A Lease Agreement For Office Space
Renovations. An extension option can be valuable. Apart from profitability, it guarantees that you can continue your activity on the same site for more than three, five or ten years. If you accept a fixed rent during the extension period, you and the landlord will play on a future market. This is why leases often contain a formula – usually linked to the fair market price – to determine rent for extended life. Tenants, especially corporate clients, often ask to include a “break option” in the agreement. It guarantees the possibility of an early violation of the agreement. A typical office rental contract in Warsaw and other developed regional markets is signed for a period of five years or more with large companies. With a break option, a tenant can terminate the contract on a pre-agreed date, for example.B. effective on the third anniversary of the start of the rent. Nevertheless, these options are very rare, but they can mostly be found in older buildings, which must compete with newer and more technically advanced objects. For new constructions, the option of a break is even rarer. A commercial lease is a lease agreement used for the lease of a commercial property.
Completing a commercial tenancy form gives the tenant the legal right to use the property to operate any type of business for an agreed rent payment. It`s the same scenario for an office building. The property is the entire office building (or office park), and the denied premises is one of the office suites that is rented. In addition, homeowners often develop their own methods of measuring laudable surface. An owner can measure z.B. from outside wall to exterior and include questionable “public” areas such as air ducts. Some buildings seem to be measured, from garge to garbule, façade ornaments that have nothing to do with a tenant`s utility space. Be careful with these estimates for another reason. They may contain a significant “safety factor” that unnecessarily increases your costs. Suppose your landlord pays $2.25 per square meter for electricity, but adds $2.75 per square meter to your base rent.
A 10% increase in your rate would increase your fees to $3.02, and your landlord`s gain would increase from $50 to $55 per square metre.
