This Offer to Lease Commercial Premises document is a binding legal agreement that
sets out the key terms of a commercial lease agreement. It is important to thoroughly
document real property transactions in writing and to ensure a clear understanding
between the parties. This document in its draft form contains numerous of the standard
clauses commonly used in these types of contracts, as well as optional language to
allow for customization to ensure the specific terms of the parties agreement are
addressed. Use this document if a landlord or property owner wants to lease out their
property.
Offer to Lease
TO: _____ [Instruction: Insert Landlord’s name.] (the “Landlord”)
DATE: _____ [Instruction: Insert offer date.]
_____ [Instruction: Insert Tenant’s name.] (the “Tenant”) hereby offers to lease from the
Landlord the premises known municipally as _____ [Instruction: Insert legal address of
property intended to be leased.] being a _____ [Instruction: Insert brief description of
property intended to be leased, including suite number, if applicable. If additional land,
storage space, parking spaces or other areas are intended to be included in the proposed
lease, include brief description of same as well.] of approximately _____ [Instruction: Insert
approximate size of space intended to be leased, including any applicable number or size of
additional land, storage space, parking space or other areas.] (the “Premises”) in the
building [Comment: If additional premises are included other than space within a building,
conform this sentence to mention and include same.] (the “Building”) situated thereon, upon
and subject to the following terms and conditions:
1. Term. The term of the lease (the “Term”) shall be _____ [Instruction: Insert length of
lease term.] commencing on _____ [Instruction and Comment: Insert proposed lease
start date. If this commencement date will be subject to some other occurrence, for
example, certain completion status of a build out, same should be referenced here.]
(the “Commencement Date”) through and including _____ [Instruction: Insert
proposed lease end date.], unless otherwise terminated or extended pursuant to the terms
of a lease to be entered into between Landlord and Tenant.
2. Rental. The annual rental (“Rent”) for the Term shall be _____ [Instruction: Insert
rental amount.] payable in equal monthly installments of _____ [Instruction and
Comment: Insert monthly rental amounts. If Rent is not to be payable in equal
monthly installments, or if Rent shall include some portion payable as a percentage
of profits, this sentence should be conformed to reflect same. It would be advisable
in such instance to include a Rent schedule as an attachment, incorporated by
reference into this document.] in advance on the first day of each month commencing
on the Commencement Date. The Tenant shall also pay all realty taxes and business
taxes, associated with the Premises, as well as all taxes duly owed by Tenant with respect
to its conduct of business or otherwise, to any lawful governmental entity levying such
tax, as well as all charges for heating, water, electricity, fire insurance, public liability
insurance, maintenance, landscaping and snow removal costs, if any, associated with the
Premises, including all repairs to the Building (reasonable wear and tear excluded) save
and except for structural repairs or repairs of a capital nature, it being understood that the
Rent shall be net to the Landlord. [Comment: If any of the utility or other charges are
not separately metered, parties will need to consider how such charges will be split.
In certain instances, for example, in condominium situations, such charges are
generally payable based on the pro rata share associated with the premises being
leased. However, this type of split does not always take into consideration future use
of a particular premises-take for instance, a spa being operated within a
condominium. Based on the nature of its use, a spa would naturally use more hot
water than perhaps its pro rata share would normally account for, and therefore, in
an instance of charges being split solely on the pro rata share, the spa would not be
paying its fair share of the water bill.]
3. Option to Renew. Provided that the Tenant is not in default under the lease, the Tenant
shall have the option, exercisable upon no less than six (6) months prior written notice to
the Landlord, to renew the Term for one further term of _____. [Instruction: Insert
length of permitted additional term.] The terms and conditions of the renewal term
shall be the same as in the original Term except as to Rent which shall be agreed to
between the Landlord and the Tenant, and except as to any further rights of renewal. In
the event that the Landlord and Tenant are unable to agree on the Rent for a renewal
term, the matter will be submitted to arbitration pursuant to the applicable law then in
effect.
4. Deposit. The Tenant hereby submits a check in the sum of _____ [Instruction: Insert
deposit amount.] payable to the Landlord as a deposit pending completion or other
termination of this Offer to be applied against the first month’s Rent of the initial Term.
Upon acceptance of this Offer by the Landlord, the Tenant will provide the Landlord with
the further sum of _____ [Instruction: Insert additional deposit sum.] as a further
deposit pending completion or other termination of this Offer to be applied against the
last month’s Rent of the Term. Any such deposits shall be deposited in one or more
interest bearing account(s), at a banking institution licensed to conduct business in the
jurisdiction in which it operates, and which account (s) (or all of which, as the case may
be) shall be insured by the Federal Deposit Insurance Corporation (the “FDIC”). No such
account(s) shall at any time exceed the applicable insurable limits set by the FDIC. In the
event that this transaction is not completed in accordance with the terms and conditions
hereof or t