Office Rental Lease Agreement: A General Guide
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What is an Office Rental Lease Agreement?
An office rental lease agreement, also known as an office space lease or commercial lease, is a legally binding agreement made between a tenant (lessee) and landlord (lessor) that outlines the terms and conditions for renting commercial office space. The tenant is typically asked to review and sign the lease agreement that is prepared by the landlord.
Commercial leases will outline terms, like rent amounts, rent escalations, what the property can be used for, who pays for expenses, and more. Understanding these lease terms is critical for both the landlord and tenant to make sure both are legally protected and happy with the deal negotiated between the two parties.
Office space lease agreements are commonly agreed for five-to-ten-year periods. The term of the lease can vary, but this is a common length. The reason is the landlord does not want to re-negotiate with a new tenant each year, and would rather find good tenants that pay rent on-time.
Common Types of Office Rental Lease Agreements
There are many different types of commercial lease agreements, all of which have different implications. Common office rental lease agreement types are below:
- Net Lease. A net lease is when the tenant is responsible for paying base rent, as well as utilities, maintenance, and insurance.
- Gross Lease. The tenant pays a fixed rent payment each month, with the landlord being responsible for all other expenses.
Standard Terms in an Office Rental Lease Agreement
A office rental lease agreement will have varying terms depending on the property, but below are lease terms you will typically find which are important to understand:
Rent Amount, Escalations
Within a lease agreement, there will be a section that outlines the monthly rent to be paid by the tenant. There may also be built-in rent escalations over time. It is important to understand the full costs of the lease, not just for the first year, but for all outer years where there may be rent escalations.
Lease Length
The term of the lease will be outlined in the lease agreement. For commercial leases for office space, it is normal to see a five to ten year lease term.
Modifications, Improvements
Offices typically requires modifications to the commercial space, so that the business can build out what they need. There is typically a section in the lease that outlines what the tenants can and cannot do as it relates to renovating the property.
Maintenance, Repairs
With most commercial spaces, there is maintenance required and a need to repair things. A commercial lease will outline which party is responsible for these costs.
Subleasing
It can be common for tenants to sublease part of their space to another party, especially if they are leasing square footage that isn’t being used. A lease agreement will address the rights of the tenant to sublease, and the process by which they can do it.
Lease Termination
Occasionally, businesses can get into financial trouble or a relationship between a landlord and tenant can becoming contentious. For these situations, the lease agreement will outline the acceptable reasons and process for terminating the agreement.
Seeking Professional Advice
Whenever you are asked to sign a commercial lease agreement, we recommend seeking professional legal advice. A commercial real estate lawyer will be able to help you draft or review a commercial lease, and make sure your rights and interest are best protected.
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Michelle T.
I am an experienced, well-rounded attorney with a background specializing in trusts and estates, contracts and business law. I have extensive experience working with simple contracts all the way up to multi-million dollar deals.
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Grace C.
I’m Grace E. Carlson, an intellectual property & transactional attorney, founder of aTMospheric IP, LLC, with over 6 years of combined law firm and in-house experience. I help businesses, startups, creators, and entrepreneurs draft, review, and negotiate commercial contracts while protecting their brands and innovations. My expertise includes SaaS agreements, MSAs, NDAs, licensing contracts, vendor and partnership agreements, as well as comprehensive trademark strategy, copyright matters, AI-related IP issues, and technology transactions. I’ve supported global companies including Robinhood, Iron Mountain, and Microsoft, and provided flexible in-house counsel through Axiom Law across fintech, SaaS, consumer goods, and data center industries. Known for translating complex legal issues into clear, practical solutions, I focus on delivering contracts that reduce risk, support go-to-market strategies, and scale with your business. Whether you need a custom SaaS agreement, trademark-integrated contracts, or AI compliance review, I provide responsive, business-minded counsel. Bar Admissions: Washington (2020) & Oregon (2021) J.D., Seattle University School of Law Let’s get your contracts and IP protections done right — efficiently and effectively.
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Experienced attorney and tax analyst with a history of working in the government and private industry. Skilled in Public Speaking, Contract Law, Corporate Governance, and Contract Negotiation. Strong professional graduate from Penn State Law.
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I was born and raised in Wayne, New Jersey and attended Seton Hall University, graduating cum laude. I followed my family down to Florida to attend Ave Maria School of Law where I graduated cum laude. I was admitted to the Florida Bar in 2018. During law school, I participated in the Certified Legal Internship program with the State Attorney's Office of the 20th Judicial Circuit and litigated 5 jury trials, 1 non jury trial and argued various motions before the court under the supervision of an Assistant State Attorney. I was an Assistant States Attorney for Collier County from 2018 to 2020 before moving into private practice in the areas of real estate and first party property from 2020 to 2021. As of November 2021, I started my own law practice that focuses on business planning, real estate and estate planning.
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I offer top-tier legal expertise in startups, corporate governance, and general legal research. As a professor and published author, 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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I am an accomplished attorney with more than 19 years of experience and extensive expertise in business negotiations, commercial contracts, and technology transactions. With a proven track record of providing strategic legal advice and delivering exceptional results, I have successfully assisted numerous clients in drafting, reviewing, and negotiating various business arrangements. My experience encompasses a wide range of areas, including intellectual property, data privacy and security, SaaS agreements, and software licenses. I co-founded a reputable general corporate law firm with three offices in Aspen, Atlanta, and New York. As a partner and attorney, I represented diverse clients, including start-ups, public corporations, investors, financial institutions, educational institutions, and non-profit entities. With a focus on delivering comprehensive legal solutions, I provided general counsel, expert dispute resolution, efficient litigation management, and skillful contract drafting and negotiations for businesses across industries.
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