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

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers (Arizona)

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.

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G'day, my name is Michele! I work with startups, entrepreneurs and small/medium-sized businesses across the country in a wide array of industries. I help them with all of their ongoing, daily legal needs. This includes entity formation, M&A, contract drafting and review, employment, asset sale & acquisition, and business sales or shareholder exits. I'm half-Australian, half-Italian, and I've lived the last 20+ years of my life in America. I've lived all over the USA, completing high school in the deep south, graduating cum laude from Washington University in St. Louis, and then cum laude from Georgetown University Law Center. After law school I worked for the Los Angeles office of Latham & Watkins, LLP. After four intense and rewarding years there, I left to become General Counsel and VP of an incredible, industry-changing start-up called Urban Mining Company (UMC) that manufactures rare earth permanent magnets. I now work for Phocus Law where I help run our practice focused on entrepreneurs, startups, and SMEs. I love what I do, and I'd love to be of help! My focus is on providing stress-free, enjoyable, and high-quality legal service to all of my clients. Being a good lawyer isn't enough: the client experience should also be great. But work isn't everything, and I love my free time. I've been an avid traveler since my parents put me on a plane to Italy at 9-months old. I'm also a music nut, and am still looking for that perfect client that will engage me to explain why Dark Side Of The Moon is the greatest album of all time. Having grown up in a remote, and gorgeous corner of Australia, I feel a strong connection to nature, and love being in the elements.

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Commercial Real Estate

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Maryland

Asked on Apr 27, 2023

What are the notice requirements for terminating the lease?

I am a business owner who recently signed a commercial lease for a property. I am looking to terminate the lease but am unsure of the notice requirements I must adhere to in order to do so. I would like to know what the notice requirements are for terminating the lease so that I can ensure I do not breach the terms of the lease.

Michael C.

Answered Jun 1, 2023

The notice requirements for terminating a commercial lease in Maryland are going to vary depending on the specific terms of your lease agreement. Please read and refer to your lease. If your lease is month to month, then it's likely you'll have to provide at least 30 days notice. If your lease is for a longer term (6 to 12 months), it's likely you'll have to provide at least 90 days notice, and may need to pay damages for breach of the lease agreement.

Read 1 attorney answer>

Commercial Real Estate

Commercial Lease

Maryland

Asked on Apr 20, 2023

Can the tenant make changes to the property's signage?

I am looking to rent a commercial property for my business and have recently come across a potential property. The lease agreement states that the tenant is not allowed to make any changes to the property's signage. I am interested in understanding if there are any exceptions to this rule and if the tenant can make changes to the signage.

Michael C.

Answered Jun 1, 2023

Standard commercial lease template includes language about the nature and extent of modifications tenants can make to a property. In this instance, there's no legal or regulatory exception that is going to protect you from a restriction in the lease. Your best bet is to negotiate directly with the landlord for a modification to the lease terms.

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Real Estate

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Asked on Apr 21, 2023

What's the property description in a commercial lease?

I am a small business owner who is looking to lease a property for my business. I am currently reviewing a commercial lease and am trying to understand what is included in the property description in the lease. I am hoping to gain more clarity on what the property description entails and how it affects my business.

Gagandeep K.

Answered May 24, 2023

A property description in a commercial lease has to sufficiently identify the extent and boundaries of the property being leased. For example, it can be described by a map reference or by metes and bounds, or include a description such as "that certain building on the south-westerly corner of California and Larkin Streets." The commercial lease will include defined terms such as "Building," "Property," and "Premises". The defined terms define/describe the "Property" on which the "Building" is located which has the "Premises"/"Space" that is being leased. A sample definition of is Property Description in a Commercial Lease: ""Property" means the real property on which the Building is located together with the Building and all appurtenant fixtures and personal property of Landlord used in the operation of the Building and/or the Property, and any other improvements now existing or hereafter constructed thereon[, including the parking lot, walkways, and landscaped ground as depicted on the site plan attached hereto as Exhibit [LETTER]]."

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Litigation

Commercial Lease

Texas

Asked on Apr 14, 2023

What's the survival clause in a commercial lease?

I am looking to enter into a commercial lease for my new business. I am unfamiliar with the terms of a commercial lease, and am particularly interested in understanding the survival clause. This clause is important to me because I want to make sure I am fully aware of my rights and responsibilities as a tenant. I need to know what is expected of me should the lease be terminated prematurely.

Curt L.

Answered Apr 28, 2023

A survival clause is fairly standard in a lease. It extends the effectiveness of certain provisions, such as party representations, warranties, promises, and covenants beyond the expiration or termination of the lease, but not beyond the legally prescribed statute of limitations. For example, If you make a fraudulent representation in a 1-year lease, the other party to the lease who is damaged by your fraud could still sue you for that fraud even after the end of the 1-year lease.

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Landlord

Commercial Lease

Ohio

Asked on Apr 12, 2023

Can the rent be increased during the lease term?

I am an entrepreneur who is looking to rent a commercial space for my business. I recently found a space that fits my needs and the landlord is offering a lease agreement. I am wondering if the rent can be increased during the lease term, as this could have a significant impact on my business. I understand that the lease agreement may contain provisions that allow for rent increases, but I would like to confirm this before signing the agreement.

Jeffrey K.

Answered Apr 14, 2023

The lease agreement should specifically provide when and in what amount any rent increases would occur. Usually on a lease with a five year term, rent would increase yearly. If you have a build out credit, you may have free rent for a term if you pay for the build out. If it is a net lease, meaning you pay rent and, either taxes, insurance and/or common area maintenance, you would have a base rent plus the other fees that could increase during the initial lease term usually yearly, but it could be more than one time a year if the costs of these items increase. The rent would also likely increase yearly. If the lease is a gross lease, you will have one monthly rental payment that would increase (most likely) yearly.

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