Alabama Commercial Triple Net Lease Agreement

Lease office, retail or other business premises to a tenant with this Alabama Commercial Triple Net Lease Agreement.

This MS Word template is designed for leasing office, retail, or other business premises, and outlines the specific responsibilities of both the landlord (lessor) and tenant (lessee) in a commercial leasing situation.

Triple Net Lease Structure

Under this agreement, the lessee assumes responsibility for all costs and expenses associated with the premises, including structural repairs. This arrangement is referred to as a "triple net lease," meaning the tenant covers virtually all operational costs in addition to the base rent.

Renewal Option

The lessee has the option to renew the lease for an additional term, enabling continued occupancy under the same or renegotiated terms.

Payment of Taxes and Charges

The lessee is obligated to pay all expenses, taxes, levies, and charges related to the premises. This includes all utilities, services, and operating expenses necessary for the conduct of their business.

Insurance Requirements

It is the lessee’s responsibility to maintain appropriate insurance coverage. The required coverage includes fire insurance, extended coverage, and liability insurance for the duration of the lease.

Alterations, Improvements, and Repairs

The lessee is responsible for all alterations, improvements, maintenance, and repairs to the premises. This ensures the property is kept in good condition and all modifications are managed by the tenant.

Damage or Destruction

The agreement contains clauses that address scenarios involving damage, destruction, or condemnation of the building. These clauses specify the procedures for abatement of rent or possible termination of the lease in such events.

Subordination

The lessee agrees to execute a subordination agreement or any other documents required to subordinate the lease to a mortgage or other encumbrance, if requested by the lessor. This provision ensures the lease is subordinate to the lessor’s financing arrangements.

Additional Rent

An optional clause allows for the inclusion of percentage rent in addition to the base rent, should this be applicable. This enables the landlord to receive a portion of the tenant’s business income as additional rent.

Jurisdiction

This Triple Net Lease is intended for use only in the State of Alabama.