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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.

Term and Renewal

Why This Matters: Unfavorable term lengths or renewal mechanisms can lock parties into disadvantageous positions or trigger costly holdover periods.

Negotiation strategy

If you're the Landlord:

Negotiate for flexible renewal options that allow for shorter terms if needed. Ensure that any market condition adjustments are based on reliable data.

If you're the Tenant:

Secure longer initial terms to ensure stable occupancy. Include conditions that protect against market volatility during renewals.

Essential elements

1

Lease Term

Duration of the lease agreement.
2

Renewal Option

Conditions and terms for lease renewal.
3

Market Conditions Adjustment

Renegotiation based on market data.

Action framework

ACCEPT

Propose edits when market conditions change significantly, requiring adjustment in terms.

EDIT

Reject clauses that do not allow for renegotiation based on market conditions.

ADD

Add clauses that provide flexibility in renewal terms and conditions.

PRO TIP

Always ensure that renewal terms are aligned with current market conditions to avoid financial strain.

Real-world examples

FAVORABLE

Balanced Renewal Terms

"Tenant shall have the option to renew this Lease for two additional terms of five years each, with rent adjustments based on market conditions."
NEUTRAL

Standard Renewal Clause

"The Lease may be renewed for one additional term of three years under the same conditions."
UNFAVORABLE

Rigid Renewal Terms

"The Lease shall automatically renew for a ten-year term without any rent adjustment."

Alternative scenarios & positions

High-Risk Projects

In high-risk projects, ensure renewal terms allow for exit strategies if the project does not meet expectations.

Rapid Market Changes

In rapidly changing markets, include clauses that allow for frequent renegotiation to reflect current conditions.

Long-Term Stability

For long-term stability, prioritize longer initial terms with fixed renewal options to secure occupancy.

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