A Lease Agreement For Office Space

In some situations, the lessor will challenge high taxes to increase the value of the property. Make sure your lease entitles you to a tax reduction that your landlord or other tenant can get after repairing their expenses. And beware of clauses that do not clearly describe how the owner calculates your share of the building`s surface. In a case involving a tenant on the ground floor, whose lease did not contain a formula, a Pennsylvania court ruled that the tenant had to pay climbs in the same proportion as his rent to the total rental list.2 A bad deal for the tenant. The ground floor area is often more than double the cost per square meter of office space on the upper floors. Offices per “rentable” square foot often turn out to be much more expensive than tenants would expect, as landlords may contain space that tenants deem unusable. Normally, you can only use 75% to 90% of what you pay for. This difference, the loss factor, depends on three things: the physical configuration of your offices, your landlord`s method of measuring the rentable area, and increasingly your landlord`s mood. But in the event of a merger, you may have no control. In the same way, your landlord can require that any subsidiary to which you transfer your lease has assets as strong as yours.

But subsidiaries are rarely as well equipped as their parent companies. Such a clause seriously hinders your business flexibility, especially if your landlord requires you to remain liable in the first place after the lease assignment and offers little more protection to the landlord. In addition, it is worth focusing on the right to sublet land. The tenant can either sublet some or all of his uninhabited land to another tenant or, if necessary, sublet land to another company. Sublease options are essential in crisis and restructuring phases. If a tenant has included such an option in the contract, he can sublet part of the leased area in order to reduce costs. In addition, the owner may not refuse such exploitation without appropriate justification. There will be some basic laws and conditions that apply to certain businesses and offices.

We will draw our attention to the article “18. Miscellaneous Terms” to address this topic. The blank line in the second dot, “signs,” needs the name of the municipality, whose laws govern all of the tenant`s exterior signs or ads. In addition to mentioning the aforementioned community, we must mention the name of the state whose laws govern this agreement, in the empty line in “22nd Law in Force.” We must provide a legal address to which each party can send messages and payments. In “23. Landlords who want to increase their income without paying a higher rent often use the electricity clause as a profit center and inflate the already considerable costs for this essential service. . .