Office for Lease: Important Considerations

Closing a deal on an office for lease requires more careful consideration than a typical residential rental contract. The terms of the lease agreement can directly impact a business – positively or adversely – depending on how well negotiated the contract happens to be.

There are a number of considerations business owners will want to take into account when they examine an office for lease more closely. Beyond the basics of space and location, such things as permitted use, rental price, improvements and the definition of the under-contract premises can all play a very big role.

Permitted Use

This clause in an office lease agreement defines what the premises can and cannot be used for. It is vital for a business owner to fully understand the language in this part of a contract to make certain it defines the renter’s intended use for the space. If it does not, the contract will need to be renegotiated to allow the business to operate on the premises.

Rental Price

A lease agreement should clearly spell out the financials of the rental term. This includes not only the rental price per month, but also the length of the rental term, any anticipated cost increases and penalties for late payments.

When the rental price in an agreement does not suit, potential renters should make an attempt to renegotiate better terms. Especially in the case of a multiyear lease, it is important that the numbers fit the budget.

Stated Improvements

It is not at all uncommon for a renter to have to make improvements to the property for it to function properly for business use. In some cases, these improvements can be negotiated into the office for lease contract to benefit the renter. If substantial alterations to the property must be made, it can behoove the renter to negotiate them into the lease agreement along with a credit on rent or some other incentive.

If the property owner is expected to make improvements to the property so that it may be used for the business purpose, these actions should also be defined in the contract to lease.

Definition Of The Premises

The contract on an office for lease should also clearly define what property falls under the lease agreement. Beyond the office itself, parking facilities, for example, should also be included in the definition.

Hiring Legal Help

Closing the deal on an office for lease is an important step to help a business grow. Making sure the contract properly reflects the terms of the agreement and works in favor of the renter is important for business owners. A commercial real estate attorney can help with contract negotiations. Hiring one to review a lease contract and assist with negotiations is just sound business.