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Three things to consider when taking out an office lease

Posted by on 18 May 2016

Assisted by Ambrose Teo

You may be moving from existing premises or considering entering into an office lease for the first time – what are some of the things that you should be aware of before putting pen to paper?

Offices leases are essentially commercial leases and it’s important that landlords and tenants alike are on top of their respective rights and responsibilities. A previous blog discusses five basic tips when taking out a commercial lease. Keeping those tips in mind, here are some points to consider regarding an office lease:

No retail use is permitted

An office lease is classified as a commercial lease and as such, can’t be used for retail purposes. It is important that both landlords and tenants examine the nature of the business and determine if the proposed use of the office space would actually fall under a retail use before entering into an office lease.

Please refer to one of our recent blogs for key differences between commercial and retail leases.

Cover everything

Make sure the lease accounts for everything within and reliant on the proposed lease such as make good, obligations during the term of the lease, what actions by the Landlord or Tenant will constitute default and how disputes will be dealt with. This will ensure that potential disagreements between landlord and tenant can be easily resolved.

Include a ‘make good’ clause

It’s smart to include a ‘make good’ clause in the lease that outlines the parties’ obligations and liabilities when the lease comes to an end. Make sure you conduct an inspection of the premises with the letting agent during the negotiation process, collect photographic evidence, and agree on the condition of the premises before the lease begins.

If you would like more information on leasing or renting an office please contact:

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