Commercial office space leases are often long-term and are strict about terminating the lease before it expires. Many business owners who are eager to rent office space feel they have no choice but to accept the terms as is and know that they must agree to a long lease if they want to win office space. This is not always the case. Although landlords may be the ones to structure the lease, the terms of the lease are not absolute. There is always the option to negotiate these terms and make them more flexible for the benefit of the tenant. Here are some tips for getting a flexible office space lease.
Request a shorter lease term
Just because the initial terms are on paper doesn’t mean you can’t ask for a shorter lease term. Many landlords will opt for longer lease terms as it ensures they will have a tenant in the place for years to come and provides security. However, there are times when the landlord may agree to a shorter lease term. You may have to pay a little more for an office space lease that is shorter than a 5-15 year range, however if you need flexibility regarding the length of your lease, it may be worth paying a little more. to get such flexibility.
Request a Renewal Clause
Let’s say you feel you want to stay in your office space for many years, and you don’t want to risk getting kicked out when the lease term expires. The easiest way to gain security in this regard is to request that a renewal clause be added to the lease. This will give you a documented right to renew your lease if you wish to do so in the future. It’s always good to have this type of safeguard in place and absolutely have it in writing.
Assignment and subletting options
There may come a time during your commercial lease when you need to vacate the lease prior to the expiration of your current lease. Having assign and sublet options in the contract will ensure that you will be allowed to assign or sublet the remainder of your lease term without penalty.
Inclusion of a Termination Clause
As with the previous section, if you need to move your business out of the leased office space before the end of the lease term, you want to be able to do so without being penalized. Sometimes business owners do not want to be responsible for sublets or assignments and this is where a termination clause will come in handy. Ask to have this lease term added to the contract as well, and it will give you a flexible option as a tenant of commercial office space.
Leases for office space do not have to be strictly structured or solely benefit the landlord. Request that terms be included in the lease that will protect you as a tenant in the future.
