Important Notes When Signing An Office Lease Agreement

Leasing an office is a crucial step in the process of stabilizing and growing a business. However, many companies—especially those renting for the first time—tend to focus solely on location and rental price, while overlooking a thorough review of the lease agreement, a legal factor that directly affects the rights and obligations of both parties.

Below are important considerations businesses should not overlook when signing an office lease agreement.

1. Information of the Parties in the Contract

• Carefully check the landlord’s legal information: legal entity name, business license, or certificate of property ownership.
• Ensure the landlord has legal authority to lease the property.
• The tenant’s information must match the business registration certificate to ensure legal validity.

2. Rent, Management Fees & Related Costs

• Clearly state the rental rate per square meter per month, and how the area is calculated (usable area, gross area, etc.).
• Clarify other fees outside of rent, such as:
  • Management fees
  • Parking fees
  • Electricity, water, internet, and air conditioning charges
• Specify payment terms: how many months in advance, amount of security deposit.

3. Lease Term & Renewal Conditions

• Lease terms are typically 2 – 5 years.
• Clearly state:
  • Start and end date
  • Renewal conditions
  • Notice period before termination (usually 30 – 90 days)

4. Fit-Out Period & Handover Conditions

• Specify the actual handover date and whether the space is raw or fully fitted.
• Will the landlord support free fit-out time?

5. Premises Return Conditions

Most landlords require tenants to return the leased premises in the same condition as when it was handed over. Therefore, tenants should pay close attention to and clearly define this clause in the lease agreement.

6. Early Termination Clause

• Under what circumstances can the lease be terminated early? Will the deposit be forfeited?
• Is subleasing or transfer of the lease permitted?
• What happens to the office fit-out at the end of the lease?

7. Binding Terms & Commitments

• Commitment to use shared areas fairly.
• Regulations regarding noise, advertising signs, and signage.
• Regulations on operating hours, security, fire prevention, and insurance.

8. Appendices & Attached Documents

• Floor plan of the leased space.
• Handover minutes and list of handed-over equipment.
• Additional building rules and usage policies.