Business Office Lease Agreement: A General Guide
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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
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."
Daniel R.
NY Admitted Lawyer 20+ years of experience. Focused on Startups , Entrepreneurs, Entertainers, Producers, Athletes and SMB Companies. I have been a part of numerous startups as Founder, CEO, General Counsel and Deal Executive. I have been through the full life cycle from boot strap to seed investors to large funds-public companies to successful exit. Let me use my experiences help you as you grow your business through these various stages. We saw a market for an on-line platform dedicated to Virtual General Counsel Services to Start Ups and Private Companies.
"Daniel did a thorough review of the agreement I received from my company. He was professional and worked quickly."
Joshua B.
Josh Bernstein has been serving real estate and corporate transactional clients since 2002. His experience is varied, and he enjoys working on and puzzling out novel and complex corporate and real estate matters. Josh’s experience includes, among other things, the following: representation of public companies in connection with SEC reporting and compliance work (proxies, 10-K’s; 10-Q’s; 8-K’s, etc.); representation of public and private company securities issuances (including private placements, and other similar offerings); assistance in structuring and drafting joint ventures, both for investors and operating partners, and including both real estate and corporate ventures; handling public and private company mergers and acquisitions; and asset sales and dispositions; assisting clients, big and small, with real estate acquisitions, sales and financings; managing large-scale and multi-state real estate portfolio acquisitions, dispositions and financings; complex condominium creation, structuring and governance work, including: commercial condominiums, use of condominiums as a land planning tool, wholesale condominium property acquisitions and dispositions, and rehabilitating failed or faulty condominium legal structures to make ready for sale; development of restrictive covenants and owners’ association documents for master-planned communities; compliance with federal statutes governing real estate sale and development (including, without limitation, the Interstate Land Sales Full Disclosure Act, the Housing for Older Persons Act, and the Americans with Disabilities Act); representation of real estate lenders, for both improved and unimproved property, and including numerous construction financings secured by real estate; assistance with commercial leasing; from both the landlord and tenant side, and including condominium leasing; training residential home and condominium sales staff for compliance with applicable local and federal law; and workouts of all kinds. When he’s not busy lawyering, Josh may be found watching 80’s commercials, flying a single-engine plane, playing poker, or trying to be a good dad.
"Josh has been extremely helpful sorting through issues with a tenant."
Jonathan G.
Small Business Attorney licensed in Texas and Colorado. Based in Dallas, appointments available in DFW area.
"Jonathan was above and beyond thorough and delivered that and more. Response time was great, I highly recommend him."
Michael K.
A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.
"Amazing to work with, answered all my follow-up questions without hesitation. Highly recommend Michael."
Sean S.
Commercial and government contracts attorney with 10+ years of experience delivering business-aligned legal solutions to global companies, research institutions, and startups across tech, manufacturing, and regulated industries. Passionate about transforming legal workflows through AI and automation. Proven track record advising business teams and executives on complex commercial agreements, designing scalable contract playbooks, and aligning legal guidance with user needs. Strong communicator skilled at bridging legal and operational teams.
June 28, 2021
Joshua C.
Attorney Joshua K. S. Cali is a respected business, estate planning, and real estate attorney based in Ashland serving Middlesex County and other nearby areas. Joshua graduated summa cum laude from Bentley University in Waltham, MA, and from UCLA School of Law in Los Angeles. Before starting his own firm, Joshua practiced estate planning for high net worth clients at a boutique law firm in San Diego, CA.
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Review a commercial lease created by my General Contractor
"Great experience, Lori's response was quick, even on a weekend, and job completed. I added the advice and project done. Thank you."
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"Tom was amazing and patient. He explained everything and was incredibly fast. Thank you and would use his services again."
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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."
Review Commercial Lease for a Boutique Fitness Studio
"I had a relatively quick and satisfactory experience with Zachary to review a commercial lease. I would recommend him to other projects."
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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