Commercial property lease: suite in an office building
A comprehensive lease for a suite of offices or business space in a multi-let building. Features: term: 1 to 30 years; guarantor; break provision; rent review options; ss 24-28 opt-out; options for assignment and sub-letting; draft authorised guarantee agreement; draft agreement for security deposit; detailed service charge provisions provide 100% recovery for the landlord; drawn for experienced property professionals.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this office lease
This lease should be used to let office space (or space used for general business purposes) in any sort of multi-tenanted commercial premises. The space being let could comprise of a suite of rooms, or one or more floors of the building. This lease includes detailed service charge provisions to provide 100% recovery of service costs. The landlord is likely to be a property developer or an institutional real estate investor.
We have drawn this lease to maximise the capital value of the let property and to provide acceptable security to a financial institution. The interest of the landlord always comes first.
Similar lease agreements
If you are letting an entire office building to a single tenant, Commercial property lease: office building or Commercial property lease: unit on industrial estate or business park might be more appropriate. The latter includes service charge recovery provisions if the property shares services with others.
Plain English is used throughout except where it is necessary to use legal terms common in this field of law.
The key features of this template can be summarised as:
- term between 1 and 30 years, that is, any usual commercial term (short-term by default)
- for long term leases that require registration, prescribed lease clauses (PLCs) can be added easily
- detailed service charge provisions provide 100% recovery for the landlord;
- assignment and sub-letting
- break provision
- rent review options
- opt-out of Sections 24-28 of the Landlord and Tenant Act 1954 (to exclude security of tenure)
- draft authorised guarantee agreement: enables you to use the opt-out provisions of the 1995 Act
- template for a Security Deposit Agreement
This lease is one of a collection of commercial lease templates designed for use by property professionals: experienced landlords, solicitors and surveyors. Accordingly, the provisions are very thorough.
If you are not familiar with commercial property leases, you may wish to look at the standard version: Business lease: suite of offices. The standard version contains fewer of the technical aspects such as a draft authorised guarantee agreement, fewer landlord's warranties, and less detailed and extensive service charge provisions.
Within the extensive guidance notes to this document, we have provided a discussion on use of security deposit agreement and a template for such an agreement.
We have also included the forms required to exclude security of tenure. These include the prescribed notices to be given to the tenant 14 days before the new lease is created, a declaration of a new lease, and the statutory declaration if less than 14 days notice is given.
The law in this office lease
Commercial lease law is regulated primarily by the Landlord and Tenant Act 1954, amended many times. Account has also been taken of:
- the Landlord and Tenant (Covenants) Act 1995;
- the Regulatory Reform Regulations 2003;
- the Joint Committee's Code for Leasing Business Premises;
- the RICS' Code on Service Charges.
In balancing the codes with the law and the interest of the Landlord, we have tried to comply with the codes but nevertheless, have preferred the interest of the Landlord where there may be a difference.
Lease template contents
This office lease is comprehensive, providing alternative choices for important decisions.
The contents of the lease include 29 provisions and 4 schedules covering:
- rent: amount, other payments, interest on overdue rent, periodic review
- condition and repair of the offices
- alterations with landlord's consent
- tenant's positive obligations
- restrictions on tenant
- deliveries and vehicle management
- preconditions for further development
- indemnities by the tenant and warranties by the landlord
- land registration
- security deposit
- access for landlord
- termination: default notice by landlord; provision for premature termination
- security of tenure excluded
- Schedule 1: service charge: allowing extensive provisions
- Schedule 2: rights reserved
- Schedule 3: draft authorised guarantee agreement
- Schedule 4: security deposit agreement
- Prescribed notices to be sent to tenant to exclude security of tenure
If the term of your lease is for more than seven years, it must be registered with the Land Registry. We provide prescribed lease clauses (PLCs) for long term leases free of charge for download here: prescribed lease clauses. There are instructions on how to add these within the document. There is no need to use these if your intended lease term is seven years or shorter.
This document was written by a solicitor for Net Lawman. It complies with current English law.
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