An Office Lease establishes tenancy rights and obligations for commercial premises. This playbook analyzes rent structures, maintenance responsibilities, and default remedies.
Why This Matters: Unclear scope can lead to unauthorized uses, disputes over access, and unexpected liabilities or costs for either party.
Negotiation strategy
If you're the Landlord:
Ensure the clause clearly defines the property boundaries and permitted uses. Attach all referenced exhibits and confirm their accuracy.
If you're the Tenant:
Negotiate for flexibility in permitted uses and ensure any restrictions are reasonable. Verify that the boundaries are accurately described.
Essential elements
1
Premises Description
Defines property boundaries.
2
Permitted Uses
Specifies allowed property uses.
3
Boundary Clarification
Details property line disputes.
Action framework
ACCEPT
Propose edits if the boundaries or uses are unclear or overly restrictive.
EDIT
Reject if the clause imposes unreasonable restrictions or lacks necessary details.
ADD
Add language to clarify boundaries or expand permitted uses.
PRO TIP
Always attach a detailed map or exhibit to avoid future disputes over property boundaries.
Example clauses
FAVORABLE
Clear Premises Description
"The Premises shall be defined as the entirety of the property located at [insert address], including all buildings, structures, and land within the boundaries as outlined in Exhibit A attached hereto."
NEUTRAL
Basic Use Clause
"The Tenant shall use the Premises for office purposes only."
UNFAVORABLE
Ambiguous Use Restrictions
"The Tenant may use the Premises as agreed upon."
Fallbacks
Multi-Use Properties
For properties intended for multiple uses, specify each use and any conditions or restrictions. Ensure compliance with zoning laws.
High-Risk Projects
For projects with significant alterations, ensure detailed descriptions of permitted improvements and required approvals.
Shared Spaces
In shared spaces, clearly define common areas and exclusive use areas to prevent conflicts.
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