Real Estate Office Lease: A General Guide
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Quick Facts — Real Estate Office Lease Lawyers
- Avg cost to draft a Commercial Lease: $910.00
- Avg cost to review a Commercial Lease: $690.00
- Lawyers available: 271 real estate lawyers
- Clients helped: 551 recent real estate office lease projects
- Avg lawyer rating: 4.97 (94 reviews)
What is a Real Estate Office Lease?
A real estate office lease, also known as a commercial lease agreement, is a legally binding agreement made between a landlord (lessor) and tenant (lessee) for the purpose of renting commercial space for business offices. The tenant, typically a business owner, will need to sign the office lease as a requirement for renting the commercial space.
Real estate office leases can have terms from five to ten years in length, so it is a big investment made by the tenant. Because of this, it is important that the tenant (lessee) fully understands the lease terms included in the agreement, and negotiates terms that may make the lease more favorable to the business.
Examples of Commercial Real Estate Property
Commercial real estate property is property that is rented for commercial or business use, and it not just limited to office spaces. Businesses of all sizes may need to rent commercial space to store inventory, give their employees a place to work, have a retail space for customers, and more. Some examples of commercial property include:
- Office space
- Warehouses and industrial space
- Retail space (stores, shopping centers, etc.)
- Leisure space (hotels, restaurants, sports facilities, etc.)
- Healthcare space (medical, dental, nursing homes, etc.)
Common Terms in a Real Estate Office Lease
A real estate office lease will have varying terms, but below are some you will typically find which are important to understand:
Cost of Rent & Escalations
This clause will typically include the monthly fee paid by the tenant to lease the office space. Rental rates can vary, but is typically calculated off a price per-square foot ($/SF) basis. There may also be rent escalations over the lease term to keep an eye on, which are increases in rent based on certain timeframes.
Lease Term
This section of the lease will outline how long the length of the lease is. Office leases can typically see lease terms of five to ten years.
Modifications, Improvements, and Buildouts
For office spaces, it is common to renovate and modify the space to fit the office’s needs. There will be a provision in the lease agreement that outlines what the tenant is allowed and not allowed to do as it relates to renovations, modifications, and buildouts. Make sure the lease allows the modifications required for your business plans.
Maintenance and Repairs
There will be a section of the lease that outlines who is responsible for paying for maintenance and repairs of the property. Depending on the lease, this may be the landlord’s responsibility or the tenant’s responsibility. It is important to understand this so that you can budget accordingly.
Subletting
Subleasing space for offices can be common, and there is typically a section in the lease that addresses this. If you plan to sublease part of the office space, make sure the lease allows it and understand the obligations you will have if you do sublease part of the space.
Renewal & Termination
The lease will have language around the lease renewing (i.e., how the lease will renew) and how each party can get out of the lease. No one wants to think about worst case scenarios, but make sure this section is fully understood in case the lease needs to be terminated early.
Use Clause
Lastly, an office lease will typically have a clause that outlines what the property can be used for. If you’re planning to use it strictly for office space, make sure the language of the lease allows for this. If you plan to use any part of the space for other reasons (i.e., retail, entertainment, storage, etc.), make sure this is allowed under the current lease language.
Seeking Professional Advice
Whenever you are asked to sign a legal document, especially when it is a big investment, it is always recommended to seek professional legal advice. Commercial real estate lawyers can help guide you through the process of drafting or reviewing a real estate office lease. These professionals will understand the terms and what is fair within the market. They will also help protect your rights as a landlord or tenant to set the transaction up for success.
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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Meet some of our Real Estate Office Lease Lawyers
Cecilia O.
With 15 years of extensive transactional/contracts experience reviewing and negotiating commercial contracts including a wide variety of purchase orders and contracts and non-disclosure agreements (NDA), I believe I can immediately contribute to the continued success of your team. I have been commended for a range of valuable skills—excellent contract management and contract administration, legal research, risk analysis, drafting and negotiations, and strategic thinking. I have worked as a legal consultant for 10+ years and I have reviewed over 7,500 contracts through this position. Contracts I have reviewed include but not limited to purchase orders, commercial and construction contracts, equipment rental agreements, non-disclosure, confidentiality, vendor agreements, service agreements, site access agreements, international agreements, request for proposals (RFP), bids and government contracts. These experiences have enabled me to master the ability to work independently and expeditiously to identify and assess issues and provide legally sound recommendations, consistent with good business practices. I have led teams (sales, insurance and management) to successfully negotiate contract terms with customers. Effective Communicator and Negotiator. I am a people person, and for the past 13 years, I have acquired excellent oral and written communication skills that enable me to interact and negotiate effectively with stakeholders at all levels. I am a self-starter with a strong work ethic. I have a high degree of resourcefulness, diligence, and dependability. Most important, I adapt to changing priorities quickly, thriving in an environment with high volume and short turnaround deadlines. My experience over the years allows me to transfer my skills to all types of contracts to meet the client’s needs. I am hopeful to provide similar legal expertise, effective contract administration and leadership to your organization. It would be a pleasure to meet within the next few weeks and discuss how my qualifications, experience, and capabilities will best fit the needs of your outfit.
"Cecilia was great to work with. She had knowledge on our project and I would not hesitate to work with her again."
Jeff G.
Jeff has 25 years of commercial transactional experience within numerous industries, including finance/banking, telecommunications/utilities, insurance, and software. He is a recognized authority on contracts, software licensing and negotiation. Jeff earned his Juris Doctorate from Valparaiso University School of Law and his Masters in Business Administration from North Carolina State University and is licensed to practice law in North Carolina and Indiana.
"Jeff G. handled everything very professionally. He was quick to respond and asked all the questions he needed in order to complete my project! Amazing service and highly recommend."
Phocus L.
G'day, my name is Michele! I work with startups, entrepreneurs and small/medium-sized businesses across the country in a wide array of industries. I help them with all of their ongoing, daily legal needs. This includes entity formation, M&A, contract drafting and review, employment, asset sale & acquisition, and business sales or shareholder exits. I'm half-Australian, half-Italian, and I've lived the last 20+ years of my life in America. I've lived all over the USA, completing high school in the deep south, graduating cum laude from Washington University in St. Louis, and then cum laude from Georgetown University Law Center. After law school I worked for the Los Angeles office of Latham & Watkins, LLP. After four intense and rewarding years there, I left to become General Counsel and VP of an incredible, industry-changing start-up called Urban Mining Company (UMC) that manufactures rare earth permanent magnets. I now work for Phocus Law where I help run our practice focused on entrepreneurs, startups, and SMEs. I love what I do, and I'd love to be of help! My focus is on providing stress-free, enjoyable, and high-quality legal service to all of my clients. Being a good lawyer isn't enough: the client experience should also be great. But work isn't everything, and I love my free time. I've been an avid traveler since my parents put me on a plane to Italy at 9-months old. I'm also a music nut, and am still looking for that perfect client that will engage me to explain why Dark Side Of The Moon is the greatest album of all time. Having grown up in a remote, and gorgeous corner of Australia, I feel a strong connection to nature, and love being in the elements.
August 31, 2023
Jessica I.
Jess has been practicing law since 2018, but she's been in the business world far longer. Prior to law school, she gained valuable experiences managing in both retail and service industries. As an attorney, she combines practical real-world know-how with a deep understanding of the law. Learn more at www.voyagerlawmn.com
September 4, 2023
Tetyana J.
I am a highly accomplished and dedicated immigration attorney, renowned for providing top-tier immigration legal services that consistently exceed expectations. I am known for my expertise in offering exceptional representation across a broad spectrum of immigration cases, including EB-2 National Interest Waivers (NIW), O visas, EB-1A, family-based immigration, TPS, Adjustment of status, asylum petitions, and skillful advocacy in Immigration Court proceedings. My clients rely on my unwavering commitment to their immigration needs, trusting in my in-depth knowledge of the intricate legal processes and my steadfast determination to secure favorable outcomes. My reputation as a leading authority in the field is a testament to my unwavering commitment to delivering unparalleled, high-quality immigration services. In addition, I am fluent in Ukrainian and Russian.
September 5, 2023
Luisa A.
Luisa Alejos is the founder and owner of L.P.A. Law. She established her own firm to focus on providing clients with an exceptional level of personal service and support, trustworthy legal advice, and compassionate advocacy, consistent with her dedication to making service a cornerstone of her law practice and life. As a solo practitioner, her focus is personal injury, workers' compensation, and misdemeanor criminal defense but she also helps clients with contract drafting- particularly construction contracts and prenuptial agreements.
September 5, 2023
Annie G.
Attorney licensed and in good standing in the State of Ohio. Worked in the corporate division of a large law firm (Squire, Sanders & Dempsey), and as inside counsel for a technology company (America Online). Lived in 6 different states in a 12 year period. Took some time off of legal work to raise 4 kids. During that time kept active as a volunteer - Houston Volunteer Lawyers Program, Legislative chair of school board for 3 years, President of school PTA, PADS and local food pantry. Currently working as a Consultant for a health care company (Fast Pace Health). Looking to get back to transaction legal work. Can work remotely and travel to Ohio when necessary. Thank you.
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