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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
Negotiation strategy
Negotiate for flexible renewal options that allow for shorter terms if needed. Ensure that any market condition adjustments are based on reliable data.
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.
Example clauses
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."
Fallbacks
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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