Office Lease

---
name: office-lease
description: Drafts commercial office lease agreements with rent schedules, expense allocations, maintenance splits, and protective provisions for landlord and tenant. Covers NNN, gross, and modified gross structures. Use when drafting office leases, commercial lease agreements, landlord-tenant contracts, or space rental agreements for commercial office premises.
---

# Office Lease Agreement

Drafts an execution-ready commercial office lease balancing landlord and tenant interests across NNN, full-service gross, and modified gross structures.

## Prerequisites

Gather before drafting:

1. **Parties** — legal names, entity types, addresses for landlord and tenant
2. **Premises** — building address, suite number, rentable SF, legal description
3. **Term** — commencement date, expiration date, renewal options
4. **Rent structure** — lease type (NNN / gross / modified gross), base rent with escalations
5. **Operating expenses** — pro-rata share method, inclusions/exclusions, caps/stops, CAM
6. **Security deposit** — amount, interest-bearing status
7. **TI scope** — work letter, construction allowance, delivery conditions
8. **Insurance** — CGL limits, property coverage requirements
9. **Guaranty** — personal or entity guaranty if applicable

## Article Framework

| Art. | Subject | Key Contents |
|------|---------|-------------|
| 1 | Preamble & Definitions | Parties, effective date, recitals, defined terms |
| 2 | Premises & Term | Space description, common area rights, commencement/expiration, delivery conditions, rent abatement during buildout |
| 3 | Base Rent | Rent schedule table (year/monthly/annual), escalation methodology, payment terms |
| 4 | Additional Rent & Expenses | Pro-rata share, operating expense pass-throughs, tax escalations, CAM, audit rights |
| 5 | Security Deposit | Amount, holding requirements, return conditions |
| 6 | Permitted Use | Use grant, compliance, prohibited uses, exclusive-use carve-outs |
| 7 | Maintenance & Repairs | Landlord vs. tenant responsibility split |
| 8 | Alterations & Improvements | Approval process, code compliance, ownership at termination, restoration |
| 9 | Services | HVAC (business hours), janitorial, electric, water/sewer, elevator, after-hours charges |
| 10 | Insurance & Indemnity | Tenant CGL/property/workers' comp, mutual waiver of subrogation, indemnification |
| 11 | Assignment & Subletting | Consent standard, recapture right, profit sharing, affiliate/merger carve-outs |
| 12 | Default & Remedies | Defaults, cure periods, remedies, self-help provisions |
| 13 | Subordination & Estoppel | SNDA, estoppel certificates |
| 14 | Casualty & Condemnation | Rent abatement, restoration, termination triggers |
| 15 | Environmental | Hazmat prohibition (office supplies excepted), tenant indemnity |
| 16 | Force Majeure | Performance excuse for events beyond reasonable control |
| 17 | General Provisions | Notices, governing law, entire agreement, severability, quiet enjoyment, holdover |
| 18 | Execution | Signature blocks, authority representations, notary blocks if recordable |

## Rent Schedule Format

| Lease Year | Period | Monthly Base Rent | Annual Base Rent |
|------------|--------|-------------------|------------------|
| 1 | [Start] – [End] | $X,XXX.XX | $XX,XXX.XX |
| 2 | [Start] – [End] | $X,XXX.XX | $XX,XXX.XX |

## Maintenance Responsibility Split

| Item | Landlord | Tenant |
|------|----------|--------|
| Structure, roof, foundation, exterior walls | X | |
| Common areas | X | |
| HVAC systems | Specify | Specify |
| Interior walls, floor coverings, fixtures | | X |
| Plumbing/electrical within premises | | X |
| Plate glass, windows, doors | | X |

## Required Exhibits

- [ ] Exhibit A — Site plan / floor plan
- [ ] Exhibit B — Building rules and regulations
- [ ] Exhibit C — Work letter / TI agreement (if applicable)
- [ ] Exhibit D — Guaranty of lease (if applicable)
- [ ] Exhibit E — Commencement date confirmation letter

## Drafting Rules

- **Lease type drives expenses**: NNN passes through all operating expenses, taxes, and insurance; gross bundles into rent; modified gross splits specific categories. Confirm type before drafting expense provisions.
- **Insurance defaults**: $1M per occurrence / $2M aggregate CGL; landlord as additional insured. Adjust for premises size and use.
- **No self-negligence indemnity**: Do not require a party to indemnify against its own negligence — unenforceable in many U.S. jurisdictions.
- **Assignment consent**: "Not to be unreasonably withheld, conditioned, or delayed" is market standard.
- **Cure periods**: Non-monetary defaults: 30 days with extension for diligent cure. Monetary defaults: 5–10 days after written notice.
- **Jurisdiction flags**: Mark unlawful detainer procedures, self-help remedies, recording/notary requirements with `[CONFIRM JURISDICTION]`.
- **Defined terms**: Capitalize consistently; collect in Article 1 or define inline at first use.
- **Balanced drafting**: Neutral tone protecting both parties unless instructed otherwise.
- **Table of contents**: Include if lease exceeds 10 pages.