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Office Tenant Guide

Office Lease
Negotiation Guide

Office leases are about more than just square footage. They are about operational flexibility and the cost of build-out.

1. Tenant Improvement (TI) Allowances

The TI allowance is the amount the landlord provides to build out or renovate the office space. Ensure the lease specifies what the allowance can be used for (e.g., architectural fees, cabling, furniture) and when it will be paid.

"Negotiate for any unused TI allowance to be applied as a credit toward your future rent."

2. Expansion & Contraction Options

If your business grows, you'll need more space. A "Right of First Refusal" (ROFR) or "Right of First Offer" (ROFO) gives you the first chance to lease adjacent space if it becomes available. Conversely, a "Termination Option" or "Contraction Option" allows you to give back space if your team shrinks.

3. Submetering & Utilities

In many office buildings, utilities are shared. This can be unfair if you are a 9-5 business and your neighbor is a 24/7 data center. Push for "submetering" so you only pay for the electricity and water you actually use.

4. Parking Rights

Ensure the lease guarantees a specific number of parking spaces (typically expressed as a ratio, e.g., 4 spaces per 1,000 SF). Specify if these spaces are reserved, unreserved, or in a specific garage.

5. After-Hours HVAC

Most office buildings turn off the HVAC on weekends and after 6 PM. If your team works late, you could be charged $50-$100 per hour for "after-hours HVAC." Negotiate these rates upfront in the lease.

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