Office-Space-Guide-Three

WHAT ARE THE MAIN FINANCIAL TERMS CONTAINED IN THE LEASE FOR
MY OFFICE SPACE?

1. RENT: The total rent for the commercial office space paid monthly but often referred to as
an annual figure;

2. ANNUAL INCREASE: The amount your rent will increase by on an annual basis. Usually a
fixed increase, but it may be increased by the
Consumer Price Index;

3. LEASE TERM: The length the lease agreement?

4. OPTION: An option gives you the right to continue your lease at the end of your lease term
on agreed terms and conditions. A standard Option does not give the Landlord the right to
obligate you to enter into a new lease term at the end of your lease period.

5. METHOD OF RENT REVIEW ON EXERCISE OF OPTION: Is it a market review or a fixed
increase? In our experience market reviews are not
economic for smaller suites;

6. RENTAL BOND (OR LEASE GUARANTEE): What financial security will you provide to the
landlord in the event you are unable to fulfill all of your
obligations under the Lease?

7. PERSONAL GUARANTEE: A personal commitment that should the tenant fail to meet its
financial obligations under the Lease, the Landlord has the right to claim any losses from you
personally;

8. RENT FREE PERIOD: Depending on market conditions, you may be able to negotiate a
period when you do not have to pay rent;

9. MAKE GOOD: an obligation at the end of your lease to return the office premises to the
Landlord in the condition in which you took the office space, often less fair wear and tear.