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Prepared by: Agent
Broker
Phone
Email
COMMERCIAL LEASE AGREEMENT
Gross — Single Tenant
NOTE: This form is used by a leasing agent or landlord when the entire space in a commercial property is leased by one
tenant for a fixed-term, to grant the tenancy and set the terms for rent, impose payment of utilities and janitorial expenses
on the tenant with the landlord responsible for maintenance and carrying costs of the property.
DATE: , 20 , at , California.
Items left blank or unchecked are not applicable.
1. FACTS:
1.1 , as the Landlord,
leases to , as the Tenant,
the Premises referred to as ,
which is part of the Project known as .
1.2 Landlord acknowledges receipt of $ to be applied as follows:
�Securitydeposit......................................................$
�Firstmonth'srent.....................................................$
� $
1.3 The following checked addenda are part of this lease agreement:
�Addendum—Lease/Rental[SeeRPIForm550-1] �OptiontoRenew/ExtendLease
�BrokerFeeAddendum[SeeRPIForm273] [SeeRPI Form 565]
�ConditionofPremisesAddendum[SeeRPIForm560]�OptiontoPurchase[SeeRPI Form 161 & 161-1]
�Tenant'sPropertyExpenseProfile[SeeRPIForm562]�Optiontoleaseadditionalspace
�Propertydescription �Buildingrules
�Platmapofleasedspace �
2. TERM OF LEASE:
2.1 The lease granted commences _____________, 20______, and expires _____________, 20______.
a. The month of commencement is the anniversary month.
2.2 The lease terminates on the last day of the term without further notice.
2.3 If Tenant holds over, the monthly rent will be increased to 120% of the monthly rent applicable immediately
precedingtheterminationofthisleaseagreement,proratedat1/30thofthemonthlyrentforeachdayuntilthe
Premises is delivered to Landlord.
2.4 TenantmaysurrenderthisleaseonlybyawrittensurrenderagreementwithLandlord.[SeeRPI Form 587]
2.5 �ThisleaseagreementisasubleaseofthePremiseswhichislimitedinitstermsbythetermsandconditionsof
the attached master lease agreement.
3. POSSESSION:
3.1 Possession to be delivered to Tenant and Tenant to take possession � on commencement of the lease, or
�on_____________,20______.
3.2 If Landlord is unable to recover and deliver possession of the Premises from the previous tenant, rent will not
accrue and Tenant will not be liable for rent until possession is delivered.
3.3 Tenant may terminate the lease if Landlord does not deliver possession within 10 days after commencement of
the lease.
3.4 If Landlord is unable to deliver possession of the Premises, Landlord will not be liable for any damages.
4. RENT:
4.1 Tenant to pay rent monthly, in advance, on the first day of each month, including rent for any partial month pro
ratedat1/30thofthemonthlyrentperday.
a. Tenant to pay additional rent due as called for in this lease agreement
4.2 Renttobeginaccruing�oncommencementofthelease,or�on , 20 .
4.3 FIXED RENT:�Monthlyrentfortheentiretermisfixedat$ .
4.4 GRADUATED RENT: �Monthlyrent,fromyeartoyear,isgraduatedonanniversarymonthsasfollows:
Initialyear'smonthlyrenttobe$ , and continues until:
a. � % increase in monthly rent over prior year’s monthly rent for years to ________,
% increase in monthly rent over prior year’s monthly rent for years to ________,
% increase in monthly rent over prior year’s monthly rent for years to ________,
b. �Monthlyrentcommencingonthe_______anniversarytobe...................$_____________,
Monthly rent commencing on the _______ anniversary to be . . . . . . . . . . . . . . . . . . . $_____________,
Monthly rent commencing on the _______ anniversary to be . . . . . . . . . . . . . . . . . . ..$_____________,
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4.5 CPI ADJUSTED RENT: � Monthly base rent for the initial 12 months of the term is the amount of
$_______________, adjusted annually on the first day of each anniversary month by increasing the initial
monthly base rent by the percentage increase between the applicable Consumer Price Index for All Urban
Consumers (CPI-U) figures published for the third month preceding the month of commencement and the third
month preceding the anniversary month.
a. The applicable CPI-U (1982-1984 = 100) is:
�LosAngeles-Riverside-OrangeCounty,�SanFrancisco-Oakland-SanJose
�SanDiego,�National,� .
b. Annual rent increases under CPI-U adjustments are limited to an increase of ______%.
c. On any anniversary adjustment, if the CPI-U has decreased below the CPI-U for the prior 12-month period,
the monthly rent for the ensuing 12 months will remain the same as the rent during the prior 12 months.
d. If the CPI-U is changed or replaced by the United States Government, the conversion factor published by
the Government on the new Index will be used to compute annual adjustments
e. Following each _____-year period after commencement, including any extensions and
renewals, the monthly rent is to be adjusted upward to current market rental rates for comparable premises.
Computation of any future annual CPI-U adjustments in monthly rent on each anniversary month after
adjustment to current market rental rates will treat the monthly rent for the initial 12 months of each market
rent adjustment as the initial monthly base rent, and treat the first month of each market rent adjustment as
the month of commencement for selecting the Index figures. Landlord to reasonably determine and advise
Tenant of the adjusted rental rates no less than 3 months prior to the effective date of the adjustment.
4.6 Rent to be paid by:
a. �check,�cash,or�cashier'scheck,madepayabletoLandlordor .
Personal delivery of rent to be during the hours of to atPayee'saddress
on the following days .
b. �creditcard# / / / ; expiration date , 20 ;
security code which Landlord is authorized to charge each month for rent due.
c. �depositintoaccountnumber
routing number
at (Financial Institution)
(Address)
d. � .
4.7 Tenanttopayachargeof�$_______________,or�______%ofthedelinquentrentpayment,asanadditional
amountofrent,dueondemand,intheeventrentisnotreceivedwithin�5days,or�______________days,
after the due date.
4.8 If any rent or other amount due Landlord is not received within the grace period provided in Section 4.7, interest
will accrue from the due date on the amount at 18% per annum until paid. On receipt of the payment of any
delinquentrent,Landlordtopromptlymakeawrittendemandforpaymentoftheaccruedinterestwhichwillbe
payable within 30 days of the demand.
4.9 Tenant to pay a charge of $_______________ as an additional amount of rent, due on demand, for each rent
check returned for insufficient funds or stop payment, in which event Tenant to pay rent when due for each of the
3 following months by cash or cashier’s check.
5. OPERATING EXPENSES:
5.1 Tenant is responsible for payment of utility and service charges as follows:
.
5.2 Landlord is responsible for payment of utility and service charges as follows:
.
5.3 Tenantwill,onrequestofLandlord,authorizetheirutilitycompaniestoreleaseenergyconsumptiondatadirectly
toLandlordforLandlord'sDataVerificationChecklistusedforenergybenchmarkingpurposesand,uponfurther
request,provideenergyconsumptiondataonthePremises.[SeeRPI Form 552-9]
5.4 Tenant to pay all taxes levied on trade fixtures or other improvements Tenant installs on the Premises.
5.5 If Landlord pays any charge owed by Tenant, Tenant will pay, within 30 days of written demand, the charge as
additional rent.
5.6 Landlord to pay all real property taxes and assessments levied by governments, for whatever cause, against the
land, trees, tenant improvements and buildings within the Project containing the Premises, excluding those to be
paid by Tenant under Section 5.4.
6. REPAIR AND MAINTENANCE:
6.1 ThePremisesareingoodcondition,�exceptasnotedinanaddendum.[SeeRPI Form 550-1]
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6.2 Tenant will keep the Premises and its improvements in good order, condition and repair, including all fixtures
relatedtoplumbing,HVACcomponents,electrical,lighting,and�
.
a. �Seeattachedmaintenancemodificationaddendum.[SeeRPI Form 552-6]
6.3 Except as stated in Section 6.2, Landlord will maintain in good order, condition and repair the structures and
commonareacomponentsandequipmentwithinthePremiseswhichexistonthecommencementofthislease
agreement, including but not limited to existing HVAC, plumbing and sewers, electrical systems, structural
foundations, exterior walls, store front, plate glass in exterior walls, roof, government-mandated retrofitting,
parkingareas,lawnsandshrubbery,sidewalks,driveways/rightofways,and�
.
7. USE OF THE PREMISES:
7.1 TheTenant'suseofthePremiseswillbe .
7.2 NootheruseofthePremisesispermitted.
a. Tenant may not conduct any activity which increases Landlord’s insurance premiums.
7.3 Tenant will not use the Premises for any unlawful purpose, violate any government ordinance or building and
tenant association rules, or create any nuisance.
7.4 Tenantwillnotdestroy,damage,orremoveanypartofthePremisesorequipment,orcommitwaste,orpermit
any person to do so.
7.5 Tenant will deliver the Premises, including tenant improvements as noted in Section 11.3 and all keys to the
Premises, on expiration of the lease in as good a condition as when Tenant took possession, except for reasonable
wear and tear.
7.6 Landlord warrants that the Premises comply with building codes, regulations and zoning that were in effect at the
time each improvement, or portion thereof, was constructed. Said warranty does not apply to Tenant’s intended
useofthePremises,modificationswhichmayberequiredbytheAmericanswithDisabilitiesAct(ADA)orany
similar laws as a result of Tenant’s use.
7.7 Tenant is responsible for determining whether the building codes, zoning and regulations are appropriate for
Tenant’s intended use.
7.8 If the Premises do not comply with these warranties, Tenant is to give Landlord written notice specifying the
nature and extent of such non-compliance, and Landlord is to promptly correct the non-compliance at Landlord’s
expense. If Tenant does not give Landlord written notice of the non-compliance with this warranty within 6 months
following the commencement date, Tenant, at Tenant’s expense, will correct the non-compliance
7.9 ThePremises�has,�hasnot,beeninspectedbyaCertifiedAccessSpecialist(CASp).
a.Ifinspected,thePremises�has,�hasnot,beendeterminedtomeetallapplicablestandardsunder
Calif. Civil Code §1938 and §55.53.
8. APPURTENANCES:
8.1 Tenant has the right to use Landlord’s access of ingress and egress.
8.2 Tenant has the use of the entire Premises within the property’s legal description.
9. ASSIGNMENT, SUBLETTING AND ENCUMBRANCE: [Checkonlyone]
9.1 �TenantmaynotassignthisleaseorsubletanypartofthePremises,orfurtherencumbertheleasehold.
9.2 �TenantmaynottransferanyinterestinthePremiseswithoutthepriorconsentofLandlord.
a.�Consentmaynotbeunreasonablywithheld.
b.�Consentissubjecttotheattachedalienationprovisions.[SeeRPI Form 552-7]
10. SIGNS AND ADVERTISING:
10.1 Tenant will not construct any sign or other advertising on the Premises without the prior consent of Landlord.
10.2 � Landlord will maintaina directory inthe lobby ofthe Premises displayingthe name andsuite number of
Tenant. Landlord has the right to determine the size, shape, color, style and lettering of the directory.
10.3 �Landlord willprovidea signtobe placedonthe primarydoortoTenant’s suite.The feesforthe costand
installation will be paid by Tenant.
11. TENANT IMPROVEMENTS/ALTERATIONS:
11.1 Tenant may not alter or improve the Premises without Landlord’s prior consent to include tenant improvements
necessary for Tenant to occupy.
a. Tenant will keep the Premises free of all claims for any improvements and will timely notify Landlord to
permitpostingofNoticesofNonresponsibility.[SeeRPI Form 597]
11.2 Any increases in Landlord’s property taxes caused by improvements made by Tenant will become additional rent
due on demand.
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11.3 On expiration of this lease, tenant improvements as authorized by Landlord are to:
a. �becomefixturesandpartofthePremisesnottoberemovedbyTenant.
b. �beremovedbyTenantintheirentirety.
c. �bepartiallyremovedbyTenantasfollows:
.
12. RIGHT TO ENTER:
12.1 TenantagreestomakethePremisesavailableon24hours'noticeforentrybyLandlordfornecessaryrepairs,
alterations, or inspections of the Premises.
13. LIABILITY INSURANCE:
13.1 Tenant will obtain and maintain commercial general liability and plate glass insurance coverage insuring Tenant
and Landlord against all claims for bodily injury, personal injury and property damage arising out of Tenant’s use
of the Premises.
13.2 Tenant to obtain insurance for this purpose in the minimum amount of $ .
13.3 Tenant to provide Landlord with a Certificate of Insurance naming Landlord as an additional insured. The
Certificate is to provide for written notice to Landlord if a change or cancellation of the policy occurs.
13.4 Each party waives all insurance subrogation rights they may have.
14. FIRE INSURANCE:
14.1 Tenant will obtain and maintain a standard fire insurance policy with extended coverage for theft and vandalism
for100%ofthereplacementvalueofallTenant'spersonalpropertyandtherestorationoftenantimprovements.
15. HOLD HARMLESS:
15.1 Tenant will hold Landlord harmless for all claims, damages or liability arising out of the Premises caused by
Tenant or its employees or patrons.
16. DESTRUCTION:
16.1 In the event the Premises are totally or partially destroyed, Tenant agrees to repair the Premises if the destruction
iscausedbyTenantorcoveredbyTenant'sinsurance.
16.2 Landlord will repair the Premises if the cause is not covered by Tenant’s insurance policy and is covered by
Landlord’s insurance policy.
16.3 This lease agreement may not be terminated due to any destruction of the Premises, unless:
a. the repairs cannot be completed within 30 days;
b. the cost of restoration exceeds 70% of the replacement value of the premises;
c. the insurance proceeds are insufficient to cover the actual cost of the repairs; or
d. the Premises may not be occupied by law.
17. SUBORDINATION:
17.1 Tenant agrees to subordinate the leasehold estate to any new financing secured by the Premises which does
not exceed 80% loan-to-value ratio, and interest of 2% over market, and not less than a 15-year monthly
amortization and 5-year due date.
18. TENANT ESTOPPEL CERTIFICATES:
18.1 Within 10 days after notice, Tenant will execute a Tenant Estoppel Certificate verifying the existing terms of the
leaseagreementtobeprovidedtoprospectivebuyersorlenders.[SeeRPI Form 598]
18.2 Failure by Tenant to deliver the Certificate to Landlord will be conclusive evidence the information contained in
the Certificate is correct.
19. EMINENT DOMAIN:
19.1 In the event a portion or all of the Premises is condemned for public use, Landlord may terminate the lease and
Tenant’s possession. If the lease is not terminated, Tenant will receive a rent abatement for the actual reduction
(if any) in the value of the leasehold interest held by Tenant.
19.2 Tenant waives the right to any compensation awarded from the condemning authority for the whole or partial
taking of the Premises.
19.3 Tenant to be compensated by the condemning authority only for the tenant improvements paid for by Tenant.
20. WAIVER:
20.1 Waiverofabreachofanyprovisioninthisleaseagreementdoesnotconstituteawaiverofanysubsequent
breach.
20.2 Landlord’s receipt of rent with knowledge of Tenant’s breach does not waive Landlord’s right to enforce the
breach.
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21. DEFAULT REMEDIES:
21.1 If Tenant breaches any provision of this lease agreement, Landlord may exercise its rights, including the right to
collect future rental losses after forfeiture of possession.
22. BROKERAGE FEES:
22.1 �LandlordandTenanttopayBrokerfeespertheattachedScheduleofLeasingAgent’sFee.[SeeRPI Form
113]
23. MISCELLANEOUS:
23.1 �Seeattachedaddendumforadditionalterms.[SeeRPI Form 550-1]
23.2 In any action to enforce this lease agreement, the prevailing party is entitled to receive attorney fees.
23.3 This lease agreement is binding on all heirs, assigns and successors except as provided in Section 9.
23.4 This lease agreement is to be enforced under California law.
23.5 This lease agreement reflects the entire agreement between the parties.
23.6 �Thisleaseagreementissecuredbyatrustdeed.[SeeRPI Form 451]
23.7 �TheperformanceofthisleaseagreementisassuredbyaGuaranteeAgreement.[SeeRPI Form 553-1]
23.8 Ifleaseexceedsoneyear,TenantandLandlordacknowledgereceiptoftheAgencyLawDisclosure.[SeeRPI
Form 550-2]
23.9 Notice:�Landlordhasactualknowledgethepropertyislocatedinaspecialfloodhazardareaoranareaof
potential flooding. Tenant may obtain information about flood and other hazards at http://myhazards.caloes.
ca.gov/.Landlord'sinsurancedoesnotcoverTenant’spossessions.Tenantmaypurchaserenter’sinsuranceand
floodinsurancetoinsuretheirpossessionsfromloss.Landlordisnotrequiredtoprovideadditionalinformation
about flood hazards beyond this notice.
24.
FORM 552 01-19 ©2019 RPI — Realty Publications, Inc.,P.O.BOX5707,RIVERSIDE,CA92517
I agree to let on the terms stated above.
Date: , 20
Landlord:
Signature:
Landord'sBroker:
Broker'sDRE#:
is the broker for: �Landord
�bothTenantandLandlord(dualagent)
Landord'sAgent:
Agent'sDRE#:
is �Landord's agent (salesperson or broker-associate)
�bothTenant'sandLandlord'sagent(dualagent)
Signature:
Address:
Phone: Cell:
Email:
I agree to occupy on the terms stated above.
Date: , 20
Tenant:
Signature: ______________________________________
Tenant:
Signature: ______________________________________
Tenant'sBroker:
Broker'sDRE#:
is the broker for: �Tenant
�bothTenantandLandlord(dualagent)
Tenant'sAgent:
Agent'sDRE#:
is �Tenant's agent (salesperson or broker-associate)
�bothTenant'sandLandlord'sagent(dualagent)
Signature:
Address:
Phone: Cell:
Email: