Office Space Lease Agreement

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An office space lease agreement is a contract for renting business workspace. It sets the rent, the term and each party's costs, whether the term is short or long. Businesses and landlords can download this free fillable PDF for a short term office lease.

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.

What Is a Short Term Office Lease Agreement?

A short term office lease agreement is an office space lease with a brief fixed term or a rolling month-to-month term, so a business can move or renegotiate without a long commitment.

The term is a blank you fill in. This template asks for the length of the term with its start and end dates, so the same form serves a short rental and a longer stay. "Short term" has no fixed meaning in this page's sources, so write the actual dates instead of relying on the label.

The rest of the contract works like any lease agreement. It names the landlord (the form says "Lessor") and the tenant (the form says "Lessee"), describes the premises, and sets the rent, the deposit and the use of the space.

Short Term vs. Long Term Office Lease

A short term office lease gives a tenant flexibility at a less certain price, while a long term rental gives a steadier price in exchange for a longer commitment to the premises.

Point to compare Short term office lease Long term office lease
Commitment Easier to leave an unprofitable location Tied to the premises for longer
Rent Can rise at each renewal Can lock in a lower rent and a slower yearly increase
Best fit Startups and new companies unsure of their forecast Established businesses that want a stable address

A lease can run from month to month up to several years.

When a Short Term Lease Fits

A short term office lease fits a business that expects its headcount, its market or its budget to change soon and does not want to be stuck in space it may outgrow.

  • A team opening an office in a new city
  • A company waiting for a larger space to become ready
  • A business finishing a project with a set end date

The trade-off is less certainty at the end of the term. The landlord may raise the rent or decline to renew unless the lease already gives you that option, so settle renewal before you sign.

Executive Office Suite, Coworking and License Agreements

An executive office suite, a coworking membership and a license agreement are lighter ways to use office space than a fixed office lease, and each trades control of the space for flexibility.

Executive Office Suite Lease Agreement

An executive office suite lease agreement rents a private office inside a shared, serviced suite, and the monthly charge usually bundles services such as reception and meeting rooms.

The main risk is confusion over what the charge includes. List each service in writing, and say which ones cost extra. On this template, the utilities step gives you a place to list what the Lessor provides.

Coworking Agreement

A coworking agreement is a simpler membership for a shared workspace, in which the operator handles the costs and services and the member pays monthly dues or a fixed membership rate.

The downside is that the premises are shared with other businesses.

License Agreement

A license agreement gives a business permission to use office space without the possession a lease gives a tenant, which makes it an alternative to signing a fixed lease.

It often covers a brief period, such as the time needed to complete a new deal, and it suits both sides when either may want to end the arrangement without difficulty. If the premises turn out to be profitable for the business, however, the licensee may not be able to renew right away.

Gross, Modified Gross and Triple Net Office Leases

Office lease agreements come in gross, modified gross and triple net types, and the difference is which party pays property taxes, insurance and common area maintenance.

Lease type The landlord usually pays The tenant usually pays
Gross lease Property taxes, insurance and common area maintenance Utilities and amenities
Modified gross lease The share written in the contract The share written in the contract

Rent on any of these is often quoted per square foot, so compare the full monthly cost and not the base rate alone. Read the cost clauses before you sign so you know which bills are yours.

Why Lease an Office Space?

A business leases an office space to gain a professional address, room to meet clients and shared amenities, but the base rent is only part of what the lease will cost.

Income vs. Expenses

An office can earn its keep for a small or medium business, as long as the extra charges on top of the base rent stay inside the budget you planned.

  • Pros: The leased premises can raise the company's credibility, especially after leasehold improvements. The office may also serve as a place to persuade clients and close deals.
  • Cons: Extra charges may cover parking spaces, common areas, insurance and maintenance of shared space. A landlord may also add prorated real estate taxes, late penalties and upkeep for the entire property, and will often hold a security deposit for the length of the contract.

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.

Amenities vs. Restricted Use

Amenities such as a lobby, a waiting area and a cafeteria give a tenant extra space without the entire cost, although shared areas come with building rules that limit their use.

  • Pros: Employees can use common areas that stretch from the lobby and the waiting area to the rooftop and cafeterias.
  • Cons: Building staff can be strict about shared areas, and parking slots are often limited. A business that depends on client visits may want a separate parking space lease to reserve slots.

What Should an Office Space Lease Agreement Cover?

An office space lease agreement should cover who the tenants are, who may use the space, the term, the rent, repairs and building rules, whether you use this template or the landlord's draft.

Use the points below as a checklist when you review the document, and talk each point through before anyone signs.

The Names of All Tenants

The names of all tenants belong at the start of the contract, so nobody has to guess which people or companies agreed to pay the rent and follow the terms.

Use each company's full legal name, and say whether each tenant answers for the whole rent or only a share of it.
Step 1 to filling out an office space lease agreement tenants names

Occupancy Restrictions

Occupancy restrictions spell out who may use the office, who may enter it and who controls its parking spaces, which heads off arguments about access later on.

Cover employees and visitors, and say when the landlord may come in.
Step 2 to filling out an office space lease agreement form occupancy restrictions

The Length of the Term

The length of the term is the date the occupancy starts and the date it is expected to end, along with any notice the parties agree to give to end the lease or not renew it.

On a short term office lease, also say what happens on the end date: the lease ends, it renews, or it rolls into a month-to-month rental.
Step 3 to filling out an office space lease agreement sample tenancy length

How to Pay the Rent

The rent clause tells the tenant how much to pay, when each payment falls due, how to pay it and what happens when a payment arrives late.

To avoid misunderstandings and clashes with owners, include information like:

  • Default modes of payment (such as "personal check only")
  • Monthly due date of the rent
  • Amount for late fees upon missing the due date
  • Grace period (if applicable)
  • Amount of the deposit
    Step 4 to filling out an office space lease agreement template ways of payment

Terms You Can Negotiate

The owner and the tenant can negotiate several aspects of the lease before signing, although general building rules on the use of facilities usually apply to each and every tenant.

A lawyer can review the draft and explain any clause you are unsure about.

Servicing and Repairs

Servicing and repairs need a clear clause that divides maintenance between the lessee and the lessor, which is the easiest way to avoid disputes over withheld rent and security deposits.

Also discuss release clauses, dilapidations and service charges.
Step 6 to filling out an office space lease agreement form servicing and repairs

Conduct and Criminal Activity

A conduct clause sets limits on behavior such as unnecessary noise and bans criminal activity, which protects the landlord, the other occupants and the neighbors of the building.

Animals

Animals are normally banned from commercial areas, but many offices are becoming pet-friendly, so the contract should say plainly whether dogs or cats are allowed on the premises.

If you accept dogs, list any special conditions, such as a limit on their size or their number.

Other Building Rules

Other building rules, such as limits on the type of company, the working set-up, parking and the use of shared areas, belong in the contract or in an attached set of rules.

This template has a box for saying whether separate Rules and Regulations apply, so ask for a copy of those rules before you tick it.

Office Space Lease Agreement Form Details

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
Template Preview
Download your fillable Office Space Lease Agreement template in PDF.

How to Fill Out the Office Space Lease Agreement

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.

  1. 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.

    Office Space Lease Agreement: GROSS LEASE, filled with sample entries
    Step 1: sample entries, not a real document.
  2. 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.

    Office Space Lease Agreement: I. DEMISE OF PREMISES, filled with sample entries
    Step 2: sample entries, not a real document.
  3. 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.

    Office Space Lease Agreement: INIT___, filled with sample entries
    Step 3: sample entries, not a real document.
  4. 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.

    Office Space Lease Agreement: IIIA. SECURITY DEPOSIT, filled with sample entries
    Step 4: sample entries, not a real document.
  5. 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.

    Office Space Lease Agreement: INIT___, filled with sample entries
    Step 5: sample entries, not a real document.
  6. 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.

    Office Space Lease Agreement: X. ASSIGNMENT AND SUBLETTING, filled with sample entries
    Step 6: sample entries, not a real document.
  7. 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.

    Office Space Lease Agreement: INIT___, filled with sample entries
    Step 7: sample entries, not a real document.
  8. 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.

    Office Space Lease Agreement: XVII. SIGNS, filled with sample entries
    Step 8: sample entries, not a real document.
  9. 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.

    Office Space Lease Agreement: INIT___, filled with sample entries
    Step 9: sample entries, not a real document.
  10. 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.

    Office Space Lease Agreement: INIT___, filled with sample entries
    Step 10: sample entries, not a real document.
  11. Addresses for the Lessor and Lessee. Enter the name, address and phone number where the Lessor and the Lessee can each be reached.

    Office Space Lease Agreement: LESSEE, filled with sample entries
    Step 11: sample entries, not a real document.
  12. 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.

    Office Space Lease Agreement: With a copy to, filled with sample entries
    Step 12: sample entries, not a real document.
  13. 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.

    Office Space Lease Agreement: INIT___, filled with sample entries
    Step 13: sample entries, not a real document.
  14. 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.

    Office Space Lease Agreement: XXXI. RULES & REGULATIONS, filled with sample entries
    Step 14: sample entries, not a real document.
  15. 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.

    Office Space Lease Agreement: XXXIII. HOLDOVER, filled with sample entries
    Step 15: sample entries, not a real document.

How to Sign and Use the Office Space Lease Agreement

Sign the office space lease agreement only after you have planned your space, inspected the premises, agreed the terms with the landlord and read the completed form.

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.

  1. Set up a plan.

    Assess your business needs before you contact an agent or tour any space, by answering these questions:

    • What parts of the business need the most space (such as a packing area, meeting rooms, storage or employee cubicles)?
    • How many employees do you expect to hire in the long run?
    • Which city or area can help grow your market?
  2. Look for a rental office space.

    Online platforms speed up the search by publishing each property's rent, terms and other listing information.

    When you find a match, visit the premises to look for structural damage and red flags such as noisy tenants or a problematic landlord. Before you sign an office space lease, have a trusted engineer or general contractor inspect the space.

  3. Present a proposal.

    Office spaces often need improvements, so draft the layout you want and raise each change with the landlord along with the other business points. When the owner and the tenant agree on the proposal and its terms, write them into the lease.

  4. Seek guidance.

    Technical or legal advice before you commit can help you avoid problems, even when you are confident negotiating on your own.

  5. Sign the lease.

    When the owner and the tenant are both satisfied with the agreement, you can sign the lease. If you are still comparing forms, see our full set of commercial lease templates.

Does an Office Lease Agreement Have to Be in Writing?

In Colorado, Oregon and South Dakota, a lease for longer than one year is void or not valid unless a signed writing backs it, under Colo. Rev. Stat. § 38-10-108, Or. Rev. Stat. § 41.580 and S.D. Codified Laws § 43-32-5.

A note or memorandum of the deal can meet each of these rules, as the table shows.

State Rule and its condition Citation
Colorado A contract for leasing for longer than one year is void unless it, or a note or memorandum expressing the consideration, is in writing and subscribed by the party by whom the lease is to be made. Colo. Rev. Stat. § 38-10-108
Oregon An agreement for leasing for longer than one year, or one that by its terms is not to be performed within a year from the making, is void unless it, or a note or memorandum expressing the consideration, is in writing and subscribed by the party to be charged or that party's authorized agent. Or. Rev. Stat. § 41.580
South Dakota An agreement for leasing real property for longer than one year is not valid unless it, or a note or memorandum of it, is in writing and signed by the lessor or an agent authorized in writing. S.D. Codified Laws § 43-32-5

Other states are left out, which does not mean they have no such rule, so check your own state's rules before relying on a spoken deal.

Whatever the length of the term, a signed document shows each party's rent, dates and costs when a question comes up later.

California Notice for a Qualified Commercial Tenant

California's notice periods below apply only when a qualified commercial tenant hires commercial real property for a term the parties did not specify, under Cal. Civ. Code § 1946.1(a).

Because these periods cover a term the parties did not specify, do not read them as a right to end a fixed term lease early.

  • Under Cal. Civ. Code § 1946.1(b), the owner gives notice at least 60 days before the proposed termination date when the tenant has been there one year or more.
  • Under Cal. Civ. Code § 1946.1(c), the owner gives notice at least 30 days before that date when the tenant has occupied the property for less than one year.

Cal. Civ. Code § 1946.1 reaches only a qualified commercial tenant and not every office tenant, so read how the section defines that term before relying on these periods.

Frequently Asked Questions

What is a commercial office lease?

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.

Is there a simple office lease agreement?

A simple office lease agreement uses short, plain clauses, and this template stays manageable because many of its choices are boxes you tick and blanks you fill in.

Can an LLC sign an office lease agreement?

An LLC can be the Lessee on this template, with the company's full name in the opening paragraph and its signer completing the By, Title and Name lines in the signature block. Ask whoever signs to confirm they have the company's authority to do so, and ask the landlord whether a personal guarantee is part of the deal.

Does this template work for a medical or dental office?

A medical or dental office can start from this general template, which asks you to state the purpose the Premises will be used for and to list any work the Lessor performs. Add anything specific to a clinic, such as plumbing, equipment or waste handling, in writing before you sign, and have a professional review those additions.

Can I fill out the lease PDF online or get it in Word?

Yes, you can complete the lease online, but the template on this page comes as an Adobe PDF and not as a Word file. You can also fill in and edit the PDF online with the FormsPal PDF editor, then print or save your copy.

How is an office lease different from a residential lease?

An office lease rents workspace to a business, while a residential lease rents a home to a person. Do not assume that a rule written for home tenants also covers your office, so read the scope of any rule you rely on.

What happens when a short term office lease ends?

A fixed short term office lease ends on the date in the contract unless the parties agreed otherwise, and this template has a holdover choice for a tenant who stays on. Tick month-to-month or tenant at sufferance, complete that option, and talk to the landlord about renewal well before the end date.

General information, not legal or tax advice.

Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.