Arkansas Commercial Lease Agreement
Its a legal contract setting terms between a commercial tenant (lessee) and a landlord (lessor) for rental retail, industrial, or office space.3 min read
The Arkansas Commercial Lease Agreement is a legal contract setting terms between a commercial tenant (lessee) and a landlord (lessor) for rental retail, industrial, or office space. While there is no minimum or maximum for lease length, they are generally one to three years.
Understanding the obligations of the agreement is the responsibility of both parties, and the importance of this understanding cannot be overstated. Prior to signing, it is a best practice and prudent for the parties to seek individual review of the contract by their attorneys. Once signed, the Arkansas court considers a commercial lease agreement to be a legally binding contract.
All parties are subject to the terms of the contract from the defined start date to the termination date specified in the agreement.
There are generally three types of commercial lease agreements, described below:
- Gross Lease — The rent tenant pays to landlord in an amount and schedule specified in the terms of the agreement.
- Modified Gross — The rent tenant pays to landlord in an amount and schedule specified in the terms of the agreement with the addition of other expenses, such as utilities.
- Triple Net — The rent tenant pays to landlord in an amount and schedule specified in the terms of the agreement with the addition of all other expenses related to the property, such as utilities, taxes, maintenance, and insurance.
Example of an Arkansas Commercial Lease Agreement Template
- Parties — The lease agreement is between Lessor __________ (hereafter referred to as the “Landlord”) and Lessee _________ (hereafter referred to as the “Tenant”).
- Premises — Property / space to be leased: __________________ (hereafter referred to as the “Premises”).
- Rented Space — Space mentioned above is _________________________ square feet (SF).
- Lease Term — Lease will be for a length of _____ years starting on the _____ day of _____________, 20_____ and ceasing on the ________ day of _______________, 20____.
- Rent — Rent of $_____ or $_____/SF is due on the ____ each month. Check one:
- _____ Rent increases _____ percent annually.
- _____ Rent increases _____.
- _____ Rent will stay fixed for term of lease.
- Common Spaces — Tenant and those employed by them are allowed to utilize noted common spaces with other tenants of the landlord:
- _____ Parking stalls or _____ parking stall.
- _____ Bathrooms.
- _____ Storage space.
- _____ Exits and Entrances.
- _____ Meeting/Conference areas.
- _____ Garbage.
- _____ Kitchen.
- _____ Other.
- Renewing Lease (select one):
_____ Lease can be renewed by tenant for _____ year(s) if conditions stated are met: _______________________________________________________________
_____ Tenant is unable to renew lease.
- Security Deposit — Tenant is to pay $_______ for security deposit. If terms of lease are met in good faith by tenant and no damage is done to premises, said deposit will be refunded within 10 business days. Any repairs required for Premises will be deducted from Security Deposit.
- Move-In Condition (select one):
- _____ Tenant accepts occupancy “as is” and understands all fit-ups will be done at tenant expense.
- _____ Landlord will accept financial responsibility for fit-ups and improvements:
- _____ Via addendum.
- _____ Other: ______________________________________________.
- Improvements During Lease — The Tenant may, with written consent from Landlord, make improvements to Premises at expense of the Tenant.
- Use — Tenant is to occupy Premises for the following use: ________________________________.
- Utilities — Select who is responsible for each of the following:
- Air Conditioning _____ Landlord _____ Tenant
- Cable _____ Landlord _____ Tenant
- Electric _____ Landlord _____ Tenant
- Gas _____ Landlord _____ Tenant
- Heat _____ Landlord _____ Tenant
- Internet _____ Landlord _____ Tenant
- Oil _____ Landlord _____ Tenant
- Sewer _____ Landlord _____ Tenant
- Water _____ Landlord _____ Tenant
- Other _____ Landlord _____ Tenant
- Representations of Landlord — On date lease is signed, Premises will be zoned properly and compliant for all state and federal regulations and laws for stated use in Section XI. Landlord confirms Premises have not been a disposal or storage site for hazardous or toxic substances, nor has Landlord received any government notice of any hazardous or toxic removal from Premises.
- Responsibility of Landlord — Maintain and make necessary repairs to:
- Structural components, roof, outside walls, and common inside walls.
- Electrical, plumbing, ventilation, air conditioning systems, and ventilation and heating.
- Responsibility of Tenant — Confirm Premises are maintained, cleaned, and kept in marketable condition.
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