Business Office Lease Agreement: A General Guide
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- Avg cost to draft a Commercial Lease: $880.00
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What is a Business Office Lease Agreement?
A business office lease agreement, also known as a commercial lease or office space lease, is a legally binding agreement that establishes the terms and conditions between a tenant (lessee) and landlord (lessor) for renting an office space. Some of the details this lease agreement will include are:
- Rent amount
- Lease length
- Maintenance and repairs
- Permissible use of space
- Modifications and improvements
- Subleasing rights
Tenants that are asked to sign business office lease agreements are typically business owners looking for office space to house their business and employees. Landlords are typically individuals or businesses that own office buildings that rent to tenants for the purpose of making rental income.
The terms of a business office space lease will vary from other types of commercial leases, like leases for retail space, since the rent amount is typically not tied to the performance of the business. It is common for office leases to have a term of five to ten years, but varies depending on the agreement.
Common Types of Leases Used for Business Offices
There are many different versions and flavors of lease agreements used for commercial real estate. Below are commonly used lease types for business office space:
- Net Lease. A net lease requires the tenant to pay a base rent amount, plus fees associated with maintenance, utilities, repairs, etc. There are different types of net leases, but a good way to think about them is that the tenant is responsible for base rent and costs associated with the day-to-day property.
- Gross Lease. A gross lease is simply when a tenant agrees to pay monthly base rent, and the landlord pays for everything else related to running the property.
Key Terms in a Business Office Lease Agreement
Business office lease agreements can vary based on their terms, but below are some common terms to know and understand:
Rent Amount and Rent Escalations
One of the most important terms in a business office lease is the amount the tenant will be paying in rent. This will be clearly outlined in the lease agreement. There may also be rent escalations included for future years.
Lease Term
The lease agreement will outline how long the length of the lease will be. It is common to see lease terms for office space at five to ten years.
Modifications to Property
Given office space is typically built out to support the business renting it, office leases will have language included that indicates what the tenant is allowed to do in terms of improving and modifying the property. It is important for the tenant to make sure this language aligns with the plans they have for the office space.
Maintenance, Repairs, and Utilities
There are typically month-to-month costs associated with running a property, which can be categorized as maintenance, repairs, and utilities. The lease will outline who is responsible for these costs.
Lease Termination
If a business files bankruptcy or there is a dispute between the landlord and the tenant, there may be a reason to terminate the lease. The lease will outline what qualifies as acceptable reasons to terminate the lease and the process by which the landlord or tenant can use to terminate the lease.
Subleasing
Some businesses may want to sublease part of an office space they have leased, given it can help supplement income to help pay for the rental. The business office lease agreement will outline if subleasing is permissible, and if so, anything the tenant will need to do or be responsible for.
Seeking Professional Advice
If you are needing to draft a business office lease agreement or have one reviewed, we recommend seeking professional legal advice. Given the size of the potential transaction (five to ten years of rent payments), you want to make sure your rights are protected and you’re setting yourself up for success. Hiring a commercial real estate lawyer to guide you through the process will help, since they are well versed in the lease terms you will need to know.
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Meet some of our Business Office Lease Agreement Lawyers
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.
Brad T.
William Bradley Thomas, or Brad, is a seasoned attorney in South Carolina, offering expert counsel to both emerging and established businesses and individuals. His specialties encompass alcohol licensure, asset protection, business law, Counsel on Call Concierge Legal Service™, estate planning, NFA firearms trusts, legal research, and document review. Brad’s unique approach is informed by his rich experience and diverse background. Not only is he a devoted father to three daughters (Anna, Kate, and Jessica), but he also served as the assistant Oconee County, South Carolina attorney. A pioneer in the local industry, he co-founded Carolina Bauernhaus Brewery & Winery, the state’s first farmhouse brewery and winery. His other roles have included membership in the South Carolina Bar Association’s House of Delegates, a board member of the South Carolina Brewers Guild, and an affiliate member of the same organization. Moreover, Brad is a certified Design for Six Sigma (DFSS) Green Belt and has accumulated over a decade’s worth of experience conducting onsite audits and financial analyses on domestic and international secured credit transactions, totaling over $5 Billion across diverse industries. With such a comprehensive skill set, Brad can provide sound legal and business advice that can help you manage and expand your business operations effectively. He can assist with selecting and establishing the most appropriate legal entity for your company, securing and retaining federal and South Carolina alcohol licensure, securing company incentives, and drafting, reviewing, and negotiating favorable contracts. All these services are designed to minimize risk and maximize both earnings and tax savings. Brad also offers estate planning services. Recognizing that life’s ups and downs can sometimes distract from ensuring that your loved ones are well taken care of, Brad applies the same legal and business fundamentals to his estate planning practice. These services include the preparation of wills, NFA firearms trusts (gun trusts), power of attorneys, and advance directives. So when your day at the office is over, you can relax, knowing that your business is running smoothly and your family’s future is secure, thanks to a tailored estate plan. If you’re seeking a trusted ally to guide you in business and personal legal matters, contact Brad Thomas at bthomas@scattorneysatlaw.com or review his firms website at www.scattorneysatlaw.com and discover how he can help you confidently navigate and enjoy all aspects of your life!
"Brad was responsive, professional and very helpful. I would definitely recommend him."
Jennifer B.
I guide businesses and their owners through the intricacies of regulatory compliance, corporate governance, and high-stakes transactions. With a proven track record in deal structuring, due diligence, and building robust data protection and privacy frameworks, I deliver solutions that seamlessly align with my clients' goals while mitigating risks and driving success.
"I received exactly what I needed. The service was very professional, and what I appreciated most was the detailed, comprehensive review that was provided."
Samuel R.
My career interests are to practice Transactional Corporate Law, including Business Start Up, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Business Transactional Agreements, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the Super Lawyers Southwest Rising Stars list for 2024 - 2026. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, and also trademark registration and licensing.
"Reliable and responsive, was able to get back to me earlier then required to submit my documents."
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."
Jeffrey W.
Jeffrey W.
I am a business, transactions, contracts attorney. I was the sole in-house attorney for a good-sized staffing company. I can review and create nearly any type of document you need. I enjoy writing, reading, and editing contracts. I want to read your contract. If I cannot do it, I won't take the job and I won't charge you for what I cannot do. However, in reality, unless you need a 225 page financing agreement, is has never been an issue.
Yi S.
I am an attorney with 10 years of experience providing legal services in U.S. immigration. My comprehensive understanding of immigration regulations has achieved favorable outcomes and helped clients reach their goals. I handle a wide variety of immigration matters including family-based and employment-based non-immigrant and immigrant visas, with a specialization in business visas and particularly EB-5 investor visas, marriage-based petitions, and naturalizations among other immigration services. I am skilled in guiding companies and individuals through the complexities of U.S. immigration policies. Separately, I am licensed as a Florida Real Estate Sales Associate and have over 2 decades of experience with residential leasing, property management, contract work, and Homeowners Associations. I am adept at handling and resolving conflicts as well as facilitating real estate contracts and other transactions.
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