Restaurant Lease (Net Lease for a Stand-Alone Building) (Pro-Landlord Long Form with Pro-Tenant Optional Provisions)

by Practical Law Real Estate

A Standard Document that is a long form, pro-landlord restaurant lease for a stand-alone building with pro-tenant optional provisions. This net lease agreement outlines the key terms and conditions for leasing a commercial property intended for restaurant operations. It establishes the framework for the landlord-tenant relationship, detailing obligations for Base Rent, Percentage Rent, and Additional Rent, which includes the tenant's responsibility for Operating Expenses and Real Estate Taxes. The lease addresses critical considerations unique to restaurant tenants, such as the Permitted Use, compliance with Liquor Control Laws, and specific operational standards outlined in a detailed Restaurant Rider covering requirements for exhaust systems, grease traps, and sanitation. This Standard Document also details provisions for the initial build-out, including the administration of a Tenant Improvement Allowance. Key provisions cover maintenance, insurance and indemnification, assignment and subleasing rights, and compliance with laws like the Americans with Disabilities Act. This Standard Document contains several optional, pro-tenant clauses for negotiation, addressing early termination rights, and a right of first offer to purchase. This Standard Document has integrated notes with important explanations and drafting and negotiating tips for both landlords and tenants.