An Arizona commercial lease agreement is a binding contract for a tenant to lease retail, office, or industrial space. The agreement sets the responsibilities and rights for both landlords and tenants, as well as details about rent, deadlines, penalties and other details.
The Arizona law that governs commercial leases is AZ Rev Stat § 42-5069. These types of leases are longer and more complex than a residential lease, so consulting with a lawyer is advisable.
Arizona Commercial Lease Requirements
The following are Arizona specific requirements for commercial leases:
- Material Facts – Landlords are required to disclose any material facts about the property, which may interfere with the normal commercial use of the property as intended. The material fact must be disclosed even if the tenant does not inquire about it.
- Zoning, Restrictions, and Taxes – If there are any local zoning laws, use restrictions, taxation issues, or other regulatory requirements that affect the commercial rental property, these need to be disclosed in writing within the lease agreement.
Writing an Arizona Commercial Lease Agreement
An Arizona commercial lease agreement should generally contain the following:
- Landlord’s name and contact information
- Tenant’s name and contact information
- Property manager’s information (if using)
- Description of the lease property
- Authorized use of the lease property
- Term of the lease and the commencement date
- Type of lease (gross, modified-gross, or triple-net)
- Option to renew the lease (if any)
- Rent and landlord’s profit participation in operations (if any)
- Penalty for late or non-payment of rent (including eviction process)
- Responsibilities for maintenance and utility costs
- Security deposit policy (including refunds)
- Permissible leasehold improvements allowed by the landlord
- Landlord and tenant contact information and form for legal service
- Jurisdiction and reference to Arizona state law
- Any lease-specific terms
