Office Space Lease Checklist

Office Space
What is the rentable square footage in the Office Space ?
What is the usable square footage in the Office Space ?
Is rent based on usable or rentable square footage in the Office Space ?
Verify square footage number provided by the Office Space landlord.

Permitted Office Space Uses of the Premises
What uses of the premises are permitted in the Office Space ?
Is the permitted use clause for the Office Space broad enough for possible changes in the business?
Is the permitted use clause for the Office Space broad enough for potential assignments or subleases?
Can the use clause for the Office Space be drafted to include “any lawful purposes”?
Can uses be changed with Office Space landlord’s consent, which consent can’t be unreasonably withheld or delayed?

Primary Office Space lease term TOP
What is the commencement date of the lease for the Office Space?
What happens if the Office Space is not ready on the commencement date?
Is there rent abatement, monetary damages, right to cancel the lease, or other remedies specified for the Office Space?
What is the termination date for the Office Space lease?
Does the Office Space landlord have the right to terminate early without cause?
Does the Office Space tenant have the right to terminate early by payment of a fee?

Rental of Office Space
What is the base rent for the primary term for the Office Space?
Are there escalation clauses for the Office Space?
Are there cost of living increases for the Office Space?
Is there a cap on any rent increases regarding the Office Space?
Is there a reasonable grace period and written notice before a late charge is imposed regarding the Office Space?

Common area maintenance in the Office Space, HVAC and Operating costs
What does the Office Space tenant have to contribute for common area maintenance, ventilating, heating, air conditioning, and other building operation costs?
Is there a cap?
Can the amount for the Office Space be increased each year?
Real estate taxes on the Office Space and other impositions:
Does the Office Space tenant have to pay a portion of the real estate taxes?
What increases for the Office Space over base year are allowed?
Is there a cap on tax increases for the Office Space?
Does the Office Space tenant have to pay increased taxes that may occur on sale of the building?
Are there any special provisions or exceptions on the payment of these expenses for the Office Space?
When is payment due on the Office Space?
What detailed reports does the office space landlord have to provide the Office Space tenant showing the actual expenses?
What audit rights does the Office Space tenant have to review the Office Space landlord’s books and records?
Are there provisions made for weekend and holiday service? What are the charges? Does the Office Space tenant have a remedy for service interruption?
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Tenant Improvements in Office Space
What tenant improvements will be necessary before occupying the Office Space?
What is the cost of the improvements to the Office Space?
How much time will it take to complete the tenant improvements in the Office Space?
Will the landlord contribute to the cost for the tenant improvements in the Office Space?
What approvals will be necessary?
What permits will be necessary?
Does the landlord or the tenant own any of the Office Space improvements?

Repairs and replacements in the Office Space
What responsibility does the tenant have for repairs or replacements in the Office Space?
What responsibility does the landlord have for repairs or replacements in the Office Space?
At the end of the tenancy, is tenant’s obligation to return the Office Space in same condition at the beginning of tenancy, excluding (1) ordinary wear and tear, (2) damage by fire and other unavoidable casualty, and (3) alterations previously approved by landlord in the Office Space?

Utilities in the Office Space
Direct supply or individually metered in Office Space?
Method of computing payment?

Assignment and subletting of the Office Space
Is the landlord’s written approval required before subletting the Office Space?
What standard is there for approval? absolute discretion? reasonable approval?
Does the landlord have the right to cancel the Office Space lease if notified of a proposed assignment of sublease?
If the assignment or sublet of the Office Space is at a higher price than the base rent, who keeps the excess? or what split is there?
Can the Office Space lease be assigned to affiliates of the tenant without landlord approval?
Can the landlord terminate the Office Space lease if the stock ownership of the tenant changes?
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Subordination and attornment
All present or future mortgages on the Office Space?
Execution of estoppel certificates required for the Office Space?
Tenant agrees to attorn to landlord’s successor in interest of the Office Space?

Destruction of the Office Space
Is there a right of cancellation for the Office Space tenant in the event of destruction?
What obligation does the landlord have to rebuild the Office Space?
Does the tenant share in any proceeds from insurance for the Office Space?

Indemnity and Disclaimer
Indemnity mutual or Office Space tenant only?
Waiver of claims mutual orOffice Space tenant only?
Waiver of subrogation?
Landlord liability limited to interest in Office Space property?

Default
Does the Office Space tenant have a cure period after notice of a breach?
What remedies are available for breach regarding the Office Space?

Landlord’s warranties on the Office Space
Quiet enjoyment of premises by the Office Space tenant?
First class services in the Office Space?
Security of Office Space in building?
Ownership of building where Office Space resides?
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Option to renew for the Office Space
Does the tenant have the option to renew the lease for the Office Space?
How long is the renewal option for the Office Space?
How far in advance must the option be exercised for the Office Space?
How is rent determined for the renewal period for the Office Space?

Right of first refusal or first offer for additional Office Space
What is the scope of any right of first offer or first refusal for additional Office Space?
How is rent determined on any additional Office Space?
How long does the tenant have before exercising the right for additional Office Space?

Security deposit on the Office Space.
What is the amount?
Can it be a letter of credit for security on Office Space?
Is there interest on the security deposit placed for the Office Space?
Does the lease for the Office Space provide for the return of the tenant’s security deposit within a set number of days after termination of the lease?

Guaranty
Is a personal guarantee required for the Office Space?
When does the guarantee for the Office Space terminate?

Form: Checklist for Office Space Leases
Purpose: This is a short checklist of Office Space lease issues to consider when negotiating an Office Space lease.
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Mortgages on Office Space
Can any mortgages adversely affect the Office Space tenant’s rights if foreclosed upon?

Free rent for Office Space
Will the landlord grant a free rent period for the Office Space?
When does it have to be returned (e.g., on breach of lease) for the Office Space?

Are there any peculiar landlord obligations that should be included regarding the Office Space?

Is the Office Space in Compliance With Law
Does landlord warrant that the premises and the Office Space are in compliance with applicable law?
If tenant is obligated to comply with applicable law, does it exclude matters concerning the Office Space that should more properly be the responsibility of the landlord (e.g., asbestos problems, disability access)?
Is landlord obligated to comply with all laws applicable to its control of the building and all Office Space?

Insurance on the Office Space
What insurance on the Office Space is the tenant required to maintain?
What insurance on the Office Space is the landlord required to maintain?
Has the tenant’s insurance agent reviewed the insurance requirements for the Office Space in the lease?

Rules and Regulations for the Building and the Office Space
Are there specific rules and regulations in existence concerning the Office Space?
Can the rules concerning the Office Space be changed without approval of tenant?
Is the landlord required to enforce the rules and regulations concerning the Office Space against other tenants?
Are there any rules that interfere with the expected operations of the tenant in the Office Space?

Office Space Rights of Entry
Exclusive of emergencies, what notice must the landlord give in advance for entry into the tenant’s premises or Office Space?
Are there any restrictions on landlord interfering with tenant’s business in showing the Office Space to buyers, lenders or prospective tenants?

Signage concerning the Office Space
What signage is the Office Space tenant allowed to put in or about the building and premises?

Parking for the Office Space
How many parking spaces will be available to the Office Space tenant?
At what cost?
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