Rent Office Space Key Terms

Master the lingo of office rentals

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.

 

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.
Try: 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.
Try: 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?
Try: 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.
Try: 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.

 

• 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.

Copyright © 2011 Business.com, Inc. All Rights Reserved.

---