Finding the right office for rent is exciting. You're giving your business more than an address, you're giving it a presence, a face to show the world. While you might be focused on the end of the journey, that perfect office space set up and ready to go, getting the right office space for lease starts in much drier territory: negotiating the contract.

What makes this potentially intimidating is the legalese you will encounter. Any office for lease is bound by terms and conditions, some of which are typical to most leases, and some of which might be unique to the particular office space for rent you are interested in. If you rent office space, key terms are important to understand:

1. Understand the use clause and exclusive clause in your office lease.

2. Know what is included in your premises.

3. Get all the security you need for your office space rental.

Action Steps
The best contacts and resources to help you get it done

Control how you use your office space rental

The use clause imposes a landlord's restrictions on how you use your space, so go over all restrictions in the use clause and make sure they will not interfere with your ability to do business. Most common in retail leases, the exclusive clause reduces your competition by prohibiting other similar businesses to rent space nearby your own. Make sure you are not prohibited from conducting any part of your own business by your neighbors' exclusive clauses.

I recommend: U.S. Legal Forms has many links to a wide variety of use and exclusive clauses in office space for lease. Retail Traffic Magazine's "Franchise Finesse" article gives tips on how even a small, unproven business can win a favorable exclusive clause.

Establish the full parameters of your office space rental premises

The premises clause identifies every area included in your office lease. Don't assume that areas such as parking spaces, storage areas, the kitchen, and even bathrooms are included in your office rentals. Make a list of the key areas you will need and if you don't see them in the lease, negotiate for them.

I recommend: Austin Office Space has a glossary of terms, including space calculation terms, that come up when determining the parameters of office space for rent. Negotiate the Best Lease for Your Business, from NOLO, has a section devoted to negotiating the premises clause starting on Section 7, page 6.

Provide for security in your office space lease

It's natural to assume that if you rent office space in a building, the building owner provides security for your space. But you may have security obligations of your own: if you are the last person out of the building, do you lock up, or does a security guard do so? Can your landlord enter your premises when you are not there, and can you access your office before or after business hours?

I recommend: Itkowitz & Harwood offers basics on the Security clause, including the security deposit. At docstoc you can find downloadable legal forms that address the security clause, including security deposits.

Review other office space lease key terms

There are three types of space classes: Class A for high-end, image-conscious spaces with luxury amenities, class B for standard buildings, and class C for older or more conservatively-built office buildings. Use online glossaries for other common terminology.

I recommend: Commercial Space Online lists an impressive glossary of commercial real estate terminology. Find key terms at Tucson Tenant Representation, such as pass throughs (when operating expenses go up, and are added to rent amount), circulation (hallways and other areas that tenants use to move about between work spaces and offices) and more.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that smoking constitutes a use of offices for rent. If you don't allow smoking on your premises, make sure that's part of the use clause and the premises clause. If your building allows smoking, make sure you are legally able to ban it in your own leased office space.

A tenant rents office space only a few times in their corporate life, while landlords rent space over and over again. Keep an eye on these 9 issues that are frequently overlooked and you are more likely to end up with a happy ending.

The author, James Osgood, is the founder and President of OfficeFinder and has been in the office leasing business since 1979.

Action Steps
The best contacts and resources to help you get it done

Carefully Review Your Operating Issues

Think about the mechanics of how your business operates as you are reading through the lease. Watch out for issues like (a) after hours HVAC service — is it available and how much will it cost?; (b) do you make higher than normal levels of noise at particular times?; and, (c) your employees/Tenants love to cook popcorn in the micro-wave in the afternoon and that is strictly forbidden by the lease.

I recommend: http://www.officefinder.com/checklist.html

Don’t Neglect the Workletter

There are 3 main components to a lease agreement. The business points, the legal points and the workletter. The final negotiation item is the Workletter. In many cases, the landlord will give the tenant an improvement allowance in a dollar amount, which typically forces the tenant to deal with a Workletter. Not only does it state what each party is to pay, but also what happens if the cost of the improvements exceed the allowed amount provided by the landlord.The (TI) allowance can be applied to either useable square feet of the premise or rentable square feet. The rentable square feet is always larger, usually 10% to 15% more, unless it is a single tenant building, so the dollar amount would be more. Make sure you understand to which measurement the allowance is being applied.

I recommend: http://www.crslease.com/industry/workletter.htm

The Sublease Space Option

You’ve heard that you can get a really good deal on sublease space. It is true, but as with almost every benefit, there are increased risks.Financial condition of the sublessor should be investigated thoroughly. If they don’t pay the rent, you suffer.If the sublessor files bankruptcy, your sublease is at risk.You are stuck with whatever terms and conditions negotiated by the sublessor with the landlord.There is usually no tenant improvement allowance to make changes. You will have to live with what you get or dig into your own pocket.What can you do to protect yourself?Ask for some form of security from the sublessor. A letter of credit, for example, that will provide funds for increased rents or moving costs if the tenant goes out of business. Once you've negotiated a sublease deal, take it to the landlord and try to convert it to a direct lease. In any cse make sure the Landlord signs the sublease.

I recommend: http://www.officetimes.com/taosos.html, http://www.bizjournals.com/dallas/stories/2002/10/07/focus2.html

Don’t let your enthusiasm to make a deal make you a bad negotiator.

It is easy to get wrapped up in a negotiation and try to do anything to make the deal. If a negotiation fails to yield what you want, don’t look at it as failure, but as part of the process of getting what you want. Move on to the next best alternative. Here si a link to info on the office leasing process.

I recommend: http://www.officefinder.com/leasing_process.html

Separate the Business points from the Legal Points

Clearly understand and have agreement on the business points of the transaction before delving into the legal points. It will keep the negotiations clean and clearly differentiate the stages of negotiations.

I recommend: http://www.americanexec.com/top10

Cost-pass-throughs cautions

If you are moving into a new or partially occupied building add some protection to the Cost-pass-through provision that will require the landlord to calculate your annual cost-pass-through based upon a 90% or 95% occupied building. This will protect you from moving into a building that takes a long time to lease up. The operating costs for a partially occupied building are significantly less that for a full one.Whether your lease calls for an operating expense cost-pass-through or expense stop, make sure you know your starting point. Be aware of what calculation method is normal in your market. Depending on the market, your cost pass through base year should be either the current year or first year of the lease. It can be either calendar or fiscal. If your lease calls for an expense stop in which you pay for any expenses above a certain amount, get the historical information to allow you to make sure your expense stop is current so you don’t get stuck with unexpected costs.

I recommend: http://www.officefinder.com/gloss2.html#P

The Most Forgotten Part of the Lease: Rules and Regulations

The smart tenant, the good broker, and the efficient attorney will always read the entire Lease. Not because it’s fun reading, but rather to understand the potential ramifications that could be set in motion should some unfavorable clause actually come into play. While everyone always reads the summary page and most read the next ten to fifteen sections, only a few get through the dry sections – sixteen to infinity. Very few really read the Rules and Regulations. After all, it’s mostly non-issues like “Tenant may not have sales” or “Tenant can't have pets.” Be careful, some of these hidden issues may actually impact you as a tenant. Read the Rules and Regulations as carefully as you do the rest of the Lease.Can you cook in your suite? Most say you can't. Seems microwaves weren't invented when most leases were first drafted. What are the building hours? If it says 8 AM to 6 PM, what happens if you want to come in early or stay late?

I recommend: http://www.allbusiness.com/legal/contracts-agreements-real-estate/603-1.html

Tenant Improvement allowance is often applied to square feet

The (TI) allowance can be applied to either useable square feet of the premise or rentable square feet. The rentable square feet is always larger, usually 10% to 15% more, unless it is a single tenant building, so the dollar amount would be more. Make sure you understand to which measurement the allowance is being applied. The attached link shows the generally accepted method for measuring office space.

I recommend: http://www.officefinder.com/boma.html

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Get Professional Help...Finally, as mentioned in the beginning, as a tenant you rent office space only a few times in your corporate life, compared to landlords who rent space over and over again. Our final tip is to level the playing field by taking advantage of the availability of a good tenant representative on both relocations, renewals or subleases. They represent you and their services to you are almost always paid by the landlord. Doing so will save you both money and frustration over the long run, not to mention help you avoid making costly mistakes.

The traditional way to rent office space is well-known: you find an office for rent in an office building and take out a lease. But there are other ways to give your business an address.

When you're looking at office rentals, you need to think about the size of your business, how long you'll need the space, and what you're using the space for. This might seem like a no-brainer, but your answers may lead you to different types of office space for rent than you were expecting. When you are ready to rent office space, news and trends can give you some fresh thoughts. Here are three new ideas in conference and office space rental:

1. Sharing an office lease

2. Using self-storage office space

3. Leasing temporary mobile office space

Action Steps
The best contacts and resources to help you get it done

Pool resources and share costs in a shared office for lease

Shared office space is a good idea for small businesses that need to focus on building business, not setting up an office. Sharing office space with other complementary businesses can increase your networking and add heft to your small business. Short leases--sometimes just a few months long--are also more available to tenants of shared office space.

I recommend: At Independent Street, from the Wall Street Journal Online, you'll find "My Office is Your Office," an article on sharing office space that's followed by in-depth analysis and personal stories from business owners with shared-space experience. For one example of a shared office space option, complete with photos of the space, head to "Get a Cube and More at Sunshine Suites," from CenterNetworks.

Clear clutter when you rent office space for your stuff

For home-based entrepreneurs and small businesses that can't afford to rent a large office space, self-storage is a godsend. If you're less concerned with space for employees than space for goods, self-storage is affordable, no-maintenance, and grows easily to meet your needs. Why pay big bucks for extra square feet in conventional offices for rent just to store your archived paperwork?

I recommend: For a description of the new wave of high-end self-storage office space, see "Self-Storage Goes High-Tech," from the New York Times. Extra Space Storage has information on self-storage for business, from a Business Account Worksheet to different self-storage needs and strategies for specific industries.

Go with a mobile office space lease

Office trailers, or mobile offices, are not just for construction sites. They're also a quick fix if you have workers displaced by office renovation or a temporary influx of workers. If you need a training classroom, small conference room, or a private place to conduct physicals, an office trailer can be the right solution.

I recommend: 360 Mobile Office has a complete series outlining the steps and benefits of renting a mobile office, At Directory M, you'll find an intro to choosing and renting an office trailer.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember to make sure your self-storage or mobile office space rental is wheelchair-accessible.