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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Thomas D.
I graduated from the University of Wisconsin Law School. Upon graduation, I went to McDermott, Will & Emery in Chicago and practiced corporate, real estate and tax law. I then joined Godfrey & Kahn where I became a shareholder in the real estate group, head of real estate lending and continued to practice corporate law. At these firms, I received excellent training and represented some of the largest and most innovative clients in the US. After practicing law for 15 years, I founded a real estate development company. I built a multi-million dollar company and developed many significant projects. I sold the company and was recruited for senior positions by two other real estate companies. I continued to hone my legal skills at these companies by negotiating and drafting countless documents for my businesses. The combination of my legal and business experience helps me foster the growth of clients' businesses, solve their problems and guide them through difficult matters.
"Tom was amazing and patient. He explained everything and was incredibly fast. Thank you and would use his services again."
Agnes M.
Agnes Mombrun Geter is the Founder and Managing Attorney of Mombrun Law, PLLC. She is an experienced attorney and is a member of the Florida Bar, New Jersey Bar, and the Pennsylvania Bar. The firm's practice focuses on Estate Planning, Business Law, and Debt Settlement including IRS Debt Relief. The firm's goal is to simplify the law and provide clients with the confidence and information necessary to make their decisions. The firm also provides project-based legal services to other attorneys and law firms, along with assisting as personal counsel and local counsel on legal matters.
"Ma. Agnes was very kind and thorough. I highly recommend her and would hire her again if needed."
Nicholas V.
I am a solo practitioner, and manager of the Law Office of Nicholas J. Vail, PLLC, with offices in Denver, Colorado and Austin, Texas with a focus on general business and real estate contracts.
"Nicholas was great! Highly recommend and I will be using his services again."
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."
Rebecca S.
I absolutely love helping my clients buy their first home, sell their starters, upgrade to their next big adventure, or transition to their next phase of life. The confidence my clients have going into a transaction and through the whole process is one of the most rewarding aspects of practicing this type of law. My very first class in law school was property law, and let me tell you, this was like nothing I’d ever experienced. I remember vividly cracking open that big red book and staring at the pages not having the faintest idea what I was actually reading. Despite those initial scary moments, I grew to love property law. My obsession with real estate law was solidified when I was working in Virginia at a law firm outside DC. I ran the settlement (escrow) department and learned the ins and outs of transactions and the unique needs of the parties. My husband and I bought our first home in Virginia in 2012 and despite being an attorney, there was so much we didn’t know, especially when it came to our HOA and our mortgage. Our real estate agent was a wonderful resource for finding our home and negotiating some of the key terms, but there was something missing in the process. I’ve spent the last 10 years helping those who were in the same situation we were in better understand the process.
"Rebecca you were awesome I appreciate you working with me and helping me get this done. I look forward to working with you in the future."
June 25, 2024
Peter C.
A lawyer for small businesses throughout NY. Obtain affordable legal assistance for your business & personal needs without having to pay inflated hourly rates or retain costly, full-time legal counsel. Helps with licensing, contracts, corporate formation, problems with employees, litigation management/avoidance, regulatory compliance, and intellectual property, among other things.
John L.
I have been practising law for over 30 years. I have extensive legal experience in contract disputes and drafting demand letters. I have been lead counsel in over 100 civil and criminal jury trials and have extensive litigation stradegy knowledge. I belive my experience would be of great benefit to any prospective client.
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Commercial lease review for a physical therapy clinic in Chapel Hill, NC
Location: North Carolina
Turnaround: A week
Service: Contract Review
Doc Type: Commercial Lease
Page Count: 15
Number of Bids: 5
Bid Range: $450 - $650
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