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

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers

The Arkansas commercial lease agreement is a statutory arrangement specifying terms between a landlord (lessor) or commercial tenant (lessee) for industrial, rental, retail, or office areas. Even when there is no maximum or minimum lease duration for commercial properties in Arkansas, they typically remain valid for one to three years. Once signed, the Arkansas tribunal assumes a commercial lease agreement to be a lawfully valid contract.

Types of Arkansas Commercial Lease Agreements

The three types of commercial lease agreements in Arkansas are as follows:

  1. Gross Lease Agreement - The lessee pays the lessor the specified amount at the time set in the agreement.

  2. Triple Net - The lessee pays the lessor a rent amount specified in terms of the contract with the addition of all other expenditures related to the leased property, such as taxes, utilities, maintenance, and insurance.

  3. Modified Gross - The lessee pays the lessor the specified amount and at the time specified in the contract provisions with the addition of other expenditures, such as utilities.

Arkansas Commercial Landlord/Tenant Law

  • Landlords must mention whether the property can be modified for renovation or signage in the agreement.

  • Landlords in Arkansas must include a section regarding the allowance of hazardous or illegal materials that can be stored on-premise in the agreement.

  • Landlords must add a lead paint disclosure about the usage of lead paint for properties built before 1978 in the agreement.

  • Landlords in Arkansas have the right to collect rent payments, and security deposits to cover excessive damages to the property, and seek an eviction claim if the tenant violates the terms and conditions of the lease.

  • Both landlords and tenants must express consent to the terms stated in the agreement by notarizing the document.

  • Tenants must keep the property in the same condition they received it.

  • Tenants do not have the right to withhold rent payments or deduct repair costs from future rent payments as per Arkansas law.

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Michael C. on ContractsCounsel
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Michael C.

Attorney and Business Consultant
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St. Paul, MN
18 Yrs Experience
Licensed in AR MN
Brigham Young University

I offer top-tier legal expertise in startups, corporate governance, and general legal research. As a professor and published author of research articles and conference presentations, I have established myself as a legal expert, writer, and scholar. My strong research skills and innovative thinking make me a highly capable business consultant, legal adviser, and copywriter. Currently licensed to practice in Minnesota and Arkansas. Recent freelance projects include business plans, contract drafting, legal advisory memoranda, due diligence, pre-trial motion practice, and discovery review.

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Lynette P.

Litigation Attorney
Free Consultation
Little Rock, Arkansas
13 Yrs Experience
Licensed in AR TX
St. Mary's University School of Law

I am licensed in both Texas and Arkansas but actively working in Arkansas. My primary focus is criminal defense, family law, and estate planning (wills and trusts).

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Real Estate

Commercial Lease

Texas

Asked on May 12, 2021

What is a triple net lease?

I want to understand these better.

George O.

Answered May 12, 2021

A triple net lease designates the tenant (lessee) as having the sole responsibility for any and all costs associated to the asset being leased in the agreement, with those costs being the net real estate taxes on the leased asset, net building insurance, and net common area maintenance. The lease received its name from the three “net” fees and may also be called a Net-Net-Net Lease.

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Asked on May 12, 2021

Should I use a lawyer for commercial lease?

It is a very long lease and I'm not sure what it says. I also don't want to pay a fortune to have it reviewed to eat into my budget.

George O.

Answered May 12, 2021

Yes! Before signing any contract/agreement/lease, or anything that appears to be a binding agreement, it is worth the money to have a lawyer review it. I charge a flat fee to review any and all agreements, so my clients know up front what they are paying, and they consider it a cost of doing business. The alternative, i.e. not having a lawyer review your agreements prior to signing, can be, and usually is, exponentially more expensive should a conflict arise (and they often do).

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Answered Mar 15, 2022

I have been a commercial real estate attorney for over 30 years. I can review the agreement, and negotiate and draft any revisions. Considering it is in a mall, I am guessing that it is with a major retail landlord which would require review of the underlying lease. I can give you a flat rate once you request a proposal.

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What's the parking situation in a commercial lease?

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The only way to answer this question is to have an attorney read the lease.

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Moss S.

Answered Apr 28, 2023

Usually permitted alterations are cosmetic, and non-structural in nature. Often times the Landlord will require the Tenant to submit plans, or in the alternative the lease will describe the fit and finish that would be allowed.

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