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What is a Manufacturing Lease?

A Manufacturing Lease sets out the rental terms for commercial properties in which the tenant will be involved in producing, processing, or packaging goods. The manufacturing business comes with special risks and regulations, so if you're involved in renting or leasing the property where it will take place, a Commercial Manufacturing Lease can help limit your liability. You can use this document to establish a good landlord-tenant relationship, so that the space is safely, and productively, used for commercial manufacturing. When it is drafted properly, this essential legal contract may limit the number of disputes that might arise. When ready, you can tap or click on the button labeled "Make document" to check out the sample Manufacturing Lease.

When to use a Manufacturing Lease:

  • You're a landlord renting commercial property.
  • You want to rent commercial property for manufacturing.

Sample Manufacturing Lease

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Manufacturing Lease

 

 

This Manufacturing Lease (this "Lease") is dated , by and between ("Landlord"), and ("Tenant"). The parties agree as follows:

 

PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant (the "Premises") located at , , .

LEGAL DESCRIPTION. The legal description for the premises is: LEGAL DESCRIPTION. The legal description for the premises is attached as an exhibit. LEGAL DESCRIPTION. A sketch of the Premises subject to this Lease is attached as an exhibit.

 

TERM. The lease term will begin on and will terminate on .

 

LEASE PAYMENTS. Tenant shall pay to Landlord Lease payments shall be made to the Landlord at , , , which address may be changed from time to time by the Landlord.

 

ADDITIONAL RENT AND TAXES. Unless otherwise specifically stated in this Lease, any charge payable by Tenant under this Lease other than Base Rent is called Additional Rent. The term rent whenever used in this Lease means Base Rent, Additional Rent and/or any other charge, fee or monies payable by Tenant under the terms of this Lease. The Tenant shall pay as additional rent any sums allocated for taxes on the Premises or other charges accrued due to the Tenants use of the Premises.

 

POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to Landlord on the last day of the term of this Lease, unless otherwise agreed by both parties in writing. At the expiration of the term, Tenant shall remove its goods and effects and peaceably yield up the Premises to Landlord in as good a condition as when delivered to Tenant, ordinary wear and tear excepted.

 

Tenant shall notify Landlord of any anticipated extended absence from the Premises not later than the first day of the extended absence. If, in the Landlord's opinion, the premises of any part thereof are not being used in the usual and legitimate manner in the conduct of such business, the Landlord may give the Tenant written notice requiring the Tenant to terminate the improper. A failure to comply with such request shall constitute a breach of this lease, which will entitle the Landlord to immediate possession of the premises hereby leased (in addition to all other remedies given to the Landlord for the breach of any condition or covenant of this lease).

The following furnishings will be provided: PARKING. Tenant shall be entitled to use parking space(s) for the parking of the Tenant's customers'/guests' motor vehicle(s).

 

PROPERTY INSURANCE. Landlord shall be named as an additional insured in such policies. Tenant shall deliver appropriate evidence to Landlord as proof that adequate insurance is in force issued by companies reasonably satisfactory to Landlord. Landlord shall receive advance written notice from the insurer prior to any termination of such insurance policies. Tenant shall also maintain any other insurance which Landlord may reasonably require for the protection of Landlord's interest in the Premises. Tenant is responsible for maintaining casualty insurance on its own property.

in a total aggregate sum of at least . with personal injury limits of at least for injury to one person, and for any one accident, and a limit of at least for damage to property. except that the lease installment payments shall be per

MAINTENANCE. Landlord shall have the responsibility to maintain the Premises in good repair at all times.

MAINTENANCE. Tenant shall have the responsibility to maintain the Premises in good repair at all times during the term of this Lease.

MAINTENANCE.

 

Landlord's obligations for maintenance shall include:

- the roof, outside walls, and other structural parts of the building

- the parking lot, driveways, and sidewalks, including snow and ice removal

- the sewer, water pipes, and other matters related to plumbing

- the electrical wiring

- the air conditioning system

-

- all other items of maintenance not specifically delegated to Tenant under this Lease.

 

Tenant's obligations for maintenance shall include:

- the roof, outside walls, and other structural parts of the building

- the parking lot, driveways, and sidewalks, including snow and ice removal

- the sewer, water pipes, and other matters related to plumbing

- the electrical wiring

- the air conditioning system

-

- all other items of maintenance not specifically delegated to Landlord under this Lease.

UTILITIES AND SERVICES. Landlord shall be responsible for all utilities and services incurred in connection with the Premises.

UTILITIES AND SERVICES. Tenant shall be responsible for all utilities and services incurred in connection with the Premises.

UTILITIES AND SERVICES.

 

Landlord shall be responsible for the following utilities and services in connection with the Premises:

- electricity

- water and sewer

- gas

- heating

- garbage and trash disposal

- janitorial services

- telephone services

-

 

Tenant shall be responsible for the following utilities and services in connection with the Premises:

- electricity

- water and sewer

- gas

- heating

- garbage and trash disposal

- janitorial services

- telephone service

-

 

Tenant acknowledges that Landlord has fully explained to Tenant the utility rates, charges and services for which Tenant will be required to pay to Landlord (if any), other than those to be paid directly to the third-party provider.

Landlord shall pay all real estate taxes and assessments for the Premises.Tenant shall pay all real estate taxes and assessments which are assessed against the Premises during the time of this Lease.Landlord Tenant

 

DEFAULTS. Tenant shall be in default of this Lease if Tenant fails to fulfill any lease obligation or term by which Tenant is bound. Subject to any governing provisions of law to the contrary, if Tenant fails to cure any financial obligation within days (or any other obligation within days) after written notice of such default is provided by Landlord to Tenant, Landlord may take possession of the Premises without further notice (to the extent permitted by law), and without prejudicing Landlord's rights to damages. In the alternative, Landlord may elect to cure any default and the cost of such action shall be added to Tenant's financial obligations under this Lease. Tenant shall pay all costs, damages, and expenses (including reasonable attorney fees and expenses) suffered by Landlord by reason of Tenant's defaults. All sums of money or charges required to be paid by Tenant under this Lease shall be additional rent, whether or not such sums or charges are designated as "additional rent". The rights provided by this paragraph are cumulative in nature and are in addition to any other rights afforded by law.

LATE PAYMENTS. For any payment that is not paid within days after its due date, Tenant shall pay a late fee of .LATE PAYMENTS. For each payment that is not paid within days after its due date, Tenant shall pay a late fee of per day, beginning with the day after the due date.LATE PAYMENTS. For each payment that is not paid within days after its due date, Tenant shall pay a late fee equal to % of the required payment.

 

WAIVERS. The Tenant waives all right under the State Law, and all present and future supplements or amendments of that Act, and authorizes the sale of any goods distrained for rent at any time after five days from such distraint without any inventory or appraisement thereof. The Tenant waives the benefit of all present and future exemption laws, releasing goods on the Premises or elsewhere, or any property in any way belonging to the Tenant, from levy and sale upon distress for rent or other charges reserved as rent, or upon an execution or any judgment obtained in an action brought for nonpayment of rent, or in all suits, actions, or proceedings, amicably or otherwise, for the collection of rent or other charges reserved as rent due and in arrears for any expenses incurred in removing ashes, rubbish, or refuse matter from the premises, and for damage for the nonfulfillment of any covenant contained herein. The Tenant also waives the right of inquisition on any real estate that may be levied upon to collect any amount due under the terms and conditions of this lease, and does voluntarily condemn the same and authorizes the one to enter a writ of execution or other process on such Tenant's voluntary condemnation. The Tenant further agrees that the real estate may be sold on a writ of execution or other process.

% of the most recent rate preceding the Holdover Period. Such holdover shall constitute a month-to-month extension of this Lease.the normal payment rate set forth in the Renewal Terms paragraph.

 

RENT OR SALE SIGNAGE. The Landlord may place and continually keep in a conspicuous place on the Premises for the information of the public the usual and customary For Sale or For Rent signs with the name and address of the Landlord, and its agents or either of them, at any time within three months before the expiration of the term, or before any sooner determination, or any time after notice from either party of an intention to terminate this lease. Prospective purchasers or tenants authorized by the Landlord may inspect the premises at reasonable hours at any time.

 

CUMULATIVE RIGHTS. The rights of the parties under this Lease are cumulative, and shall not be construed as exclusive unless otherwise required by law.

 

DAMAGE. If the Premises are totally destroyed or so damaged by fire or other casualty not occurring through fault or negligence of the Tenant, or those employed by or acting for it, that they cannot be repaired and restored, on the basis of normal working days and hours, this lease shall terminate, and the rent shall abate for the balance of the term. If the damage above is only partial and the premises can be restored, on the basis of normal working days and hours, within reasonable time , the Landlord shall restore them as speedily as circumstances reasonably permit, including the time necessary and required by the insurance companies to inspect the premises and to make an adjustment with the Landlord. The Landlord may enter upon the premises for the purpose of doing the restoration work. However, if such damage occurs during the final 12 months of the then current term, the Landlord may terminate this lease by giving written notice to the Tenant within 30 days after the damage occurs. If the Landlord exercises such option the rent shall abate for the balance of the term. The Landlord also may enter upon the Premises whenever necessary to repair damage caused by fire or other casualty to the building of which the Premises are a part, even though the effect of such entry is to render the Premises or a part thereof untenantable. In either event, the rent shall be apportioned and suspended while the Landlord is in possession, taking into account the proportion in area of the Premises rendered untenantable and the duration of the Landlord's possession. If a dispute arises as to the amount of rent due under this clause, the Tenant shall pay the full amount claimed by the Landlord. The Tenant may, however, proceed by law to recover any excess payment.

 

GOVERNING LAW. This Lease shall be construed in accordance with the laws of the State of .

 

ENTIRE AGREEMENT/AMENDMENT. This Lease Agreement contains the entire agreement of the parties and there are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease. This Lease may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.

 

SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Lease is invalid or unenforceable, but that by limiting such provision, it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

 

WAIVER. The failure of either party to enforce any provisions of this Lease shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Lease.

 

BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the benefit of both parties and their respective legal representatives, successors and assigns.

 

SIGNATURES AND NOTICE. This Lease shall be signed by the following parties. No notice under this Lease shall be deemed valid unless given or served in writing and forwarded by mail, postage prepaid, addressed to the parties below:

 

LANDLORD:

 

,

 

TENANT:

 

 

Such addresses may be changed from time to time by either party by providing notice as set forth above. Notices mailed in accordance with the above provisions shall be deemed received on the third day after posting.

 

LANDLORD:

 

 

By: Date:

,

 

TENANT:

 

 

By: Date:

,

 

and , and .and , and .

_____

 

_____

 

_____

 

_____

 

 

_____ Legal description of the leased property

_____ Sketch of the leased property

When to Consult a Lawyer

 

* State laws vary on the amount that may be charged as a late payment fee. Consult an attorney to determine whether limits apply in your state.

 

* Consult an attorney to determine whether the laws of your state limit the amount that may be charged for checks returned due to non-sufficient funds.

 

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Manufacturing Lease FAQs

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  • Is this Factory Rental Agreement legally binding under state law?

    As with any contract, a Factory Rental Agreement is not legally binding until it is signed by all parties. Unlike the other sites that you may stumble upon, Rocket Lawyer offers more than any run-of-the-mill Manufacturing Lease template or fillable PDF that you could obtain elsewhere. In the event of nonpayment or another problem related to your Factory Rental Agreement, your Rocket Lawyer membership provides optional access to Document Defense® support from an Rocket Lawyer network attorney.

  • Do factory owners always have to use Factory Rental Agreements?

    Even if the rental is informal, it is important to capture in writing the details of any commitments to the renter. You might decide that you want to make this document because it yields the helpful benefits listed here:

    • There are no surprises about how long the rental lasts
    • All parties know what they are responsible for
    • All parties know when rent payments are expected

    Ultimately, if you or your tenant decide against signing this document, neither party will be able to enjoy all of the aforementioned benefits.

  • How should a Commercial Manufacturing Lease template be organized?

    Specifics that you might want to add to your document are:

    • Your description of the property
    • Contact information for the renter(s)
    • How long the lease will last
    • How payment will be made

    As you may expect from a document like this, any Manufacturing Lease built with Rocket Lawyer will also include guidelines around past due fees, governing law, and liability. More customization is allowed, if necessary.

  • How much might I traditionally pay for a lawyer to create a Manufacturing Lease?

    The cost of finding and hiring your average attorney could add up to anywhere between hundreds of dollars and thousands, depending on the complexity of your situation. As you plan to write this free document using Rocket Lawyer, you will need to take in the guidance that is given. If you'd like, you can also have your document checked by an attorney in our nationwide network prior to signing it.

  • Am I required to do anything else once I have created a Manufacturing Lease?

    Your Manufacturing Lease will come with its own checklist of instructions on what is next to finalize the document. With a Rocket Lawyer membership, you will be able to make edits, use RocketSign® to get electronic signatures, print it out, make a copy, and save it in PDF format or as a Word file when needed. Finally, you will need to provide a final copy of your signed agreement to the lessee. You should also feel free to browse our larger collection of additional legal documents .

  • Would anyone review my Manufacturing Lease before I sign?

    Getting a second opinion on your document could take longer than you would think if you attempt to do it on your own. An alternate approach might be to request help from the Rocket Lawyer On Call® attorney network . Rocket Lawyer members can ask for advice from an attorney with relevant experience or pose additional legal questions. When it comes to managing your rentals, you can Work Confidently® knowing that Rocket Lawyer is here by your side.

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