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: $690.00
- Lawyers available: 283 real estate lawyers
- Clients helped: 596 recent real estate office lease projects
- Avg lawyer rating: 4.97 (100 reviews)
What is a Real Estate Office Lease?
A real estate office lease, also known as a commercial lease agreement, is a legally binding agreement made between a landlord (lessor) and tenant (lessee) for the purpose of renting commercial space for business offices. The tenant, typically a business owner, will need to sign the office lease as a requirement for renting the commercial space.
Real estate office leases can have terms from five to ten years in length, so it is a big investment made by the tenant. Because of this, it is important that the tenant (lessee) fully understands the lease terms included in the agreement, and negotiates terms that may make the lease more favorable to the business.
Examples of Commercial Real Estate Property
Commercial real estate property is property that is rented for commercial or business use, and it not just limited to office spaces. Businesses of all sizes may need to rent commercial space to store inventory, give their employees a place to work, have a retail space for customers, and more. Some examples of commercial property include:
- Office space
- Warehouses and industrial space
- Retail space (stores, shopping centers, etc.)
- Leisure space (hotels, restaurants, sports facilities, etc.)
- Healthcare space (medical, dental, nursing homes, etc.)
Common Terms in a Real Estate Office Lease
A real estate office lease will have varying terms, but below are some you will typically find which are important to understand:
Cost of Rent & Escalations
This clause will typically include the monthly fee paid by the tenant to lease the office space. Rental rates can vary, but is typically calculated off a price per-square foot ($/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
Kendall C.
Kendall is a data privacy attorney by trade, and is an active member of the Bar in Texas and Georgia. In litigation, he handled thousands of cases to final disposition in litigation throughout the United States, Latin America, & Europe. As corporate counsel, he guides companies through the marketing and advertising industry and, by extension, many other industries. Further, Kendall is an adherent to the Ben Hogan school of swing thought and, by natural extension, is a proponent of accurate wedge play through residential neighborhoods. He occasionally aspires to a career in turf management.
"Kendall was a joy to work with. He was very knowledgeable on a number of related matters and was able to guide me to an appropriate core master services agreement for my new company."
T. Phillip B.
Attorney creating plans and strategies to help individuals create, build, protect and pass on wealth.
"Very knowledgeable, helpful and responsive, does comprehensive work on short notice. I would recommend and work with again."
Stephen R.
Steve Reich is licensed to practice in both New York and Massachusetts and is based in Boston. He assists with environmental litigation and other complex litigation and heads the firm's intellectual property practice, including copyright and trademark registration and protection. Other practice areas include commercial contract drafting and civil litigation.
"Stephen was responsive, clear, and candid. He turned the work around quickly, welcomed my input, and offered honest, practical advice throughout. I would gladly hire him again."
Ricardo A.
Ricardo Aponte Parsi is a real estate and corporate counsel with a 22+-year track record of assessing risk, managing litigation, and building compliance systems to protect organizational interests. Trusted business partner and problem solver, dedicated to delivering exceptional results that advance business objectives through preventive counseling, strategic risk management, and shrewd advocacy. Collaborative team leader and project manager who builds relationships, leads change, and communicates effectively with private and public stakeholders. He obtained a bachelor's degree from Syracuse University (1994) with a major in International Relations and his law degree from the Interamerican University of Puerto Rico School of Law (2000). In May 2014, he completed a Master of Laws from Northwestern University School of Law and a Certificate in Business Administration from IE Business School in Madrid, Spain. In 2018, he completed a second LL.M. at Georgetown University Law School in Securities and Financial Regulation. In 2022, he completed a certification in Privacy Law from Seton Hall University School of Law. He was president of the Board of the Puerto Rico Education Council, the licensing agency for the Commonwealth, and is currently the Chairman of the Board of Trustees of the San Juan Community College. Since November of 2024, he has worked as an attorney-advisor for the United States Air Force Installations, Energy and Environmental Law Division (SAF/GCN) at Lackland Air Force Base, in San Antonio, Texas.SAF/GCN provides legal and policy advice to members of the Secretariat, the Air Staff, and the Space Staff on virtually all matters relating to the Department’s 180 installations, nearly 10 million acres of real estate, Base Realignment, and Closure; annual $7 billion installation and operational energy budgets; annual multibillion-dollar military construction program; $8.3 billion military privatized housing portfolio; programs for environmental planning, compliance, and restoration and natural and cultural resources management; and programs for safety and occupational health. The Division advises the Center of Excellence for Environment, Facilities, and Installations and the Energy, Environmental, and Installations Directorates within the Air Force Civil Engineer Center. Experienced with estate planning, wills, trusts, prenuptial agreements and powers of attorney.
"Ricardo was great to work with. Delivered everything on time as promised and even identified areas where would could add additional protections. Highly recommend."
Allan K.
After graduating Columbia University and The University of Pennsylvania Law School, Allan Kassenoff spent 25 years as a litigator representing Fortune 100 companies, first at Kaye Scholer, LLP and then as a partner at Greenberg Traurig, LLP. Amongst the many awards he has received over the years, Allan has been named one of the “Leading Litigators in America” by Lawdragon 500 and a “Local/National Litigation Star” by Benchmark Litigation.
"Allan was great! I really appreciated his quick turnaround time and the thoroughness of his review. His comments were clear, thoughtful, and communicated very well. I would definitely recommend working with him."
Faryal A.
Ms. Ayub is an attorney licensed to practice in Texas. Before moving to the US, she has a number of years of experience in contract review, analysis and drafting. Ms. Ayub is available to help you with your legal problems, as well as filling LLC and other business entity formation documents. To know more about her practice, please visit https://ayublawfirmpllc.com/.
"Faryal was thorough and punctual. She did a great job of helping me with what I needed and thinking through what I had not considered."
February 24, 2023
Candace M.
For over 20 years, as an attorney and real estate broker, Candace has used her passion for business and real estate to help her clients succeed as business owners, entrepreneurs Realtors, and real estate investors. She and her team go above and beyond to simplify and solve those issues which trouble her clients. From the simple to the complex, she is ready to help. Her experience includes, Real Estate law, Contracts, Business Formation, Business Operating AGreements and Entrepreneurial counseling.
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Browse Lawyers NowLawyer Reviews for Real Estate Office Lease Projects
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"Amazing to work with, answered all my follow-up questions without hesitation. Highly recommend Michael."
Review Commercial Lease for a Boutique Fitness Studio
"Zachary was amazingly quick with my review, and although he was very communicative, his comments were so clear and thorough that I didn't require a follow-up discussion. Also, the contracting party accepted his recommendations with no pushback. Thanks!"
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"Thank you!"
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"Zachary was prompt, clear, and helpful in reviewing our commercial lease agreement and providing redlines. Would be happy to work with him again."
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
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