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PLAYBOOK TEMPLATES
Office Lease
An Office Lease establishes tenancy rights and obligations for commercial premises. This playbook analyzes rent structures, maintenance responsibilities, and default remedies.
Rent and Payment Terms
Negotiation strategy
Negotiate for a fixed rent amount with minimal escalation. Ensure payment terms are clear and allow for electronic payments to avoid delays.
Secure a fair rent amount with annual increases tied to a reliable index. Ensure the lease includes provisions for adjusting rent based on increased costs.
Essential elements
1
Rent Amount
Monthly rent payable in advance.
2
Payment Schedule
Due dates and payment methods.
3
Escalation Clause
Annual rent increase mechanism.
Action framework
ACCEPT
Propose edits if the escalation percentage is too high or the index is unreliable.
EDIT
Reject if rent terms are unclear or overly burdensome.
ADD
Add clauses for electronic payment options or additional notice for adjustments.
PRO TIP
Always verify the reliability of the index used for rent escalation to ensure it reflects current economic conditions.
Example clauses
FAVORABLE
Preferred Rent Amount
"The Tenant shall pay to the Landlord a monthly rent of [insert amount] for the premises, payable in advance on the first day of each calendar month during the term of this Lease."
NEUTRAL
Standard Payment Schedule
"Rent payments shall be made on or before the first day of each month. If the first day of the month falls on a weekend or public holiday, payment shall be made on the next business day."
UNFAVORABLE
Unclear Escalation Terms
"The rent may be increased at the Landlord's discretion without prior notice."
Fallbacks
High-Inflation Environment
In a high-inflation environment, consider negotiating a cap on annual rent increases to protect against excessive escalation.
Short-Term Lease
For short-term leases, focus on securing a fixed rent amount without escalation to maintain budget predictability.
Commercial Properties
In commercial leases, ensure rent adjustments account for changes in market conditions and property-related expenses.
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