LEASE AGREEMENT REFERENCE GUIDE 1670: OFFICE AND INDUSTRIAL LEASE FORM CHECKLIST $49.95
OFFICE AND INDUSTRIAL LEASE FORM CHECKLIST
1. Are parties signing for Landlord and Tenant empowered to do so, i.e., are corporate officers signing for corporation; are one or more general partners signing for a general or limited partnership?
2. Are defined terms, including those set out in the recitals, used consistently throughout the Lease?
1. Use of common description - (i.e., Raccoon Office Park, Suite 1275) must identify the premises with certainty; a plot plan showing the premises is often attached to the Lease as an exhibit.
2. Legal description - generally not required, but description of premises must be definite (see above); preferable to identify the premises with crosshatching rather than colors, since crosshatching will show when xeroxed.
3. Leasing plans and plot plans - often attached as exhibit with premises outlined; Landlord generally should avoid as much detail as possible since a detailed plan can constitute a representation that major tenants, common areas, parking configuration, and major ingress and egress will continue as shown on the plan; Landlord should consider use of disclaimers on such plot plans indicating that the items shown (other than the premises) are all subject to change and further modification as determined by the Landlord; Tenant often wants as much detail as possible, including access through common areas and streets, parking lots, parking garages, etc.
4. Description of improvements:
(a) Freestanding building or multi-tenant space?
(b) Building to be constructed - Define location and refer to construction plans to describe premises.
5. Common areas and appurtenances - Does the Lease specifically grant the Tenant the nonexclusive right to use the common areas and rights of access (including elevators) to the premises?
6. Landlord's right to relocate Tenants - Relocation rights allow Landlord to lease large spaces and relocate small tenants which may have locations preventing the Landlord from making such large deals; generally applies only to smaller tenants (in the 1,000 to 3,000 square foot range); Landlord usually pays relocation costs; rent must be specified for the new space and thought given to rent adjustments if the relocation space is bigger or smaller than original space.
7. Parking spaces - Does the Tenant have the exclusive or nonexclusive right to surface parking or parking garage parking spaces during the term of the Lease? If so, specify in the Lease.
8. Options to expand:
(a) Tenant improvements for expansion space - Who pays? What is rent on expansion space? The same rent per square foot as is payable under the Lease? The same rent per square foot as is currently quoted by the Landlord for space in the complex? When does rent start in expansion space? Does expansion space terminate simultaneously with the Lease for original space? Is additional documentation necessary if Tenant exercises its option for the expansion space?
(b) Rights of first refusal - Tenant has right to match offer by another party for applicable space; the Tenant must be notified of Landlord's proposed deal and have a time limit to take the space or decline to take the space so that Landlord can make a deal within a reasonable time.
9. Is a "load factor" (i.e., rent charged on common areas) included? Does the Lease contain careful definitions of "rentable" and "useable" area which match up to the actual architectural computations for such area?