Business Office Lease Agreement: A General Guide
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Quick Facts — Business Office Lease Agreement Lawyers
- 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
Laurie R.
Business-minded, analytical and detail-oriented attorney with broad experience in real estate and corporate law, with an emphasis on retail leasing, sales and acquisitions and real estate finance. Extensive experience in drafting complex commercial contracts, including purchase and sale contracts for businesses in a wide variety of industries. Also experienced in corporate formation and governance, mergers and acquisitions, employment and franchise law. Admitted to practice in Colorado since 2001, Bar No. 33427.
"Absolutely incredible experience working with Laurie! I certainly will work with her hopefully in the future, and would highly recommend working with her for commercial lease agreement review. Very detailed, and extremely quick and responsive!"
Forest H.
Forest Hamilton is the founder of ContractsCounsel Law. He is a business and transactional attorney whose practice centers on the contracts companies and entrepreneurs rely on every day. He drafts, reviews, and negotiates operating agreements, asset and membership-interest purchase agreements, master services and supply agreements, NDAs, employment and contractor agreements, and commercial leases. Forest has handled many acquisitions of online businesses, including Amazon FBA brands, Shopify stores, and YouTube channels. He also advises on business formation, capital raising, commercial real estate, oil and gas matters, and estate planning. His clients range from first-time founders to established companies and investors across the U.S. and abroad. On every matter, Forest aims for a clear, practical document that protects the client’s position without creating friction in the deal. He began his career in commercial litigation in Florida and has advised businesses from Nashville since 2005. He is licensed in Tennessee, Florida, and Texas.
"Forrest had been very helpful to work with in several areas."
Alexander M.
Broad area practice including Business (domestic & international), IP, Employment, Family Law, Administrative, etc. My focus is a direct, no-BS approach with fast turn around times on completed work.
"I highly recommend him! He prepared an entire prenuptial agreement for us in just a few hours, and we even had direct communication later in the evening to make sure everything was completed properly. He was extremely responsive, professional, and efficient throughout the entire process. Without a doubt, I would recommend him to anyone looking for a reliable and dedicated attorney."
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."
Joe S.
M. Joseph “Joe” Smith is the founder of Celina Law, P.C. and Amirext LLC. Licensed to practice law in Connecticut and Texas, he helps clients with commercial contracts, mergers and acquisitions, financing, corporate governance, and disputes. Whether reviewing a straightforward agreement or guiding a complex transaction, Joe brings practical judgment and personal attention to matters large and small.
"Joe was responsive, communicative and a real advocate for me. He was thorough with the work, and managed expectations very clearly. I would 100% hire Joe again, and may do so very soon."
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."
Mathew K.
Mathew Kerbis is The Subscription Attorney. He’s on a mission to affordably serve clients at scale via the subscription model and inspire attorneys to abandon the billable hour. He founded the law firm Subscription Attorney LLC after working for private practice law firms for nine years. His firm leverages automations and artificial intelligence to offer more accessible and reasonable prices like legal advice starting at $19.99/month and $49.99/page.
"Mathew was pleasant and professional. He passed along great legal knowledge and provided an excellent service at a reasonable rate. I would definitely use his services again."
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Browse Lawyers NowLawyer Reviews for Business Office Lease Agreement Projects
Review Commercial Lease for UPS Store Franchise – Dallas, TX
"Dolan was excellent — responsive, knowledgeable, and clearly understood the nuances of a franchise retail lease. He read our LOI carefully and made sure the lease reflected what we negotiated. Highly recommend and will be working with him again."
Abels Bagels Summerlin Commercial Lease Review
"Zach was easy to work with and helped a lot with understanding my commercial lease agreement!"
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"He was great to work with and efficient!"
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"Will did a great job of reviewing our commercial lease and explaining the legal implications in a clear way. We hope to work with him again in the future."
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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