Arizona Commercial Lease: Types, Key Terms To Know, Costs

An Arizona commercial lease is a legal contract that acts as an agreement between a landlord and a tenant regarding leasing property for business purposes. A commercial lease, once signed by both parties, becomes a legally binding agreement that can be enforced in court. In Arizona, there are specific laws that govern commercial leases in terms of zoning, taxation, and more. So, it is better to get the contract reviewed by an attorney before sealing it with a signature.

What to Expect When Signing a Commercial Lease Agreement in Arizona?

Below are some things you can expect when signing a commercial lease agreement in Arizona.

• Primary Property Disclosures to the Lessee

  Arizona property statute states that landlords are required to maintain their premises in a fit and habitable condition. At the same time, any custom work or change is not the owner's accountability and must be described in the lease contract.

  Since the Arizona Residential Landlord and Tenant Act defines different obligations to the lessor and lessee, a real estate developer should rationally use the services of a professional real estate lawyer in Arizona to ensure any leases signed before the realization of the project are realistic.

• Landlord Responsibility to Repair in Arizona

  Most leases demand the lessee to return the rental property to the lessor in a clean and livable state, except for "moderate wear and tear" at the completion of the lease period. Nevertheless, if the tenant harms the property, the lessor can seek damages from the lessee if those repairs or defects result from permanent damage to the real property.

• Tenant Ownership to Quiet Enjoyment

  Arizona lessors must include a statement regarding a tenant's right to quiet enjoyment in their lease agreements. The term quiet enjoyment implies that the tenant cannot be bothered or stopped from using the leased premises completely.

• Ability to Assign or Sublease Commercial Lease in Arizona

  Unless a lessor expressly prohibits an assignment or sublease of the commercial property a commercial lessee holds the privilege to sublease or transfer the lease to another individual (depending on specific Arizona prerequisites). While uncommon, you might find an undesired company or lessee inhabiting the commercial property.

  Hence, adding a clause demanding landlord consent for any assignment or sublease can give you better peace of mind and keep the judgment in your hands.

Landlord’s Legally-Required Disclosures

Landlords in Arizona must include disclosures like lead hazards, material facts, and regulations.

• Lead-Based Paints

  Lead-Based Paints are hazardous for humans, especially children, and pregnant women. While leasing commercial spaces built before 1978, a landlord must include a lead-based paint hazard disclosure in the agreement and whether the building has lead paint.

• Material Facts

  Landlords in Arizona must disclose any material facts about the property, which may interfere with the normal commercial use of the property.

• Zoning, Restrictions, and Taxes

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Any local zoning laws, taxation issues, use restrictions, or other regulatory requirements that affect the commercial rental property must be disclosed in the agreement.

Need Help With Your Commercial Lease Agreement?

It is essential that you work with professional attorneys to review your lease contract and guarantee that your privileges and interests are guarded.

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