Free Iowa Commercial Lease Agreement

Step 1 of 30

Create your Commercial Lease Agreement
Type of Property being Leased:
- Office
- Building
- Retail Store
- Restaurant
- Industrial
- Warehouse
- Other

Customized Lease
Location of Property:
Different states have different rules and regulations.
Your Commercial Lease Agreement will be customized for .
Type of contract:
- Standard agreement
- Comprehensive agreement

Guarantor
Will a 3rd party guarantee the tenant’s financial obligation?
- Yes
- No
Type of Guarantee?
- Guarantor will sign the lease
- Guarantor will sign separate Personal Agreement
- Guarantor will sign a separate Indemnity Agreement (strongest)
Guarantor Details
Name:
Type:
Street Address:
City:
State:
ZIP code:
Phone #:
Fax #:

Permitted Use
The landlord agrees to rent the property to the tenant only for the following permitted use:
(e.g. restaurant, office, retail store, medical office, dental office, beauty salon,
insurance agency, etc.)
Will the tenant be protected from direct competition on the property (exclusive use)?
- Yes
- No

Parking
Will the tenant receive parking privileges?
- Do not specify
- Yes
- Yes, include description
- No
Parking Description:
(e.g. stall #323 and #324)
Will the tenant receive exclusive access to the parking area?
- Yes
- No
Is there a specific number of parking stalls?
- Yes
- No
Number of parking stalls:

Lease Term
Lease start date:
MM slash DD slash YYYY
The lease will:
- End on a set date.
- Have no set end date.
Date lease ends:
MM slash DD slash YYYY
Lease will renew:
- Monthly
- Yearly
Will the tenant be able to move in before the lease start date? (early possession)
- Yes
- No
Possession (occupancy) date:
MM slash DD slash YYYY

Rent Payment
What day of the week will rent be paid?
What day of the month will rent be paid?

(e.g. first, tenth)
When will the first rent payment be made?
What day of the year will rent be paid?
Specify a payment address?
- Yes
- No
Payment Address
Suite/Unit:
Address:
City/Town:
State:
Zip:

Rent Increase/ Late Payments
Do you want to include built-in rent increases?
- Yes
- No
Describe rent increases:
(e.g. First Year - $1000.00, Second Year - $1250.00, etc.)
Do you want to specify late payment charges?
- Yes
- No
Type of late payment charge:
- Fixed charge per late payment
- Fixed charge per day late
- % of Rent
- Other
Amount of late charge:
Amount of late charge:
Amount of late charge:
Please enter a number from 0 to 100.
Describe the late payment charge:
(e.g. $25.00 plus $2.50 for each day after the fifth day late)

Taxes
Will the tenant be responsible for paying any taxes resulting from their use of the property?
- Do not specify
- Yes
Will the tenant pay any taxes directly to the landlord?
- Do not specify
- Yes
Tenant is to pay which taxes directly to the landlord?
(e.g. sales and use taxes)
Those taxes are:
- Included in rent
- In addition to rent
Will the tenant pay any taxes directly to the government?
- Do not specify
- Yes
Tenant is to pay which taxes directly to the government?
(e.g. business licence fees, etc.)

Insurance Provisions
Would you like to customize the standard insurance clauses?
Landlord Insurance
- Standard clause
- Customize wording
- Do not include
Tenant Insurance
- Standard clause
- Customize wording
- Do not include
Revise Landlord Insurance Wording:
The Landlord will take out or cause to be taken out and keep or cause to be kept in full force and effect during the whole of the term: (a) extended fire and extended coverage insurance on the Building, except foundations, on a replacement cost basis, subject to such deductions and exceptions as the Landlord may determine; such insurance will be in a form or forms normally in use from time to time for buildings and improvements of a similar nature similarly situate, including, should the Landlord so elect, insurance to cover any loss of rental income which may be sustained by the Landlord; (b) boiler and machinery insurance of such boilers and pressure vessels as may be installed by, or under the exclusive control of, the Landlord in the Building (other than such boilers and pressure vessels to be insured by the Tenant hereunder); and (c) comprehensive general liability insurance against claims for bodily injury, including death and property damage in such form and subject to such deductions and exceptions as the Landlord may determine; provided that nothing in this clause will prevent the Landlord from providing or maintaining such lesser, additional or broader coverage as the Landlord may elect in its discretion.
Revise Tenant Insurance Wording:
The Tenant will, during the whole of the term and during such other time as the Tenant occupies the Premises, take out and maintain the following insurance, at the Tenant's sole expense, in such form as used by solvent insurance companies in the jurisdiction where the Premises are located: (a) Comprehensive general liability insurance against claims for bodily injury, including death, and property damage or loss arising out of the use or occupation of the Premises, or the Tenant's business on or about the Premises; such insurance to be in the joint name of the Tenant and the Landlord so as to indemnify and protect both the Tenant and the Landlord and to contain a 'cross liability' and 'severability of interest' clause so that the Landlord and the Tenant may be insured in the same manner and to the same extent as if individual policies had been issued to each, and will be for the amount of not less than $1,000,000.00 combined single limit or such other amount as may be reasonably required by the Landlord from time to time; such comprehensive general liability insurance will for the Tenant's benefit only include contractual liability insurance in a form and of a nature broad enough to insure the obligations imposed upon the Tenant under the terms of this Lease. (b) All risks insurance upon its merchandise, stock-in-trade, furniture, fixtures and improvements and upon all other property in the Premises owned by the Tenant or for which the Tenant is legally liable, and insurance upon all glass and plate glass in the Premises against breakage and damage from any cause, all in an amount equal to the full replacement value of such items, which amount in the event of a dispute will be determined by the decision of the Landlord. In the event the Tenant does not obtain such insurance, it is liable for the full costs of repair or replacement of such damage or breakage. (c) Boiler and machinery insurance on such boilers and pressure vessels as may be installed by, or under the exclusive control of, the Tenant in the Premises. (d) Owned automobile insurance with respect to all motor vehicles owned by the Tenant and operated in its business.
Minimum amount of required tenant insurance:

Landlord Improvements
Will the landlord be required to make any improvements to the property?
- Yes, specify now
- Yes, specify in an attached list
- No
Landlord Improvement
First Landlord Improvement
Describe the improvement in detail:
(e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
- Add another landlord improvement
Second Landlord Improvement
Describe the improvement in detail:
(e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
- Add another landlord improvement
Third Landlord Improvement
Describe the improvement in detail:
(e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
- Add another landlord improvement
Fourth Landlord Improvement
Describe the improvement in detail:
(e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
- Add another landlord improvement
Fifth Landlord Improvement Describe the improvement in detail: (e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
Fifth Landlord Improvement

Describe the improvement in detail:
(e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
- Add another landlord improvement
Sixth Landlord Improvement Describe the improvement in detail: (e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)
Sixth Landlord Improvement

Describe the improvement in detail:
(e.g. Prior to the Tenant taking possession of the Property, the Landlord will install a standard interior door with a deadbolt at the rear entrance of the building.)

Personal Property Provided by Landlord
Will the landlord provide any movable property (chattels)?
- Do not specify
- Yes
- No
Chattel Details
First Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444)
- Add another chattel
Second Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444)
- Add another chattel
Third Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444)
- Add another chattel
Fourth Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444)
- Add another chattel
Fifth Chattel Describe the movable property in detail: (e.g. Whirlpool dishwasher serial #AV3444)
Fifth Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444)
- Add another chattel
Sixth Chattel Describe the movable property in detail: (e.g. Whirlpool dishwasher serial #AV3444)
Sixth Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444)

Tenant Improvements
Will the tenant be allowed to make improvements to the property?
- Do not specify
- Yes, with the landlord's written consent
- Yes, specify permitted improvements
Tenant Improvement
First Tenant Improvement
Describe the permitted improvement in detail:
(e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
- Add another tenant improvement
Second Tenant Improvement
Describe the permitted improvement in detail:
(e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
- Add another tenant improvements
Third Tenant Improvement
Describe the permitted improvement in detail:
(e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
- Add another tenant improvements
Fourth Tenant Improvement
Describe the permitted improvement in detail:
(e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
- Add another tenant improvements
Fifth Tenant Improvement Describe the permitted improvement in detail: (e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
Fifth Tenant Improvement
Describe the permitted improvement in detail:
(e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
- Add another tenant improvements
Sixth Tenant Improvement Describe the permitted improvement in detail: (e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)
Sixth Tenant Improvement
Describe the permitted improvement in detail:
(e.g. The Tenant may replace the flooring in the kitchen provided the Tenant obtains the Landlord's prior consent as to materials to be used.)

Movable Property Provided by Tenant
Will the tenant provide any movable property (chattels)?
- Do not specify
- Yes
- No
Chattel Details
First Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444.)
- Add another chattel
Second Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444.)
- Add another chattel
Third Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444.)
- Add another chattel
Fourth Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444.)
- Add another chattel
Fifth Chattel Describe the movable property in detail: (e.g. Whirlpool dishwasher serial #AV3444.)
Fifth Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444.)
- Add another chattel
Sixth Chattel Describe the movable property in detail: (e.g. Whirlpool dishwasher serial #AV3444.)
Sixth Chattel
Describe the movable property in detail:
(e.g. Whirlpool dishwasher serial #AV3444.)

Signing Incentives
Will the tenant receive a signing bonus?
- No
- Yes, free rent for a limited period
- Yes, specify customized terms
The tenant will receive
month(s) of free base rent.
Describe the signing bonus:
(e.g. $500 improvement allowance for paintings)

Additional Clauses (Optional)
You can add additional clauses if there are some information, details, terms or
restrictions that the lease doesn't have but you wish to include. In most leases, this
is not necessary.
- Add a clause
Additional Clause
First Additional Clause
Additional Clause
- Add another clause
Second Additional Clause
- Add another clause
Third Additional Clause
- Add another clause
Fourth Additional Clause
- Add another clause
Fifth Additional Clause
- Add another clause
Sixth Additional Clause
- Add another clause
Seventh Additional Clause
- Add another clause
Eighth Additional Clause

Required Notice before Evicting Tenant
How many days written notice is the landlord required to give
before evicting the tenant for the following breaches:
Failure to pay rent when due:

days
Any other lease breaches:

days

Lease Renewal
Will the tenant have the option to renew the lease?
- No option specified
- Yes, same terms except rent renews at market rates
- Yes, same terms
- Yes, revise standard clause
Revise the following to suit your needs:
Upon giving written notice no later than 120 days before the expiration of the term of this Lease, the Tenant may renew this Lease for an additional term. All terms of the renewed lease will be the same except for any signing incentives/inducements and this renewal clause.

Signing Details
Agreement to be signed?
- Today
- This Month
- Unsure
- Specify Date
MM slash DD slash YYYY

Skip this step for now

How to Negotiate a Better Deal for Your Commercial Lease Agreement in Iowa

As every business owner knows, you cannot get a lease with favorable terms if you don’t negotiate. Also, you know that you have to negotiate the changes in some of the terms before you sign anything. The commercial lease agreement is a legally binding contract between the landlord and the tenant. It gives you, the tenant, the right to own the commercial property for a specific amount of time and at a certain amount payable as rent. Once signed, you have committed to meet your end of the agreement without fail.

To negotiate for favorable terms, you must understand all the elements of a commercial lease agreement in Iowa. Whether you are a master negotiator or a first-time leaseholder, this content will shine the light on what you should know before and during the negotiation process. Note that your points of negotiation are also the elements of your lease.

The Term of The Lease

The term of the lease is the time you wish to lease the property. Do you need a long-term or a short-term lease? If you are new in business, a short-term lease is preferable to a long-term lease. And even then, you should have researched the suitability of that commercial state extensively.

When searching for office space, check:
- The zoning of the office space – is the property zoned for commercial operations and retails shops or is it designated an office space?
- Accessibility – is there enough parking for you and your customers? You need parking for at least 3 customers. And you also need to factor in your employees.
- Employee and customer pool – other than the accessibility, you should look at the traffic the property gets and the people who frequent the property. For instance, if you are setting up a restaurant, you have to consider your target clientele and whether or not people walk around the location a lot.
- You also need to be keen about your maximum budget and if the size of the property is ideal for your business.

Once you’ve accounted for these elements, you can choose a preferable term for your Iowa commercial lease agreement.

And speaking of lease terms, you can opt for a fixed-term or a periodic lease term.

The fixed-term leases have predetermined end dates. In most cases, the landlord cannot increase the rent or change the terms of the lease, unless the change is provided for in the lease.

The periodic leases, on the other hand, refer to leases with unspecified end dates. However, either party can terminate tenancy after issuing a formal notice.

Permitted Uses of the Property

Before you negotiate better terms, be sure that the landlord allows running of the business in your line of operations. Other than the approval from the landlord, you also need to check the interior and exterior designs of the space. The space should improve the flow of business by streamlining your business activities.

Rent and Expenses

It’s safe to say that most of us will negotiate the rent charged more than anything else in the lease, right? Well, to get the best rate, even one that is below the market average, you must choose the relevant type of lease.

Besides the types of leases dependent on the term of the lease, leases also vary depending on the what you pay for.

Gross lease: in this type of lease, the amount put forth by the landlord represents the base rent (the amount you pay for the space only) and the cost of operating expenses and utilities.

Net lease: with this lease, you pay the base rent and operating expenses including the property taxes, insurance, and the common area maintenance (CAM). Note, however, that there are three main types of net leases: single, double and triple net. The triple net lease involves paying the base rent plus the pro rata expenses (insurance, taxes, and CAM). The double and single net leases involve payment of the base rent with two expenses (taxes and insurance) or one expense (property taxes). Generally, a net lease is cheaper because the operating expenses tend to reduce with time lowering the rent you pay.

Modified gross lease: you might also negotiate the terms of the lease such that you only pay a small part of the expenses.

Percentage Lease: in other cases, you’ll have to pay the base rent as well as a percentage of your gross income.

Besides the operating expenses and the utilities, the rent payable in the future could be affected by escalations.

Escalations refer to the legal provision that allows the landlords to increase rent charged to counter the effects of inflation. Escalation may be based on amounts so that the rent increases by a specific amount every year. Escalation could also be indexed or based on a percentage.

Tenant Improvements

Negotiate how much the landlord pays for improvements to the commercial space. Why? Tenant improvements refer to the predetermined construction allowance by the landlord to a tenant quoted on a square foot basis. Though negotiable, you might not get the allowance if the demand for the space is high and the landlord has no problem filling the space.

ADA Compliance

If the commercial space you intend to lease is not ADA compliant (it should be compliant indoors and outside), you should negotiate the terms and make it clear that the landlord covers the costs required to make the space compliant. If the landlord declines to meet your terms, then your lease (op/ex) should be without the common area improvements.

To avoid any issues, make sure the space is ADA compliant before you sign the agreement.

Other elements to check include the assignment and sublease options.

Also, check the terms of the termination and relocations clauses, and protect your expansion and renewal rights.

Would you like a commercial lease in Des Moines, Davenport, Cedar Rapids, Iowa City, Ames, Dubuque or any other city in Iowa? Download your free copy of the Iowa commercial lease agreement form here today.

Step 1 of 30

Create your Commercial Lease Agreement

Customized Lease

Landlord Details

Landlord

First Landlord

Second Landlord

Third Landlord

Fourth Landlord

Tenant Details

Tenant

First Tenant

Second Tenant

Third Tenant

Fourth Tenant

Guarantor

Guarantor Details

Leased Property

Property Location

Permitted Use

Parking

Lease Term

Rent Details

per month

per week

every 3 months

per year

Rent Payment

Payment Address

Rent Increase/ Late Payments

Utilities and Other Expenses

Who is responsible for paying the following utilities?

Maintenance

Maintenance that the tenant is to perform or pay for:

Operating Costs

Who is responsible for paying the following operating costs for the property?

Property or Use Taxes

Taxes

Deposit Details

Insurance

Who is responsible for obtaining and paying for the following insurance?

Insurance Provisions

Would you like to customize the standard insurance clauses?

Landlord Improvements

Landlord Improvement

First Landlord Improvement

Second Landlord Improvement

Third Landlord Improvement

Fourth Landlord Improvement

Fifth Landlord Improvement

Sixth Landlord Improvement

Personal Property Provided by Landlord

Chattel Details

First Chattel

Second Chattel

Third Chattel

Fourth Chattel

Fifth Chattel

Sixth Chattel

Tenant Improvements

Tenant Improvement

First Tenant Improvement

Second Tenant Improvement

Third Tenant Improvement

Fourth Tenant Improvement

Fifth Tenant Improvement

Sixth Tenant Improvement

Movable Property Provided by Tenant

Chattel Details

First Chattel

Second Chattel

Third Chattel

Fourth Chattel

Fifth Chattel

Sixth Chattel

Signing Incentives

Customize Standard Clauses

Additional Clauses (Optional)

Required Notice before Evicting Tenant

Lease Renewal