18 Common Sections in a Lease for Commercial Office Space for Rent in Overland Park, KS
As you get closer to the end of your search for office space for lease in Kansas City, you will come to the negotiation process of finalizing a lease. Before really entering into this phase, it is wise to familiarize yourself with some of the terms you should expect to see in a lease. Below are explanations of some of these sections in a bit of detail, as described in the article “Commercial Lease Documents Explained: Typical Sections in a Commercial Real Estate Lease”:
Deposit: This section will detail any circumstances in which the security deposit payment may be forfeited or returned to the tenant.
Use/Restrictions: This describes what can and cannot be done on the premises of the property; for example, signs and sub-leases may be discussed in this section.
Term: This section describes when the lease begins, ends and or can be renegotiated. This is important, because even something as simple as your exact start date can have a big impact on things like finding insurance coverage for your business while in the space.
Parties: This is where the lease will state who the tenant and landlord is and their official names.
Taxes and Insurance: This section will include a requirement for the tenant to have insurance of some sort on the property to protect both the landlord and the tenant. It is also common in this section to discuss the division of property tax.
Parking: This should discuss details on handicapped parking, employee and customer parking, as well as the availability of space for parking.
Maintenance: This section discusses who is responsible for what in terms of minor or major damages to the space. Most tenants will be responsible for minor damages, while landlords will be responsible for failure of equipment and larger problems.
Hold Over: This term describes the consequences in the event that the tenant does not leave at the end of the leasing term.
Premises: This section describes what exactly you are paying rent for and how the space is divided.
Utilities: This section will describe utility costs, specifically how they are metered and distributed among the tenants. It may also speculate if the tenant needs to pay the landlord utilities and what will happen if they are not paid on time.
Subordination, Non-disturbance, and Attornment: This section will protect the tenant from foreclosure from the landlord. It will most likely describe what will happen if the bank or a new landlord takes over.
Rent: This section will discuss how the rent is distributed and calculated, as well as the common area maintenance and other associated costs that might be included in the rent.
Estoppel: This section touches on what will happen if there is any sort of change landlord’s position, and to verify if the tenant is holding up their leasing responsibilities.
Destruction/Condemnation: This clause will discuss what will happen in the event of the destruction or condemnation of the property.
Assignment and Subletting: If the landlord permits subleasing, this part of the lease will discuss the steps a tenant can take in the event that they want to sublease part of their space.
Options: This section will discuss the possibility of buying property or renting additional space within the same building.
Defaults and Remedies: Describes what the consequences are if one party defaults on the lease agreement, as well as what remedies are possible for the other party.
Once you have gone over your lease it might be a good idea to review the lease with an attorney. This can help you better understand more specific terms and conditions within the contract.
So if you are looking for Kansas Office Space For Rent, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 to set up a tour of one of our spaces or learn more about our commercial property management in Overland Park KS!