An office space lease agreement is a formal contract between a landlord and an occupant who will be renting for purposes other than retail. In this setup, a standard office space would allow for client consultations, meetings, and a productive work environment. Like other leases, rent is normally calculated on a per-square-foot basis and would normally cost higher than residential leases. This is because offices are normally located inside a commercial property like a building.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current law. If you notice an error or outdated information, please contact us.
An office space lease is also called a business space lease agreement or an office rental contract. The name changes from one landlord to another, but the document does the same job.
Entering into this lease agreement has its pros and cons for both the landlord (also called the “lessor”) and the tenant (also called the “lessee”). Based on the nature of a typical lease agreement, either party may encounter challenges including but not limited to the following:
Ask the landlord for a written list of every charge on top of the base rent before you sign. Compare it with your budget so nothing surprises you later.
Despite the cons attached to an office space lease, there are many benefits from renting a commercial property including additional income, fixed rent, and the extra space for shared activities.
For a growing company looking for professional office space, leasing a commercial property is the best option. An office space lease can either be brief or lengthy, varying from month to month to annual lease agreements. Longer rentals, which used to be for 25 years, are now down to just 3 to 5 years as businesses no longer target single-limit goals but rather aim to grow exponentially.
So, they benefit best from a shorter office space lease duration that adapts to their business dynamics. In order to make sure which one fits you best, here are the types of leases that suit your office space lease needs:
This is perfect for startups or new companies, which are unsure of their business forecast. Through a short-term lease, the tenant will not be forced to be stuck in an unprofitable location. However, this type of office space lease arrangement should expect the base rental amount to shoot up at the end of each year as a result of market inflation.
In this type of office space lease, a business tenant can lock in a cheaper rent amount and a slower percentage increase. The downside to this lease is that the lessor usually requires a large down payment amount or security deposit.
If you need office space for a brief period of time to complete a new deal, you can consider entering into a licensing agreement with the lessor rather than signing a fixed lease. This is an excellent solution for both the tenant and the lessor, as it allows them to voluntarily end the contract without difficulty. However, if the premises become profitable for the business, the tenant may not be able to immediately renew the license agreement.
In a co-working setup, the landlord is responsible for all costs and services. The tenant has zero obligations except to pay the monthly dues or a fixed membership rate to the lessor or co-working business owner. However, this set-up does have its cons as the premises are shared with other businesses.
In a gross lease, the lessor shall be in charge of paying for real estate fees, insurance, and CAMs (Common Area Maintenance). Meanwhile, the tenant is for all utilities and amenities.
Costs are shared between a landlord and tenant in a modified gross lease. However, the division of expenses shall first be negotiated and written in the contract. The specific amount shouldered by the lessor and the lessee should be divided based on the terms in the office space lease contract.
In a triple-net lease, the lessor ensures that the foundation and basic features of the premises (e.g. roof and parking lot) are in decent condition. On the other hand, the tenant pays for real estate fees, insurance, and CAMs (Common Area Maintenance) as well as electricity and other facilities.
Unlike a regular office space lease, the lessee or customer does not need to sign a detailed legal document nor do they need legal advice. Co-working agreements are much simpler and the lessee is normally free to sign up for a “membership” that lasts for 30 days or less.
If the lessee decides to pay for a longer package, the lessor usually gives discounts on the membership amount. This setup is particularly popular among freelancers, e-commerce entrepreneurs, artists, and small companies because it helps break away from the loneliness and monotony of working from home or in a coffee shop.
Below are some of the most crucial points to include in your commercial lease agreement. Use the numbered list as a checklist when you review the template or a draft from your landlord, and talk each point through before anyone signs.
1. A list of all tenants’ names
As a result, each occupant is legally liable for all terms, including the entire rent and fair use of the premises.
2. Occupancy restrictions
To stop occupant accusations of unlawful entry or invasion of privacy, your lease contract should spell out access to the property. This protects your right to choose who enters your office, visits employees, and uses your company’s parking spaces.
3. The tenancy’s length
Office space leases are usually long-term and only end prematurely if either the landlord or tenant sends a written notice of termination or non-renewal. It is therefore important to write the dates when the occupancy started and when it is expected to end, keeping in mind what is best for your company’s plan.
4. How to pay the rent
To avoid misunderstandings and clashes with owners, include information like:
5. Terms
The tenant must first inspect each clause in the contract since everything agreed upon will eventually be implemented. It is important to note that both the owner and the tenant can negotiate on several aspects of the lease except for the general guidelines or terms of use of facilities, which apply to each and every tenant. Both the lessee and the landlord must also seek legal advice before finalizing the terms of their contract.
6. Servicing and repairs
The easiest way to avoid problems with rent withholding and other issues (especially over security deposits) is to spell out the repair and maintenance obligations divided between the lessee and the lessor. Apart from the rent, the lease term, release clauses, dilapidations, and service charges, should also be discussed in the contract.
7. Restriction on criminal activities by tenants
Contracts usually add rules to avoid unprofessional behavior of the lessee such as unnecessary noise, and most especially criminal activity. This minimizes your exposure to lawsuits from residents and neighbors, but it is important to get legal advice before permanently signing the contract to avoid loopholes in the fine print.
8. Animals
While animals are normally banned from commercial areas, many offices are becoming more and more pet-friendly. If you don’t want dogs or cats, make sure the contract expressly states so. If you should accept dogs, make a list of any special requirements, such as size or limit.
9. Other
Any such regulatory requirements, such as limitations on the type of company or working set-up, should be stated in the contract or rental agreement. The leasing agreement should have important guidelines and regulations about parking and the use of shared areas.
| Document Name | Office Space Lease Agreement Form |
| Other Names | Business Space Lease Agreement, Office Rental Contract |
| Avg. Time to Fill Out | 18 minutes |
| # of Fillable Fields | 114 |
| Available Formats | Adobe PDF |
These steps follow the fillable PDF template on this page, from the opening paragraph to the signature block. The form has 114 fillable fields and takes about 18 minutes to complete. Download it first, then work through the steps in order.
The screenshots under each step show the FormsPal Office Space Lease Agreement template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
Lease date, Lessor and Lessee. Enter the day, month and year of the Effective Date, then the Lessor's name and address and the Lessee's name and address in the opening paragraph.
Premises, term and rent. Fill in the city, county and state, then the street address or legal description of the Premises. Next enter the length of the term with its start and end dates, the rent amount and period, the due date, and where or how rent is paid.
Rent options and CPI adjustment. Tick one box in each pair: rent in advance or in arrears, rent starting on the Effective Date or on a date you enter, constant or adjusted rent. If you tick the CPI box, enter how often the increases apply. Initial the INIT lines at the foot of page 1.
Late charge, security deposit and use. Enter the late-charge percentage and the returned-check fee. Tick either no security deposit or the deposit box and enter the amount. Then state the purpose the Premises will be used for.
Page 3: initials. Page 3 has no blanks. Read it and add your initials on the two INIT lines at the foot of the page.
Condition, assignment and utilities. Tick the as-is box or the box where the Lessor performs listed work and list that work. Tick the assignment option that fits, adding terms if you choose the second. Tick the utilities option and list any utilities the Lessor provides.
Electric sub-metering fee. If the electricity is sub-metered, tick the box and enter the monthly administrative fee. Initial the INIT lines at the foot of page 5.
Signs, if the Lessee may put up signs. Tick the first signs box if the Lessee may put up signs, and initial the INIT lines at the foot of page 6.
Signs, if there is no exterior signage. Tick the second signs box on this page instead if the Lessee will not install exterior signage. Initial the INIT lines at the foot of page 7.
Page 8: initials. Page 8 has no blanks. Read it and add your initials on the two INIT lines at the foot of the page.
Addresses for the Lessor and Lessee. Enter the name, address and phone number where the Lessor and the Lessee can each be reached.
Copy-to contacts. Enter the name, address and phone number of anyone who should get a copy of the correspondence for each party, or leave blank if none. Initial the INIT lines at the foot of page 9.
Page 10: initials. Page 10 has no blanks. Read it and add your initials on the two INIT lines at the foot of the page.
Rules and regulations, and brokers. Tick whether separate Rules and Regulations apply, then tick whether brokers were used. If so, enter the broker's name and the party responsible for the commission.
Holdover and signatures. Tick the holdover option that fits (month-to-month, or tenant at sufferance with the rent percentage you enter). Then have the Lessor and the Lessee each complete the By, Title and Name lines under IN WITNESS WHEREOF.
A lease works best when it comes at the end of a clear process. These five steps take you from planning your space needs to signing the lease, and the template above can serve as the draft you bring to the landlord. Keep a signed copy of the final lease for your records.
Set up a plan.
When people come to an agent for the first time, they’ve usually already scoured the area for office accommodation. However, it is best to first assess your business needs by answering the following questions:
Look for a rental office space.
Finding an ideal office space is likely to be one of the most challenging tasks every lessee will face. Fortunately, there are online platforms that help speed up the process by publishing the premises’ rent amount, terms, and other default listing information.
Once you find a match, it is best to immediately visit the premises to inspect any structural damage and red flags such as noisy tenants and a problematic landlord-tenant setup. Before you sign an office space lease, have a trusted engineer or General Contractor (GC) inspect the space. Knowing this ahead of time will save you money, as well as help you negotiate with your landlord.
Present a proposal.
A commercial lease is not the same as that of a residential rental. Since office spaces typically need to be improved or overhauled, the lessee will first need to draft the layout of the space.
Any change must be discussed in the landlord-tenant agreement along with other business-related matters. Though there are several contract templates which you can easily download and use, it is still best to first consult someone who can give sound legal advice. Once the owner and the tenant agree on the proposal and its terms, you can now proceed to the next step.
Seek guidance.
Many companies venture on their own, assuming that they can successfully negotiate a contract without seeking technical or legal advice. However, seeking advice from experts or seasoned entrepreneurs can help you evade problematic situations.
Sign the lease.
When you’ve reached an agreement that both the owner and the tenant are satisfied with, you can now sign the lease contract. If you do not have a commercial lease template for your contract, you can download and use one of Formspal’s many free commercial rental templates.
Though finding your first office space takes a lot of work, you can use Formspal’s free agreement templates to ease the process. With a bit of forethought and a good business plan, you’ll soon find yourself transforming a space into your business’s driving force.
A commercial office lease is a contract between a landlord and a business that rents commercial space for offices and client meetings. It spells out the rent, the length of the term, and how the costs of the building are shared between the landlord and the tenant.
A lease can run from month to month up to several years. Short-term and annual leases suit new tenants that are unsure of their forecast, while long-term rentals can lock in a lower rent and a slower yearly increase.
The three common lease types split the building costs in different ways:
Read the cost clauses before you sign so you know which bills are yours.
Yes. Download the free fillable PDF from this page and type your answers into its fields. You can also fill in and edit the PDF online with the FormsPal PDF editor, then print or save your copy.
A co-working agreement is much simpler, and members usually sign up for a membership that lasts 30 days or less. An office space lease is a longer, more detailed contract for a space that your business rents for itself.
General information, not legal or tax advice.
