] to [Payee/Payment Details].
3.4. Late Fees. If Rent is not paid within [X] days after the due date, a late fee of [Amount or %] applies.
3.5. Returned/Failed Payments. A fee of [Amount] may be charged for returned checks or failed payments.

4. Security Deposit

4.1. Deposit Amount. Tenant will pay a security deposit of [Amount] before move-in.
4.2. Use of Deposit. The deposit may be applied to unpaid rent, unpaid fees, damage beyond normal wear, excessive cleaning, or other lawful charges under this Agreement.
4.3. Deposit Return. The deposit will be returned within [X] days after move-out, minus lawful deductions, to the forwarding address provided by Tenant.

5. Permitted Use

5.1. Industrial Use. Tenant may use the Premises only for: [warehousing / distribution / light manufacturing / storage / assembly / office support] and any other use approved in writing by Landlord.
5.2. Compliance. Tenant must comply with all applicable laws, permits, zoning rules, fire and safety requirements, and building rules.
5.3. No Illegal or Nuisance Use. Tenant will not use the Premises for unlawful activities or in a way that unreasonably disturbs others.

6. Gross Lease Structure and Included Expenses

6.1. Gross Rent Concept. The Rent is intended to include certain operating expenses paid by Landlord, as listed below.
6.2. Landlord-Paid Included Expenses. Unless otherwise stated, Landlord will pay the following for the Premises:

• Property taxes and assessments

• Building property insurance (not Tenant’s business insurance)

• Common area maintenance for shared areas, if applicable

• Base building maintenance for structural components, as described in Section 8
  6.3. Excluded Expenses and Pass-Throughs. The following are not included in Rent unless specifically listed as included:

• Tenant’s utilities and service accounts

• Tenant’s janitorial, waste hauling, and pest control for the Premises

• Repairs needed due to Tenant’s misuse, negligence, or violations

• Costs caused by Tenant’s specific operations, equipment, or hazardous materials
  6.4. Increases and Adjustments. If the Parties agree that certain expense increases can be passed through to Tenant, list them here with the method and timing: [Describe or “None”].

7. Utilities and Services

7.1. Utilities Responsibility. Tenant is responsible for: [electric / gas / water / sewer / internet / phone] unless marked as included in Section 6.
7.2. Service Setup. Tenant will place utilities in Tenant’s name where possible and pay deposits required by utility providers.
7.3. Interruptions. Temporary interruptions for repairs or maintenance do not reduce rent, unless required by law.

8. Maintenance and Repairs

8.1. Tenant Responsibilities. Tenant will keep the Premises clean and safe and is responsible for routine interior maintenance and repairs, including: [doors used by Tenant / dock levelers used by Tenant / interior finishes / fixtures].
8.2. Landlord Responsibilities. Landlord is responsible for structural components and base building systems, such as: [roof / exterior walls / foundation], unless damage is caused by Tenant’s operations.
8.3. Equipment and Specialized Systems. Responsibility for the following is: [HVAC / sprinklers / roll-up doors / loading docks / forklift charging stations], as agreed here: [Landlord or Tenant].
8.4. Damage Reporting. Tenant must promptly notify Landlord of leaks, hazards, or conditions that could cause damage.

9. Alterations and Improvements

9.1. Approval Required. Tenant may not make alterations without Landlord’s prior written consent. This includes electrical upgrades, plumbing changes, ventilation modifications, or mounting equipment to walls or floors.
9.2. Permits and Contractors. Tenant is responsible for permits, licensed contractors, and code compliance for approved work.
9.3. Restoration. Landlord may require restoration at move-out, except for improvements Landlord agrees may remain.

10. Access, Loading, and Parking

10.1. Access Hours. Tenant may access the Premises during: [Days/Hours], subject to property rules and applicable laws.
10.2. Loading Areas. Tenant may use loading areas and docks as follows: [describe dock doors, staging rules, time limits].
10.3. Parking and Vehicles. Parking is permitted in: [designated spaces/areas]. Prohibited: [overnight trailer parking / idling / vehicle repairs], unless approved in writing.
10.4. Compliance with Routes and Safety. Tenant will follow posted traffic routes, safety rules, and weight limits.

11. Environmental, Hazardous Materials, and Safety

11.1. No Hazardous Materials Without Approval. Tenant will not store, use, or dispose of hazardous materials except as permitted by law and approved in writing by Landlord.
11.2. Spills and Incidents. Tenant must promptly report spills or incidents and take immediate steps required by law to contain and remediate.
11.3. Compliance Costs. Tenant is responsible for compliance related to Tenant’s operations. Landlord is responsible for base building compliance not caused by Tenant’s use, unless otherwise required by law.

12. Insurance and Liability

12.1. Tenant Insurance. Tenant will maintain commercial general liability insurance with minimum coverage of [Amount] per occurrence and property coverage for Tenant’s equipment and inventory.
12.2. Landlord Insurance. Landlord will maintain property insurance for the building as described in Section 6.2.
12.3. Proof of Insurance. Tenant will provide certificates of insurance upon request and upon renewal.
12.4. Indemnification. To the extent permitted by law, Tenant will indemnify and hold harmless Landlord from claims arising from Tenant’s negligence, Tenant’s operations, or Tenant’s breach of this Agreement.

13. Assignment and Subleasing

13.1. Consent Required. Tenant may not assign this Agreement or sublease the Premises without Landlord’s prior written consent.
13.2. Tenant Remains Responsible. Approval of a subtenant does not release Tenant from obligations unless Landlord agrees in writing.

14. Default and Remedies

14.1. Events of Default. Default includes unpaid rent, repeated late payments, illegal activity, serious safety violations, unauthorized hazardous materials, or other material breach of this Agreement.
14.2. Notice and Cure. Unless the breach is severe, the non-breaching Party may provide written notice and allow [X] days to cure.
14.3. Remedies. Landlord may pursue lawful remedies, including termination and recovery of lawful costs, as permitted by law.

15. Surrender and Holdover

15.1. Surrender. At the end of the lease, Tenant will vacate, remove personal property, return keys/access devices, and leave the Premises broom-clean and free of waste.
15.2. Holdover. If Tenant stays past the end date without written agreement, holdover rent will be [Amount or multiplier, such as 150% of Rent] per month (or the maximum allowed by law), and the tenancy will be treated as [month-to-month] unless prohibited by law.

16. Notices

16.1. Method. Notices must be in writing and delivered by: ☐ email ☐ certified mail ☐ personal delivery.
16.2. Notice Addresses.
Landlord: [Email and/or Mailing Address]
Tenant: [Email and/or Mailing Address]

17. Miscellaneous

17.1. Governing Law. This Agreement is governed by the laws of the State of [State].
17.2. Entire Agreement. This Agreement is the entire agreement between the Parties and replaces prior discussions.
17.3. Amendments. Any changes must be in writing and signed by both Parties.
17.4. Severability. If any provision is unenforceable, the remaining provisions remain effective.
17.5. Counterparts & E-Signatures. The Parties may sign in counterparts and electronically, if permitted.

18. Signatures

Landlord:
Signature: ___________________________
Name: [Name]
Title (if applicable): [Title]
Date: [Date]

Tenant:
Signature: ___________________________
Name: [Name]
Title (if applicable): [Title]
Date: [Date]

Witness (Optional):
Signature: ___________________________
Name: [Name]
Date: [Date]

Notary (Optional):
State of [State] )
County of [County] )
Subscribed and sworn before me on [Date], by [Name of Signer].
Notary Public Signature: ___________________________
My Commission Expires: ___________________________