Office Space Lease Agreement: Fill & Download for Free

Sometimes, the leaseholder does not mind, because the cost per square foot of office space in the area has gone up, there is demand for office space, and the leaseholder can make more money on a new lease from a new client.Sometimes the startup subleases its space to a different startup, which requires approval from the leaseholder, and possibly from investors depending on how ownership is structured.Sometimes these issues are addressed as part of bankruptcy.The interpersonal and business relationship issues, such as hard feelings, hesitancy, who the landlord goes after, vary from case to case and depend not only on the lease agreement, but also on personalities and on how the ownership of the startup was structured.If you find yourself in this situation, consider seeking legal advice.

I remember when we were looking for our first office. Our initial funding was imminent, so our plan was to sign a lease pending the close of funding.Randy, my cofounder and operations VP, went and viewed a lot of prospective offices in the Fremont and Milpitas area. I originally wanted to be in Sunnyvale, but Milpitas was kind of the halfway point between Randy’s house and my house.Looking for office space was identical to looking for a home.We had a commercial real estate agent help us with our search. Chris took us from office complex.Some of the places we visited were downright depressing. The lighting was dim with minimal outside light. And the ceilings were really, really low!Just rows of cubicles packed tightly together.Ugh.We would be okay at one of these places, but it would be depressing.So we kept looking.After weeks of looking, we happened upon a large office complex in Milpitas. There was a large welcoming greenbelt where our team could go for a walk.That was a good sign.Inside the offices were warm (or at least as warm as an office could be) and inviting. I could see spending the next few years at this site before we outgrew it.There was plenty of outside light too because there were lots of windows. The only problem was that the space was too big.The good news was office space was maybe fifty percent full in the area we were looking for. Maybe just maybe the landlord would subdivide the space for us.You need to budget for your office space.Salaries are likely going to be biggest expense when you’re starting out. Office space is dictated by the environment you are in.If you’re in a high demand area, then you’ll obviously have to budget more. Just make sure that you have enough cash to make it at least 18 to 24 months.We pitched the landlord on subdividing the space and the landlord agreed! Better yet, the lease agreement was well within our budget.We had found our home.For more, read: How Do You Know It's Time To Hire Your First Employee? - Brett J. Fox

When you make the choice to rent office space, you are definitely making an investment in your business that can have impacts for a considerable period of time. You want to be sure that you are putting your best foot forward when you select your space, and it’s really great that you are taking the time to ask such an important question. Here are some top considerations:Think about the reality of using the space. Sometimes, people assume they don’t REALLY need that many square feet, or they don’t REALLY need a window. However, after a while, these things can start to matter and even impact your productivity. Whether it’s space, light, sound, or location really think about how that space will feel long-term.You may think that fellow tenants won’t matter, but they always do. If you are a massage therapist, you probably don’t want to share an office building with someone who teaches music lessons. Know the kind of businesses that surround yours, so you can be sure that it will be compatible.Shop around. Even if you’ve found a space you really love, check out some others as well. Try to touch on different points of your budget so you can be sure to get a good sampling. Ask for lease terms up front so that you can compare between your top choices. Small differences can have a huge impact on cost and convenience.Don’t commit to renting a space without making sure that you have read and understood the contract from start to finish. This can be a bit complicate, and you will definitely want to seek out some professional help (a lawyer) to make sure you are making the best decision for your future.LawTrades is an excellent resource for individuals who are interested in leasing commercial space. Whether you want help creating a checklist or want a set of professional eyes to go over the lease agreement—we can help. The attorneys on our legal marketplace are well-versed in real estate, and we have assisted from all types of businesses sign terrific agreements for their space. Hope this helps and good luck!