How To Read an Office & Commercial Lease

The first Austin commercial office lease that was ever negotiated was probably as simple as a handshake based on just a few business points. Over time however, as business issues became more important and Landlords became smarter about protecting their investments office leases evolved into what they are today………..boring, complicated, and hard for a business owner to interpret.

Simply put Office & Commercial leases basically cover 3 things: 1. what the parties want to happen, 2. what the parties want to prevent from happening, 2. or what might happen based on their experience of what has already happened.

The trick to understanding an office lease is to read the lease with a purpose. As you read each clause, ask yourself: “How could this provision or paragraph affect my business in a negative or positive way?” Most commercial office leases contain the same basic provisions however they may not appear in any particular order and scattered throughout the lease.

While there are a lot of important clauses some clauses are more important than others so don’t get hung up on everyone of them. Focus first on those that will have a direct financial impact on your business and then those that have the potential to affect you financially.

At then end of the day I always recommend that you hire a good real estate attorney to check your work or do the entire lease review for you.

If you have any questions about Office Space or reviewing Office leases please don’t hesitate to contact us.

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