Leased offices can be granted either direct from a landlord or from an existing tenant via a sublease or an assignment.
A new lease direct from a landlord is typically taken for a 3 to 10-year commitment. Unlike serviced offices, much of leased offices is delivered in “Base” condition. This means the premises require a tenant to furnish the premises and install their own internet connection, cabling and partitions for meeting rooms, kitchen areas etc. The initial set up costs are higher for leased offices when compared to serviced offices. However, given that most leases direct from a landlord are taken for a 3 to 10-year term; leased offices do tend to be more cost effective and deliver bespoke private offices for a tenant which is very much their “own space.”
Subleases and assignments are granted by a tenant in possession of an office lease. A sublease is a separate contract that largely reflects the terms of the original lease. Whereas as an assignment is the transfer of the original lease to a separate party. Put simply, an assignment involves changing the names on an original lease contract meaning the incoming tenant (assignee) agrees to all the terms under the original lease.
Subleases and assignments typically allow a tenant to acquire leased premises on a shorter, more flexible basis. The initial set up costs of acquiring leased space under these agreements are reduced as an existing fit out and furnishings can be inherited. Subleases and assignments also provide opportunities to find cheaper, more affordable office space when the rent under the existing lease is less than or more than the market rent. Both subleases and assignments require the landlord’s consent.
When renting commercial office space, the contract between the landlord and tenant, or tenant and subtenant, forms either a lease (inc. sublease & assignments)
A lease is a legal agreement that permits a tenant to occupy property. A new lease can take 2 to 8 weeks to complete and usually requires a commercial real estate professional’s advice regarding its drafting. The process of drafting a lease commences once heads of terms, outlining the key terms/components within a lease, have been negotiated and agreed between the landlord and tenant.
The cost of a leasing an office is dictated by the size of the requirement (sq ft/sq m), location and lease length.
Yes. Commercial properties of all sizes can be for lease.
Yes. You can either take a lease direct from a landlord or from a tenant via a sublease or an assignment.
There isn’t one. If you are taking a lease direct from a landlord, most would expect and wish for a tenant to sign up to a 3 to 10-year lease depending on the property
Although it is legal to do it yourself, it is highly advised you work with a commercial real estate professional to negotiate the lease on your behalf. There are many facets to a typical commercial lease, with a lot of variance between them. A commercial real estate professional can help you navigate the complexities of the lease and best protect your interests.