What is a Retail Lease Agreement?
A retail lease agreement is a legally binding document that outlines the provisions, terms, and conditions of the lease. It is often known as a retail lease or lease contract that is crafted to establish the rights and responsibilities of both parties. The key elements of a retail lease agreement include,
1. Parties Information: Name of both the parties entering into the lease agreement.
2. Description of the Property: Space description including size, location, boundaries, and any common areas attach to the premises.
3. Lease Term: The time duration of the lease, along with any provision for renewal or termination.
4. Rent Structure: The agreement outlines the provision related to the amount of rent, payment structure and method, rent adjustments over the lease term, etc.
5. Improvements and Built-Ups: The agreement clarifies the improvements the landlord needs to make before the handover of the property.
6. Operating Expenses: The agreement mentions the name of the party responsible for paying the operating expenses such as property taxes, insurance, maintenance, utilities, and common area maintenance (CAM) fees.
7. Usage and Maintainance of the Premises: The agreement describes the permitted use of the retail space along with the provision of repair and maintenance.